[Today's Guide]
> SARFT and MOF promote “Internet + publication”, new commercial mode brings development space
> State Administration of Work Safety promotes intelligent construction of colliery, both quantity and price of rayon staple hike
> Xinlong Electrical to develop anti-terrorism and public security, Easpring Material Technology to acquire Zodngoc Automatic Technology
> Orbita Control Engineering to develop satellite application through private placement, Zhongding Sealing Parts to acquire overseas company and develop vehicle e-business
[XFA Focus]
○ SARFT and MOF promote “Internet + publication”, new commercial mode brings development space
------
The State Administration of Press, Publication, Radio, Film and Television (SARFT) and the Ministry of Finance (MOF) jointly released the Guidance on Promoting Integrated Development of Traditional and Emerging Publication on April 9. The promotion of “Internet + publication” is prioritized and the development of new businesses like mobile reading, online education, etc. will be accelerated. The Guidance also supports traditional publication enterprises to control Internet enterprises and backs publication enterprises up in trans-regional, trans-industries, trans-media and trans-ownership merger and acquisition. XFA further learns that financial support policies like special capital for culture industry development have been arranged. Financial policies will also be launched to support cultural creative industry.
Comment: The rapid growth of emerging media has changed the structure of traditional public opinion guidance and propagation. Chinese President Xi Jinping convened the meeting of the central leading group for deepening overall reform last year to promote the integrated development of traditional and emerging media. Several traditional publishing enterprises have moved out to grasp the initiative in new media area. Northern United Publishing & Media (Group) Company Limited (601999.SH) owns Chunfeng Micro-film Digital Platform and “One Cloud Multi Screen” project, etc. and puts its hand to trans-regional strategic cooperation; China South Publishing & Media Group Co., Ltd. (601098.SH) saw doubled orders in regional education cloud, e-schoolbag, etc. last year; Anhui Xinhua Media Co., Ltd. (601801.SH) cooperates with Tencent to build experiential O2O book store.
[XFA Selection]
○ Four departments issue guidance to guarantee and standardize actions that lease social grain storage facilities to store policy-related grains.
○ Data from the China Association of Automobile Manufacturers shows that totally 14,100 new energy cars were sold in March, indicating a year-on-year growth of 300 percent.
○ The Ministry of Foreign Affairs indicates that China’s construction on some of its islands in the South China Sea is within sovereignty and the efforts are aimed more at providing civilian services.
○ The People’s Daily, Xinhua News Agency, and other main news media simultaneously launched the interview on the construction of “One Belt and One Road” on April 9.
○ The quota of Hong Stock Connect Program was used up for two consecutive trading days. Several QDII funds announced suspension of subscription.
○ China Petrochemical Corporation proposes in-depth integration of Internet and petrochemical to build an Internet-based new commercial pattern of petrochemicals.
[Industry Information]
○ State Administration of Work Safety promotes intelligent construction of colliery, coal mining machinery enterprises embrace transformation and upgrading opportunities
------
Yang Dongliang, head of the State Administration of Work Safety, emphasized on the National Major Coal Enterprises Forum convened on April 9 that sufficient input shall be given to safety investment and no delay is allowed on upgrading the equipment. The mechanization level of small coal mines shall be improved continuously; the automation and intellectualization construction of middle- and large-scale coal mines shall be promoted; the level of productive force shall be enhanced continuously to achieve safety fundamentally.
Comment: Safety production of coal shall rely on technology and mechanization. Referring to the historical experience of developed countries like the U.S., it is a general trend to resort to mechanization and intellectualization of coal mining to achieve safe and green exploration of coal. Under the reversed push of intelligent manufacturing strategy and safe production, some Chinese coal mining machinery enterprises are planning for industrial robots. Linzhou Heavy Machinery Group Co., Ltd. (002535.SZ), principally engaged in coal machinery and mine construction, has cooperated with Chinese Academy of Sciences in industrial robot. Zhengzhou Coal Mining Machinery Group Co., Ltd. (601717.SH; 00564.HK), a leading domestic enterprise in hydraulic support products, develops intelligent equipment with wielding robot technology and actively plans for Industry 4.0.
