[Today’s Guide]
> Installed capacity for wind power to rise, huge wave of installed capacity expected this year
> Shale exploration to speed up, plan on circular economy in 2015 introduced
> Shenglu Telecommunication to acquire Hengdian, Jinshan Development & Construction to fully control Huajiu Spoke Manufacturing
> ISE Semir Garment to invest in cross e-commerce in Korea, Tongfang Guoxin Electronics to raise RMB2.5 bln to further develop main business
[XFA Focus]
○ Installed capacity for wind power to rise, huge wave of installed capacity expected this year
------
XFA learnt that the total installed capacity of the fifth batch of wind power projects during the 12th Five-year Period approved by the National Energy Administration (NEA) will be about 34 million kilowatt and the plan will be released soon. However, the approved capacity for the first four batches was less than 29 million kilowatt. It is also learnt that the NEA and other departments plan to raise the minimum target for the 13th Five-year Period by 25 percent from 200 million kilowatt to 250 million kilowatt. It means that the new installed capacity for wind power will rise year by year.
Comment: Since the releasing of the government work report, the wind power industry has seen various supporting policies, including documents issued by the State Council, the new power pricing reform plan and urgent circulars of the NEA. Insiders indicate that with the continuous support from the government, the wind power industry will make more steps in development and the wind power market will see a huge wave of installed capacity this year. Many companies expect their results to surge. Xinjiang Goldwind Science and Technology Co., Ltd. (02208.HK; 002202.SZ), which is principally engaged in wind turbine generator systems, expects its results in the first quarter to increase 350 percent to 400 percent. Shanghai Taisheng Wind Power Equipment Co., Ltd. (300129.SZ), which is principally engaged in wind power towers, expects its results to increase 40 percent to 70 percent. Tongyu Heavy Industry Co., Ltd. (300185.SZ), which is principally engaged in wind power main shafts, expects its results to increase 10 percent to 30 percent.
[XFA Selection]
○ The revised version of the Securities Law was submitted to the Standing Committee of the NPC for deliberation and approval on April 20. The version specifies the procedures of the registration system for the issuance of stocks.
○ The Guangdong, Fujian and Tianjin Free Trade Zones will be officially established on April 21. The Ministry of Commerce indicated that four FTZs will share one negative list.
○ The turnover of the Shanghai Stock Exchange (SSE) hit a new high of 1,147.6 billion yuan on April 20. The SSE will gradually solve problems arising after the turnover exceeds 1 trillion yuan.
○ More than 10,000 domestic private funds with a total asset of approximately 2.5 trillion yuan have completed the registration for record.
○ The in-grid installed capacity for photovoltaic power generation increased 5.04 million kilometer in the first quarter, representing an increase of 165 percent from the corresponding period of last year.
[Industry Information]
○ Oil price recovery and supporting policies to accelerate shale gas development
------
Fu Chengyu, Chairman of the China Petroleum & Chemical Corporation (Sinopec, SNP.NYSE; SNP.LSE; 00386.HK; 600028.SH), indicated that the development of shale gas will accelerate this year with the improvement in profitability and various government supports. Besides, stimulated by the decline in U.S. oil wells and the increasing long positions of hedge funds, the oil price has recovered by nearly 30 percent since mid-March.
Comment: Despite the reduction of capital expenditure this year by the three major oil behemoths, namely PetroChina Company Limited (PTR.NYSE; 00857.HK; 601857.SH), Sinopec and CNOOC Limited (00883.HK), the investment in the development of shale gas increased against the trend. Chongqing Municipality introduced the development plan on the shale gas industry for 2015-2020 shows that it will achieve an annual capacity of 15 billion cubic meters for shale gas in 2017, which will multiply the current capacity. Thanks to the oil price recovery and supporting policies, the development of shale gas will accelerate and relevant oilfield services and equipment enterprises will see more orders. In terms of listed companies, Kingdream Public Limited Company (000852.SZ) proposes to acquire SJ Petroleum Machinery Co., Sinopec and other high-quality assets. The plan has been approved by the Issuance Examination Committee of the China Securities Regulatory Commission (CSRC). Shandong Molong Petroleum Machinery Co., Ltd. (00568.HK; 002490.SZ), which is principally engaged in complete machinery and equipment for oil drilling and production and key components, currently has sufficient orders.
○Plan on circular economy in 2015 introduced with biomass energy and “Internet Plus Recycling” as highlights
------
The National Development and Reform Commission (NDRC) prepared the “Plan on Advancing Circular Economy in 2015” on April 20, which proposes to accelerate in the establishment of circular industrial systems, greatly promote the circular development of parks and areas and implement green lifestyles. It highlights the development of biomass energy and deepening turning forestry and agricultural residues into resources as well as the “Internet Plus Recycling” model.
Comment: The core of the circular economy is the efficient and circular use of resources, which is a key driver in the economic transformation and upgrading in China. The NDRC and other departments have introduced various supporting policies and they have greatly promoted the development of biomass energy and other industries in the circular industry. The power generation with biomass energy of Wuhan Kaidi Electric Power Co., Ltd. (000939.SZ) doubled last year. Its plan on acquiring clean energy and assets by issuing additional shares has been approved by the CSRC. Shenzhen Green Eco-manufacture Hi-tech Co., Ltd. (002340.SZ) and the www.aihuishou.com has reached a strategic operation agreement on exploring the “Internet Plus Recycling” model.
[Companies Hotspot]
○ Hikvision Digital Technology to release latest product for civil security and defense on April 21
------
Hangzhou Hikvision Digital Technology Co., Ltd. (002415.SZ) will release the latest products series for ezviz, the product for civil security and defense under it, and the new products for 2015 spring on April 21 in Beijing. The company will define the video contents to serve the “ezviz cloud plus” time, which will integrate the open platform, O2O operation services suppliers, App developers and professional users. There are about 1 million users of ezviz products in the end of last year and about 2 million users in end-March with about 1.6 million access equipment. The business is under rapid development.
[Announcement Interpretation]
○ Shenglu Telecommunication to acquire Hengdian Electronics and develop military engineering
------
Guangdong Shenglu Telecommunication Tech. Co., Ltd. (002446.SZ) proposes to acquire 100 percent equities of Nanjing Hengdian Electronics Co., Ltd. with 750 million yuan by issuing shares and in cash. Shenglu Telecommunication will issue 24.36 million shares to the counterparty at 28.63 yuan per share and pay 52.50 million yuan in cash. It will also raise a supporting fund of 230 million yuan by issuing shares at the same price.
Hengdian Electronics is principally engaged in the application of microwave hybrid integrated circuit and relevant technologies in airborne, ship-borne, missile-borne and other weapons. Its products provide supporting to the radar, electronic warfare and telecommunication systems. The counterparty committed that its net profit from 2015 to 2017 will be 50 million yuan, 60 million yuan and 72 million yuan, respectively.
○ Jinshan Development & Construction to fully control Huajiu Spoke Manufacturing to further develop main business
------
Jinshan Development & Construction Co., Ltd. (600679.SH) plans to acquire 100 percent equities of Jiangsu Huajiu Spoke Manufacturing Co., Ltd. with 535 million yuan by issuing shares at 10.91 yuan per share through private placement. Upon completion, the shareholding of the State-owned Assets Supervision and Administration Commission (SASAC) of Jinshan District, the substantial shareholder of the company, will be decreased to 29.1 percent. The performance of Huajiu Spoke Manufacturing in 2013, 2014 and the first three months of 2015 is 26.43 million yuan, 25.75 million yuan and 6.95 million yuan, respectively. Bicycle spoke business will be added to the bicycle business of the listed company after acquisition.