○ Both quantity and price of rayon staple hike, improvement of demand-supply structure brings profit
------
Recently, the rayon staple market sees both quantity and price increase: the price of rayon staple surged around 200 yuan per ton on April 8, setting a new record this year and totally increasing by nearly 5 percent since the Spring Festival. XFA learns that the rayon staple is experiencing a historical low price after several years’ adjustment. The market demand-supply structure is improving. The growth of industrial capacity was lower than the growth of demand last year and there is almost no new capacity added this year.
Comment: Under the context of zero capacity growth and increased demand on order, the industry will see turning point of profit increase. As for listed companies, Tangshan Sanyou Chemical Industries Co., Ltd. (600409.SH) has a capacity of rayon staple of nearly 500,000 ton. The company owns 4,000 mu lands in Caofei Dian, Tangshan City and will benefit from the integrated development of Beijing-Tianjin-Hebei; Jiangsu Aoyang Technology Corporation Limited (002172.SZ) has a capacity of rayon staple of nearly 300,000 ton and enjoys flexible performance.
○ NEA emphasizes capital support to renewable resources, photovoltaic power station industry to benefit
------
The New Energy Department of the National Energy Administration (NEA) distributed a Letter on Listing Financial Deficit of Renewable Energy Subsidy on April 9 with the mark of “extra urgent” to renewable energy power generation enterprises. The aim of the document is to solve the subsidy deficit of renewable energy power generation projects and grid connection projects.
Comment: NEA’s inspection on subsidy deficit with red-tape document highlights that the management has strengthened the supervision force over policy execution. Insufficient subsidy and not-timely distribution occur frequently in the past and impede the development of renewable energy, especially photovoltaic industry. Photovoltaic power station is a capital-intensive industry. The renewable energy subsidy impacts a lot on the profitability of photovoltaic power station. Timely distribution of subsidy helps to stabilize cash flow and improve investors’ investment confidence and initiative in photovoltaic power station. As for listed companies, Jiangsu Akcome Science and Technology Co., Ltd. (002610.SZ) started the asset securitization of photovoltaic power station earlier and resorts to various financing channels to seek for capital support for the development of the station; Shenzhen Rainbow Fine Chemical Industry Co., Ltd. (002256.SZ) has abundant reserved photovoltaic power station projects and it is expected that the total grid-connected power station will reach 600 MW by end-2015.
[Announcement Interpretation]
○ Xinlong Electrical to acquire CLP Xingfa with RMB1.7 bln to develop anti-terrorism and public security
------
Anhui Xinlong Electrical Co., Ltd. (002298.SZ) proposes to acquire 100 percent equities of Beijing CLP Xingfa Technology Co., Ltd. with 1,725 million yuan, making a key step in developing anti-terrorism, public security and intelligent city. It will pay 560 million yuan in cash and the remaining 1,165 million yuan will be paid through issuing 155 million shares at 7.54 yuan per share to the shareholders of CLP Xingfa.
CLP Xingfa has been a leader in designing relevant plans in anti-terrorism and public security, projects implementation and operation and service industries. It assumed various key projects, including the 9191 Project of the General Office of the Central Military Commission, the security command system during the 2014 APEC meeting and the total integration project of the “Sky Network Engineering” of Liupanshui City, Guizhou Province. The company has independently developed intelligent anti-terrorist robots, ducted quadrotor unmanned aerial vehicles (UAVs) and other military equipment and products for anti-terrorism and maintaining stability for mass production.
○ Easpring Material Technology to acquire Zodngoc Automatic Technology to develop high-end intelligent manufacturing
------
Beijing Easpring Material Technology Co., Ltd. (300073.SZ) plans to purchase 100 percent equities of Beijing Zodngoc Automatic Technology Co., Ltd. at 413 million yuan by issuing shares through private placement and in cash. It also proposes to raise 103 million yuan by issuing shares to Datang Telecommunications Investment Co., Ltd. and other companies to pay the consideration in cash. The subscribers include the directors, supervisors and senior management of the company and the assets management products subscribed by the core staff of the subject company. The price of the shares issued through private placement is 17.93 yuan per share and those issued for raising supporting funds are 15.60 yuan per share.