○ ISE Semir Garment to invest in cross e-commerce in Korea
------
Zhejiang Semir Garment Co., Ltd. (002563.SZ) signs investment agreement with ISE, a Korean company, planning to subscribe 4.51 million new shares at 4,435 KRW per share (the total investment equals to 115 million yuan) issued by ISE. Upon completion, Semir Garment will occupy 17.67 percent equities of ISE Company and becomes its second largest shareholder. Both parties will also join hands in constructing a mobile internet platform in China to develop relevant business.
ISE, a leading enterprise providing e-commerce service in Korea, is listed in KOSDAQ. The company mainly manages WIZWID website and WConcept website. WIZWID website is the first website providing cross e-commerce service in Korea and occupies a market share of 50 percent in Korean’s purchasing service e-commerce market. WConcept website, an e-commerce platform oriented in providing fashion brands to Korean market, ranks the 6th in terms of market share in Korean fashion brands e-commerce market.
○ Tongfang Guoxin Electronics to raise RMB2.5 bln to further develop main business
------
Tongfang Guoxin Electronics Co., Ltd. (002049.SZ) plans to raise 2.53 billion yuan by issuing 78.94 million shares at 32.05 yuan per share. For the raised funds, 1.03 billion yuan will be invested in the upgrading of intelligent card chip technology and the industrialization of supporting testing, 1.12 billion yuan will be invested in the development and industrialization of domestic reconfigurable devices and the rest 0.38 billion yuan will be invested in the technical modification and industrialization of special system application chips.
○ International Medical Investment and Dhc Software join hands with Aliyun
------
Xi'an International Medical Investment Company Limited (000516.SZ) and Dhc Software Co., Ltd. (002065.SZ) join hands with Ali Cloud Computing Co., Ltd. to construct Internet hospital, resident health big data platform and commercial cloud platform. A fully-owned subsidiary of International Medical Investment will be operated as the main body to construct medical diagnosis and treatment platform and intelligent commerce platform; Dhc Software provides International Medical Investment with services about the consulting, design, construction, operation and application development, etc. of future hospitals based on Ali cloud computing platform; Aliyun provides cloud computing product and service and introduces all relevant resources and service (Alipay service, Tmall, etc.) within Alibaba Group.
Comment: Through cooperation, various Internet application means and channels of Dhc Software and Aliyun in network platform construction, big data management, cloud computing product application, O2O interactive marketing, etc. will be implemented. International Medical Investment will build a chain network of “future hospitals” in China.
○ Guirenniao to invest in European football brokerage firm with EUR20 mln
------
Guirenniao Co., Ltd. (603555.SH) plans to invest 20 million Euro in The Best of You Sports, S.A (BOY), a European football brokerage firm, to layout sports industry. CEO of the subject company was the former Director of Communication and the press officer of the first team of the Real Madrid Club de Fútbol. The company pays close attention to the development of Chinese market and it signs the first sponsorship contract in Chinese market for the Real Madrid Club de Fútbol in 2015. The subject company predicts that its profit before tax from 2015, 2016 and 2017 will be 1.50 million Euros, 3.00 million Euros and 8.00 million Euros, respectively.
[Financial Reports Express]
○ Shandong Lipeng and Feima International Supply Chain expect performance growth
------
Due to that Chongqing Huayu Yuanlin Co., Ltd., a wholly-owned-subsidiary of the company, is covered in the consolidated statement, Shandong Lipeng Co., Ltd. (002374.SZ) sees its net profit in the first quarter to grow by 68 percent from year on year and expects its net profit in Jan. to June to see a year-on-year growth of 230~263 percent. Thanks to the expansion of business scale, the net profit of Shenzhen Feima International Supply Chain Co., Ltd. (002210.SZ) in the first quarter sees a year-on-year growth of 322 percent. The net profit of the company from Jan. to June expects to grow by 10~40 percent from year on year.
○ Reclaim Construction and Toyou Feiji Electronics plan high share conversion and dividend
------
With net profit in 2014 seeing a year-on-year growth of 6 percent, Zhejiang Reclaim Construction Group Co., Ltd. (002586.SZ) plans a 10-for-10 conversion of capital surplus into shares combined with 1 yuan dividend for every 10 shares; with net profit in 2014 seeing a year-on-year growth of 32 percent, Toyou Feiji Electronics Co., Ltd. (300302.SZ) proposes a 8-for-10 conversion of capital surplus into shares combined with 0.36 yuan dividend for every 10 shares and the company also launches equity incentive scheme.
[Trading Trends]
○Funds with good performance invest in three sectors in Q1
------
The Q1 reports of funds disclosed recently show that funds with good performance believe that under the background of gradually unveiling reform benefit, easing liquidity and the expectation of a bullish market, social funds flow into stock market and the market will keep robust. The industries invested or regarded as promising by funds with good performance, can mainly be divided into three parts: firstly, it is the Internet Plus. Funds believe that the trend for various industries to join hands with Internet is gradually clear. The combination of Internet with finance, medical service, energy, and agriculture, etc. will bring lots of investment opportunities. Secondly, it is the area related to the rising of a strong country. “One Belt and One Road”, high-end equipment, military service, Free Trade Zone, etc. are involved. Some funds believe that the reform of scientific research institutions and the securitization of military asset might see great breakthrough this year. Considering that the securitization rate of military asset is low, it is almost certain that there will be policy support. Thirdly, it is the SOEs reform. Promotion policies from top to bottom shall be paid attentions to.
○ Tianze Information bought through four institutional seats
------
The trading volume ranking list on April 20 shows that Tianze Information Industry Inc. (300209.SZ) was bought through four institutional seats with a total of 120 million yuan, accounting for 33 percent of its intraday turnover. Meanwhile, another institution sold 10.75 million yuan.
Comment: Tianze Information is a leading vehicle network enterprise in engineering mechanical area. Institutions believe that “Yuntongtu”, the company’s online goods allocation platform, might see rapid popularization. Yuntongtu, established in Huadong Logistics Park, optimizes the demand-supply matching of vehicle and goods and provides online logistics transport capacity trading service for supplier and demander of transport capacity. As user group and trading orders further grow, Yuntongtu will broaden the company’s growth space.
> Installed capacity for wind power to rise, huge wave of installed capacity expected this year
> Shale exploration to speed up, plan on circular economy in 2015 introduced
> Shenglu Telecommunication to acquire Hengdian, Jinshan Development & Construction to fully control Huajiu Spoke Manufacturing
> ISE Semir Garment to invest in cross e-commerce in Korea, Tongfang Guoxin Electronics to raise RMB2.5 bln to further develop main business
[XFA Focus]
○ Installed capacity for wind power to rise, huge wave of installed capacity expected this year
------
XFA learnt that the total installed capacity of the fifth batch of wind power projects during the 12th Five-year Period approved by the National Energy Administration (NEA) will be about 34 million kilowatt and the plan will be released soon. However, the approved capacity for the first four batches was less than 29 million kilowatt. It is also learnt that the NEA and other departments plan to raise the minimum target for the 13th Five-year Period by 25 percent from 200 million kilowatt to 250 million kilowatt. It means that the new installed capacity for wind power will rise year by year.
Comment: Since the releasing of the government work report, the wind power industry has seen various supporting policies, including documents issued by the State Council, the new power pricing reform plan and urgent circulars of the NEA. Insiders indicate that with the continuous support from the government, the wind power industry will make more steps in development and the wind power market will see a huge wave of installed capacity this year. Many companies expect their results to surge. Xinjiang Goldwind Science and Technology Co., Ltd. (02208.HK; 002202.SZ), which is principally engaged in wind turbine generator systems, expects its results in the first quarter to increase 350 percent to 400 percent. Shanghai Taisheng Wind Power Equipment Co., Ltd. (300129.SZ), which is principally engaged in wind power towers, expects its results to increase 40 percent to 70 percent. Tongyu Heavy Industry Co., Ltd. (300185.SZ), which is principally engaged in wind power main shafts, expects its results to increase 10 percent to 30 percent.
[XFA Selection]
○ The revised version of the Securities Law was submitted to the Standing Committee of the NPC for deliberation and approval on April 20. The version specifies the procedures of the registration system for the issuance of stocks.