Zodngoc Automatic Technology is principally engaged the production of high-end intelligent equipment and precision rotary die-cutter devices, which are mainly applied in the internal components of die-cutter electronic products. Its end customers include Apple Inc. (NASDAQ: AAPL), Samsung Electronics and other electronic products manufacturers. The committed net profit of Zodngoc Automatic Technology from 2015 to 2017 is 37 million yuan, 43 million yuan and 49 million yuan, respectively. The listed company recorded a loss of 25.59 million yuan in 2014.
○ Orbita Control Engineering to develop satellite application with substantial shareholder fully subscribe private placement
------
Zhuhai Orbita Control Engineering Co., Ltd. (300053.SZ) intends to raise 251 million yuan by issuing 11 million shares at 22.80 yuan per share through private placement to Yan Jun, the substantial shareholder. The proceeds will be invested in the establishment of the satellite and space information platform (phase I)—the key technology study in the handling of big data of satellites and the foundations construction. The company will preliminarily complete the establishment of satellite ground application system through the private placement and edge into the satellite application area to foster new profit growth areas in the future. The shareholding of Yan Jun will increase to 27 percent from 23 percent after the private placement.
○ Zhongding Sealing Parts to acquire overseas company and develop vehicle e-business with RMB1.9 bln
------
Anhui Zhongding Sealing Parts Co., Ltd. (000887.SZ) proposes to raise 1,917 million yuan by issuing 121 million shares at 16.27 yuan per share through private placement. The proceeds will be used in acquiring 100 percent equities of WEGU Holding, the “O2O” e-business services platform in the after-sale vehicle market of Zhongding Sealing Parts, the equipment automation and capacity improvement project for rubber products of Zhongding Sealing Parts and Zhongding Damping as well as supplementing working capital. WEGU is principally engaged in providing industrial rubber/silicon alleviating vibration solutions (AVS) and auto components to lightweight automotive products to German high-end vehicles manufacturers. It is a leader in the vibration and noises alleviating technologies in Europe. The O2O e-business and other two projects will bring another annual net profit of 219 million yuan after completion. The company recorded a net profit of 567 million yuan in 2014.
○ Jingsheng Mechanical & Electrical to acquire Zhongwei Photoelectricity with RMB140 mln
------
Zhejiang Jingsheng Mechanical & Electrical Co., Ltd. (300316.SZ) plans to change the project of “the establishment of zone-melting silicon single crystal furnace with an annual capacity of 25 units” with excessive proceeds. It plans to use 138 million yuan in acquiring 51 percent equities of Hangzhou Zhongwei Photoelectricity Co., Ltd. Zhongwei Photoelectricity is principally engaged in the standard testing of the LED industrial chains, the production lines testing and the intelligent automatic manufacturing system for LED lights. The counterparty committed that its net profit from 2015 to 2017 will be no less than 15 million yuan, 20 million yuan and 30 million yuan, respectively.
[Financial Reports Express]
○ Various companies expect net profit to surge in Q1, securities companies to see profits hiking
------
Lanzhou Haimo Technologies Co., Ltd. (300084.SZ) expects its net profit in the first profit to increase 120 to 200 percent year on year. Far East Smarter Energy Co., Ltd. (600869.SH) estimates that its net profit in the first profit will jump 138 to 198 percent year on year. Shanghai Kinetic Medical Co., Ltd. (300326.SZ) forecasts that its net profit in the first profit will surge 290 to 320 percent year on year.
Guoyuan Securities Company Limited (000728.SZ) sees its net profit in the first quarter increasing 95 percent year on year. Orient Securities Asset Management Co., Ltd. (600958.SH) sees its net profit in the first quarter increasing 790 percent year on year. Huatai Securities Co., Ltd. (601688.SH) sees its net profit in March increasing 332 percent year on year. China Merchants Securities Co., Ltd. (600999.SH) sees its net profit in March increasing 608 percent year on year. CITIC Securities Company Limited (06030.HK; 600030.SH) sees its net profit in March increasing 1,082 percent year on year. Soochow Securities Co., Ltd. (601555.SH) sees its net profit in March increasing 529 percent year on year. Statistics show that 12 of the 15 comparable securities companies see a year-on-year growth of over 200 percent in the turnover and net profit in March.