○ The Guangdong, Fujian and Tianjin Free Trade Zones will be officially established on April 21. The Ministry of Commerce indicated that four FTZs will share one negative list.
○ The turnover of the Shanghai Stock Exchange (SSE) hit a new high of 1,147.6 billion yuan on April 20. The SSE will gradually solve problems arising after the turnover exceeds 1 trillion yuan.
○ More than 10,000 domestic private funds with a total asset of approximately 2.5 trillion yuan have completed the registration for record.
○ The in-grid installed capacity for photovoltaic power generation increased 5.04 million kilometer in the first quarter, representing an increase of 165 percent from the corresponding period of last year.
[Industry Information]
○ Oil price recovery and supporting policies to accelerate shale gas development
------
Fu Chengyu, Chairman of the China Petroleum & Chemical Corporation (Sinopec, SNP.NYSE; SNP.LSE; 00386.HK; 600028.SH), indicated that the development of shale gas will accelerate this year with the improvement in profitability and various government supports. Besides, stimulated by the decline in U.S. oil wells and the increasing long positions of hedge funds, the oil price has recovered by nearly 30 percent since mid-March.
Comment: Despite the reduction of capital expenditure this year by the three major oil behemoths, namely PetroChina Company Limited (PTR.NYSE; 00857.HK; 601857.SH), Sinopec and CNOOC Limited (00883.HK), the investment in the development of shale gas increased against the trend. Chongqing Municipality introduced the development plan on the shale gas industry for 2015-2020 shows that it will achieve an annual capacity of 15 billion cubic meters for shale gas in 2017, which will multiply the current capacity. Thanks to the oil price recovery and supporting policies, the development of shale gas will accelerate and relevant oilfield services and equipment enterprises will see more orders. In terms of listed companies, Kingdream Public Limited Company (000852.SZ) proposes to acquire SJ Petroleum Machinery Co., Sinopec and other high-quality assets. The plan has been approved by the Issuance Examination Committee of the China Securities Regulatory Commission (CSRC). Shandong Molong Petroleum Machinery Co., Ltd. (00568.HK; 002490.SZ), which is principally engaged in complete machinery and equipment for oil drilling and production and key components, currently has sufficient orders.
○Plan on circular economy in 2015 introduced with biomass energy and “Internet Plus Recycling” as highlights
------
The National Development and Reform Commission (NDRC) prepared the “Plan on Advancing Circular Economy in 2015” on April 20, which proposes to accelerate in the establishment of circular industrial systems, greatly promote the circular development of parks and areas and implement green lifestyles. It highlights the development of biomass energy and deepening turning forestry and agricultural residues into resources as well as the “Internet Plus Recycling” model.
Comment: The core of the circular economy is the efficient and circular use of resources, which is a key driver in the economic transformation and upgrading in China. The NDRC and other departments have introduced various supporting policies and they have greatly promoted the development of biomass energy and other industries in the circular industry. The power generation with biomass energy of Wuhan Kaidi Electric Power Co., Ltd. (000939.SZ) doubled last year. Its plan on acquiring clean energy and assets by issuing additional shares has been approved by the CSRC. Shenzhen Green Eco-manufacture Hi-tech Co., Ltd. (002340.SZ) and the www.aihuishou.com has reached a strategic operation agreement on exploring the “Internet Plus Recycling” model.
[Companies Hotspot]
○ Hikvision Digital Technology to release latest product for civil security and defense on April 21
------
Hangzhou Hikvision Digital Technology Co., Ltd. (002415.SZ) will release the latest products series for ezviz, the product for civil security and defense under it, and the new products for 2015 spring on April 21 in Beijing. The company will define the video contents to serve the “ezviz cloud plus” time, which will integrate the open platform, O2O operation services suppliers, App developers and professional users. There are about 1 million users of ezviz products in the end of last year and about 2 million users in end-March with about 1.6 million access equipment. The business is under rapid development.