○ New Culture Media and Orient Wires & Cables propose high share conversion and dividend
------
Shanghai New Culture Media Group Co., Ltd. (300336.SZ) expects its net profit in the first quarter to increase 90 to 110 percent year on year and proposes a 12-for-10 conversion of capital surplus into shares combined with 1 yuan dividend for every 10 shares according to its 2014 annual report. Ningbo Orient Wires & Cables Co., Ltd. (603606.SH) sees a year-on-year growth of 4 percent in its 2014 net profit and proposes an 8-for-10 conversion of capital surplus into shares combined with 1 yuan dividend and 4 shares for every 10 shares.
[Trading Trends]
○ A Three institutional seats buys Shenzhen Properties & Resources
------
The trading volume ranking list on April 9 shows that three institutes bought Shenzhen Properties & Resources Development (Group) Ltd. (000011.SZ) with 45.65 million yuan in total, accounting for 9.47 percent of its intraday turnover.
Comment: The real estate stocks caught most attention on April 9 with many soaring by the daily limit of 10 percent in the afternoon. It is mainly attributed to the introduction of the new policies on Shanghai housing provident funds, which raises the maximum limit of loans for housing purchase from 800,000 yuan to 1.2 million yuan and drives the real estate stocks high. In addition, institutes estimate that the property sales in the second quarter will see a year-on-year increase of 15 to 20 percent. It is advised to increase the shareholding in the real estate sector.
○ Institutes: ChiNext Board adjustment not to reverse surging trend
------
The stocks of emerging industries represented by the ChiNext Board plumped in recent two days. Many private funds interviewed by XFA believe that the adjustment is a normal market behavior as it has surged significantly for a long time. The adjustment will not be significant and it will not last long. Institutes indicate that various OTC capitals are flowing into the capital market recently and the number of newly opened stock and fund accounts hit a new high. New funds are particularly favored in raising capitals and some with the theme of emerging industries can raise up to 5 billion yuan each day. Most of the managers of the above funds with stronger capacity in raising are fund managers with outstanding performance benefiting from stocks of emerging industries. It is estimated that the newly raised capitals will be invested in emerging industries. Besides, there are only 11 ChiNext Board stocks in the CSI 500 constituents. It is groundless to say that the listing of CSI 500 futures curbed the ChiNext Board.
> SARFT and MOF promote “Internet + publication”, new commercial mode brings development space
> State Administration of Work Safety promotes intelligent construction of colliery, both quantity and price of rayon staple hike
> Xinlong Electrical to develop anti-terrorism and public security, Easpring Material Technology to acquire Zodngoc Automatic Technology
> Orbita Control Engineering to develop satellite application through private placement, Zhongding Sealing Parts to acquire overseas company and develop vehicle e-business
[XFA Focus]
○ SARFT and MOF promote “Internet + publication”, new commercial mode brings development space
------
The State Administration of Press, Publication, Radio, Film and Television (SARFT) and the Ministry of Finance (MOF) jointly released the Guidance on Promoting Integrated Development of Traditional and Emerging Publication on April 9. The promotion of “Internet + publication” is prioritized and the development of new businesses like mobile reading, online education, etc. will be accelerated. The Guidance also supports traditional publication enterprises to control Internet enterprises and backs publication enterprises up in trans-regional, trans-industries, trans-media and trans-ownership merger and acquisition. XFA further learns that financial support policies like special capital for culture industry development have been arranged. Financial policies will also be launched to support cultural creative industry.
Comment: The rapid growth of emerging media has changed the structure of traditional public opinion guidance and propagation. Chinese President Xi Jinping convened the meeting of the central leading group for deepening overall reform last year to promote the integrated development of traditional and emerging media. Several traditional publishing enterprises have moved out to grasp the initiative in new media area. Northern United Publishing & Media (Group) Company Limited (601999.SH) owns Chunfeng Micro-film Digital Platform and “One Cloud Multi Screen” project, etc. and puts its hand to trans-regional strategic cooperation; China South Publishing & Media Group Co., Ltd. (601098.SH) saw doubled orders in regional education cloud, e-schoolbag, etc. last year; Anhui Xinhua Media Co., Ltd. (601801.SH) cooperates with Tencent to build experiential O2O book store.
[XFA Selection]
○ Four departments issue guidance to guarantee and standardize actions that lease social grain storage facilities to store policy-related grains.
○ Data from the China Association of Automobile Manufacturers shows that totally 14,100 new energy cars were sold in March, indicating a year-on-year growth of 300 percent.
○ The Ministry of Foreign Affairs indicates that China’s construction on some of its islands in the South China Sea is within sovereignty and the efforts are aimed more at providing civilian services.
○ The People’s Daily, Xinhua News Agency, and other main news media simultaneously launched the interview on the construction of “One Belt and One Road” on April 9.
○ The quota of Hong Stock Connect Program was used up for two consecutive trading days. Several QDII funds announced suspension of subscription.
○ China Petrochemical Corporation proposes in-depth integration of Internet and petrochemical to build an Internet-based new commercial pattern of petrochemicals.
[Industry Information]
○ State Administration of Work Safety promotes intelligent construction of colliery, coal mining machinery enterprises embrace transformation and upgrading opportunities
------
Yang Dongliang, head of the State Administration of Work Safety, emphasized on the National Major Coal Enterprises Forum convened on April 9 that sufficient input shall be given to safety investment and no delay is allowed on upgrading the equipment. The mechanization level of small coal mines shall be improved continuously; the automation and intellectualization construction of middle- and large-scale coal mines shall be promoted; the level of productive force shall be enhanced continuously to achieve safety fundamentally.
Comment: Safety production of coal shall rely on technology and mechanization. Referring to the historical experience of developed countries like the U.S., it is a general trend to resort to mechanization and intellectualization of coal mining to achieve safe and green exploration of coal. Under the reversed push of intelligent manufacturing strategy and safe production, some Chinese coal mining machinery enterprises are planning for industrial robots. Linzhou Heavy Machinery Group Co., Ltd. (002535.SZ), principally engaged in coal machinery and mine construction, has cooperated with Chinese Academy of Sciences in industrial robot. Zhengzhou Coal Mining Machinery Group Co., Ltd. (601717.SH; 00564.HK), a leading domestic enterprise in hydraulic support products, develops intelligent equipment with wielding robot technology and actively plans for Industry 4.0.
○ Both quantity and price of rayon staple hike, improvement of demand-supply structure brings profit
------
Recently, the rayon staple market sees both quantity and price increase: the price of rayon staple surged around 200 yuan per ton on April 8, setting a new record this year and totally increasing by nearly 5 percent since the Spring Festival. XFA learns that the rayon staple is experiencing a historical low price after several years’ adjustment. The market demand-supply structure is improving. The growth of industrial capacity was lower than the growth of demand last year and there is almost no new capacity added this year.
Comment: Under the context of zero capacity growth and increased demand on order, the industry will see turning point of profit increase. As for listed companies, Tangshan Sanyou Chemical Industries Co., Ltd. (600409.SH) has a capacity of rayon staple of nearly 500,000 ton. The company owns 4,000 mu lands in Caofei Dian, Tangshan City and will benefit from the integrated development of Beijing-Tianjin-Hebei; Jiangsu Aoyang Technology Corporation Limited (002172.SZ) has a capacity of rayon staple of nearly 300,000 ton and enjoys flexible performance.
○ NEA emphasizes capital support to renewable resources, photovoltaic power station industry to benefit
------
The New Energy Department of the National Energy Administration (NEA) distributed a Letter on Listing Financial Deficit of Renewable Energy Subsidy on April 9 with the mark of “extra urgent” to renewable energy power generation enterprises. The aim of the document is to solve the subsidy deficit of renewable energy power generation projects and grid connection projects.
Comment: NEA’s inspection on subsidy deficit with red-tape document highlights that the management has strengthened the supervision force over policy execution. Insufficient subsidy and not-timely distribution occur frequently in the past and impede the development of renewable energy, especially photovoltaic industry. Photovoltaic power station is a capital-intensive industry. The renewable energy subsidy impacts a lot on the profitability of photovoltaic power station. Timely distribution of subsidy helps to stabilize cash flow and improve investors’ investment confidence and initiative in photovoltaic power station. As for listed companies, Jiangsu Akcome Science and Technology Co., Ltd. (002610.SZ) started the asset securitization of photovoltaic power station earlier and resorts to various financing channels to seek for capital support for the development of the station; Shenzhen Rainbow Fine Chemical Industry Co., Ltd. (002256.SZ) has abundant reserved photovoltaic power station projects and it is expected that the total grid-connected power station will reach 600 MW by end-2015.