[Announcement Interpretation]
○ Shenglu Telecommunication to acquire Hengdian Electronics and develop military engineering
------
Guangdong Shenglu Telecommunication Tech. Co., Ltd. (002446.SZ) proposes to acquire 100 percent equities of Nanjing Hengdian Electronics Co., Ltd. with 750 million yuan by issuing shares and in cash. Shenglu Telecommunication will issue 24.36 million shares to the counterparty at 28.63 yuan per share and pay 52.50 million yuan in cash. It will also raise a supporting fund of 230 million yuan by issuing shares at the same price.
Hengdian Electronics is principally engaged in the application of microwave hybrid integrated circuit and relevant technologies in airborne, ship-borne, missile-borne and other weapons. Its products provide supporting to the radar, electronic warfare and telecommunication systems. The counterparty committed that its net profit from 2015 to 2017 will be 50 million yuan, 60 million yuan and 72 million yuan, respectively.
○ Jinshan Development & Construction to fully control Huajiu Spoke Manufacturing to further develop main business
------
Jinshan Development & Construction Co., Ltd. (600679.SH) plans to acquire 100 percent equities of Jiangsu Huajiu Spoke Manufacturing Co., Ltd. with 535 million yuan by issuing shares at 10.91 yuan per share through private placement. Upon completion, the shareholding of the State-owned Assets Supervision and Administration Commission (SASAC) of Jinshan District, the substantial shareholder of the company, will be decreased to 29.1 percent. The performance of Huajiu Spoke Manufacturing in 2013, 2014 and the first three months of 2015 is 26.43 million yuan, 25.75 million yuan and 6.95 million yuan, respectively. Bicycle spoke business will be added to the bicycle business of the listed company after acquisition.
○ ISE Semir Garment to invest in cross e-commerce in Korea
------
Zhejiang Semir Garment Co., Ltd. (002563.SZ) signs investment agreement with ISE, a Korean company, planning to subscribe 4.51 million new shares at 4,435 KRW per share (the total investment equals to 115 million yuan) issued by ISE. Upon completion, Semir Garment will occupy 17.67 percent equities of ISE Company and becomes its second largest shareholder. Both parties will also join hands in constructing a mobile internet platform in China to develop relevant business.
ISE, a leading enterprise providing e-commerce service in Korea, is listed in KOSDAQ. The company mainly manages WIZWID website and WConcept website. WIZWID website is the first website providing cross e-commerce service in Korea and occupies a market share of 50 percent in Korean’s purchasing service e-commerce market. WConcept website, an e-commerce platform oriented in providing fashion brands to Korean market, ranks the 6th in terms of market share in Korean fashion brands e-commerce market.
○ Tongfang Guoxin Electronics to raise RMB2.5 bln to further develop main business
------
Tongfang Guoxin Electronics Co., Ltd. (002049.SZ) plans to raise 2.53 billion yuan by issuing 78.94 million shares at 32.05 yuan per share. For the raised funds, 1.03 billion yuan will be invested in the upgrading of intelligent card chip technology and the industrialization of supporting testing, 1.12 billion yuan will be invested in the development and industrialization of domestic reconfigurable devices and the rest 0.38 billion yuan will be invested in the technical modification and industrialization of special system application chips.
○ International Medical Investment and Dhc Software join hands with Aliyun
------
Xi'an International Medical Investment Company Limited (000516.SZ) and Dhc Software Co., Ltd. (002065.SZ) join hands with Ali Cloud Computing Co., Ltd. to construct Internet hospital, resident health big data platform and commercial cloud platform. A fully-owned subsidiary of International Medical Investment will be operated as the main body to construct medical diagnosis and treatment platform and intelligent commerce platform; Dhc Software provides International Medical Investment with services about the consulting, design, construction, operation and application development, etc. of future hospitals based on Ali cloud computing platform; Aliyun provides cloud computing product and service and introduces all relevant resources and service (Alipay service, Tmall, etc.) within Alibaba Group.