[Announcement Interpretation]
○ Xinlong Electrical to acquire CLP Xingfa with RMB1.7 bln to develop anti-terrorism and public security
------
Anhui Xinlong Electrical Co., Ltd. (002298.SZ) proposes to acquire 100 percent equities of Beijing CLP Xingfa Technology Co., Ltd. with 1,725 million yuan, making a key step in developing anti-terrorism, public security and intelligent city. It will pay 560 million yuan in cash and the remaining 1,165 million yuan will be paid through issuing 155 million shares at 7.54 yuan per share to the shareholders of CLP Xingfa.
CLP Xingfa has been a leader in designing relevant plans in anti-terrorism and public security, projects implementation and operation and service industries. It assumed various key projects, including the 9191 Project of the General Office of the Central Military Commission, the security command system during the 2014 APEC meeting and the total integration project of the “Sky Network Engineering” of Liupanshui City, Guizhou Province. The company has independently developed intelligent anti-terrorist robots, ducted quadrotor unmanned aerial vehicles (UAVs) and other military equipment and products for anti-terrorism and maintaining stability for mass production.
○ Easpring Material Technology to acquire Zodngoc Automatic Technology to develop high-end intelligent manufacturing
------
Beijing Easpring Material Technology Co., Ltd. (300073.SZ) plans to purchase 100 percent equities of Beijing Zodngoc Automatic Technology Co., Ltd. at 413 million yuan by issuing shares through private placement and in cash. It also proposes to raise 103 million yuan by issuing shares to Datang Telecommunications Investment Co., Ltd. and other companies to pay the consideration in cash. The subscribers include the directors, supervisors and senior management of the company and the assets management products subscribed by the core staff of the subject company. The price of the shares issued through private placement is 17.93 yuan per share and those issued for raising supporting funds are 15.60 yuan per share.
Zodngoc Automatic Technology is principally engaged the production of high-end intelligent equipment and precision rotary die-cutter devices, which are mainly applied in the internal components of die-cutter electronic products. Its end customers include Apple Inc. (NASDAQ: AAPL), Samsung Electronics and other electronic products manufacturers. The committed net profit of Zodngoc Automatic Technology from 2015 to 2017 is 37 million yuan, 43 million yuan and 49 million yuan, respectively. The listed company recorded a loss of 25.59 million yuan in 2014.
○ Orbita Control Engineering to develop satellite application with substantial shareholder fully subscribe private placement
------
Zhuhai Orbita Control Engineering Co., Ltd. (300053.SZ) intends to raise 251 million yuan by issuing 11 million shares at 22.80 yuan per share through private placement to Yan Jun, the substantial shareholder. The proceeds will be invested in the establishment of the satellite and space information platform (phase I)—the key technology study in the handling of big data of satellites and the foundations construction. The company will preliminarily complete the establishment of satellite ground application system through the private placement and edge into the satellite application area to foster new profit growth areas in the future. The shareholding of Yan Jun will increase to 27 percent from 23 percent after the private placement.
○ Zhongding Sealing Parts to acquire overseas company and develop vehicle e-business with RMB1.9 bln
------
Anhui Zhongding Sealing Parts Co., Ltd. (000887.SZ) proposes to raise 1,917 million yuan by issuing 121 million shares at 16.27 yuan per share through private placement. The proceeds will be used in acquiring 100 percent equities of WEGU Holding, the “O2O” e-business services platform in the after-sale vehicle market of Zhongding Sealing Parts, the equipment automation and capacity improvement project for rubber products of Zhongding Sealing Parts and Zhongding Damping as well as supplementing working capital. WEGU is principally engaged in providing industrial rubber/silicon alleviating vibration solutions (AVS) and auto components to lightweight automotive products to German high-end vehicles manufacturers. It is a leader in the vibration and noises alleviating technologies in Europe. The O2O e-business and other two projects will bring another annual net profit of 219 million yuan after completion. The company recorded a net profit of 567 million yuan in 2014.
○ Jingsheng Mechanical & Electrical to acquire Zhongwei Photoelectricity with RMB140 mln
------
Zhejiang Jingsheng Mechanical & Electrical Co., Ltd. (300316.SZ) plans to change the project of “the establishment of zone-melting silicon single crystal furnace with an annual capacity of 25 units” with excessive proceeds. It plans to use 138 million yuan in acquiring 51 percent equities of Hangzhou Zhongwei Photoelectricity Co., Ltd. Zhongwei Photoelectricity is principally engaged in the standard testing of the LED industrial chains, the production lines testing and the intelligent automatic manufacturing system for LED lights. The counterparty committed that its net profit from 2015 to 2017 will be no less than 15 million yuan, 20 million yuan and 30 million yuan, respectively.
[Financial Reports Express]
○ Various companies expect net profit to surge in Q1, securities companies to see profits hiking
------
Lanzhou Haimo Technologies Co., Ltd. (300084.SZ) expects its net profit in the first profit to increase 120 to 200 percent year on year. Far East Smarter Energy Co., Ltd. (600869.SH) estimates that its net profit in the first profit will jump 138 to 198 percent year on year. Shanghai Kinetic Medical Co., Ltd. (300326.SZ) forecasts that its net profit in the first profit will surge 290 to 320 percent year on year.
Guoyuan Securities Company Limited (000728.SZ) sees its net profit in the first quarter increasing 95 percent year on year. Orient Securities Asset Management Co., Ltd. (600958.SH) sees its net profit in the first quarter increasing 790 percent year on year. Huatai Securities Co., Ltd. (601688.SH) sees its net profit in March increasing 332 percent year on year. China Merchants Securities Co., Ltd. (600999.SH) sees its net profit in March increasing 608 percent year on year. CITIC Securities Company Limited (06030.HK; 600030.SH) sees its net profit in March increasing 1,082 percent year on year. Soochow Securities Co., Ltd. (601555.SH) sees its net profit in March increasing 529 percent year on year. Statistics show that 12 of the 15 comparable securities companies see a year-on-year growth of over 200 percent in the turnover and net profit in March.
○ New Culture Media and Orient Wires & Cables propose high share conversion and dividend
------
Shanghai New Culture Media Group Co., Ltd. (300336.SZ) expects its net profit in the first quarter to increase 90 to 110 percent year on year and proposes a 12-for-10 conversion of capital surplus into shares combined with 1 yuan dividend for every 10 shares according to its 2014 annual report. Ningbo Orient Wires & Cables Co., Ltd. (603606.SH) sees a year-on-year growth of 4 percent in its 2014 net profit and proposes an 8-for-10 conversion of capital surplus into shares combined with 1 yuan dividend and 4 shares for every 10 shares.
[Trading Trends]
○ A Three institutional seats buys Shenzhen Properties & Resources
------
The trading volume ranking list on April 9 shows that three institutes bought Shenzhen Properties & Resources Development (Group) Ltd. (000011.SZ) with 45.65 million yuan in total, accounting for 9.47 percent of its intraday turnover.
Comment: The real estate stocks caught most attention on April 9 with many soaring by the daily limit of 10 percent in the afternoon. It is mainly attributed to the introduction of the new policies on Shanghai housing provident funds, which raises the maximum limit of loans for housing purchase from 800,000 yuan to 1.2 million yuan and drives the real estate stocks high. In addition, institutes estimate that the property sales in the second quarter will see a year-on-year increase of 15 to 20 percent. It is advised to increase the shareholding in the real estate sector.
○ Institutes: ChiNext Board adjustment not to reverse surging trend
------
The stocks of emerging industries represented by the ChiNext Board plumped in recent two days. Many private funds interviewed by XFA believe that the adjustment is a normal market behavior as it has surged significantly for a long time. The adjustment will not be significant and it will not last long. Institutes indicate that various OTC capitals are flowing into the capital market recently and the number of newly opened stock and fund accounts hit a new high. New funds are particularly favored in raising capitals and some with the theme of emerging industries can raise up to 5 billion yuan each day. Most of the managers of the above funds with stronger capacity in raising are fund managers with outstanding performance benefiting from stocks of emerging industries. It is estimated that the newly raised capitals will be invested in emerging industries. Besides, there are only 11 ChiNext Board stocks in the CSI 500 constituents. It is groundless to say that the listing of CSI 500 futures curbed the ChiNext Board.
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