Comment: Through cooperation, various Internet application means and channels of Dhc Software and Aliyun in network platform construction, big data management, cloud computing product application, O2O interactive marketing, etc. will be implemented. International Medical Investment will build a chain network of “future hospitals” in China.
○ Guirenniao to invest in European football brokerage firm with EUR20 mln
------
Guirenniao Co., Ltd. (603555.SH) plans to invest 20 million Euro in The Best of You Sports, S.A (BOY), a European football brokerage firm, to layout sports industry. CEO of the subject company was the former Director of Communication and the press officer of the first team of the Real Madrid Club de Fútbol. The company pays close attention to the development of Chinese market and it signs the first sponsorship contract in Chinese market for the Real Madrid Club de Fútbol in 2015. The subject company predicts that its profit before tax from 2015, 2016 and 2017 will be 1.50 million Euros, 3.00 million Euros and 8.00 million Euros, respectively.
[Financial Reports Express]
○ Shandong Lipeng and Feima International Supply Chain expect performance growth
------
Due to that Chongqing Huayu Yuanlin Co., Ltd., a wholly-owned-subsidiary of the company, is covered in the consolidated statement, Shandong Lipeng Co., Ltd. (002374.SZ) sees its net profit in the first quarter to grow by 68 percent from year on year and expects its net profit in Jan. to June to see a year-on-year growth of 230~263 percent. Thanks to the expansion of business scale, the net profit of Shenzhen Feima International Supply Chain Co., Ltd. (002210.SZ) in the first quarter sees a year-on-year growth of 322 percent. The net profit of the company from Jan. to June expects to grow by 10~40 percent from year on year.
○ Reclaim Construction and Toyou Feiji Electronics plan high share conversion and dividend
------
With net profit in 2014 seeing a year-on-year growth of 6 percent, Zhejiang Reclaim Construction Group Co., Ltd. (002586.SZ) plans a 10-for-10 conversion of capital surplus into shares combined with 1 yuan dividend for every 10 shares; with net profit in 2014 seeing a year-on-year growth of 32 percent, Toyou Feiji Electronics Co., Ltd. (300302.SZ) proposes a 8-for-10 conversion of capital surplus into shares combined with 0.36 yuan dividend for every 10 shares and the company also launches equity incentive scheme.
[Trading Trends]
○Funds with good performance invest in three sectors in Q1
------
The Q1 reports of funds disclosed recently show that funds with good performance believe that under the background of gradually unveiling reform benefit, easing liquidity and the expectation of a bullish market, social funds flow into stock market and the market will keep robust. The industries invested or regarded as promising by funds with good performance, can mainly be divided into three parts: firstly, it is the Internet Plus. Funds believe that the trend for various industries to join hands with Internet is gradually clear. The combination of Internet with finance, medical service, energy, and agriculture, etc. will bring lots of investment opportunities. Secondly, it is the area related to the rising of a strong country. “One Belt and One Road”, high-end equipment, military service, Free Trade Zone, etc. are involved. Some funds believe that the reform of scientific research institutions and the securitization of military asset might see great breakthrough this year. Considering that the securitization rate of military asset is low, it is almost certain that there will be policy support. Thirdly, it is the SOEs reform. Promotion policies from top to bottom shall be paid attentions to.
○ Tianze Information bought through four institutional seats
------
The trading volume ranking list on April 20 shows that Tianze Information Industry Inc. (300209.SZ) was bought through four institutional seats with a total of 120 million yuan, accounting for 33 percent of its intraday turnover. Meanwhile, another institution sold 10.75 million yuan.
Comment: Tianze Information is a leading vehicle network enterprise in engineering mechanical area. Institutions believe that “Yuntongtu”, the company’s online goods allocation platform, might see rapid popularization. Yuntongtu, established in Huadong Logistics Park, optimizes the demand-supply matching of vehicle and goods and provides online logistics transport capacity trading service for supplier and demander of transport capacity. As user group and trading orders further grow, Yuntongtu will broaden the company’s growth space.
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