[Today's Guide]
> New policy for real estate effective in April, booming sales in May expectable
> 6~8 nuclear power units to launch this year, artificial intelligence forum convened
> Dongcheng Biochemicals to control Yunke Phar., Huayu Automotive Systems to injected with Huizhong Automotive Manufacturing
> Changan Automobile to develop main business with RMB6 bln, Haiyuan Automatic Equipments to develop new-energy vehicles
[XFA Focus]
○ New policy for real estate effective in April, booming sales in May expectable
------
The sold area of the newly built commercial residential buildings of 25 typical cities sees a month-on-month growth of 14 percent compared with the same period in March in the first 20 days of April, according to the data from Yiju Real Estate Research Institution. With month-on-month growth seeing 64 percent, Beijing marks the most outstanding performance among first-tier cities. As for second-hand housing transaction, Centaline Real Estate Limited sees a brokerage in the mainland of over 650 million yuan in the first 20 days in April, indicating a doubled month-on-month growth and showing that buyers of second-hand housing are accelerating the transaction.
Comment: Under intensive launch of new policies for the house loan of second house, housing fund and the reduction of Reserve Requirement Ratio (RRR), policy-sensitive house buyers aiming to improve living condition actively enter the housing market. Since some banks haven’t started to execute the policy of 40-percent down payment for the house loan of second house, the demand experiences temporary restraint. As this factor eliminated gradually in May and new buildings enter the market at that time, both supply and demand will boom in May. As for listed companies, Beijing Capital Development Co., Ltd. (600376.SH) mainly targets at Beijing market and sees its net profit in the first quarter to grow by 89 percent from year on year; substantial shareholder of China Enterprise Company Limited (600675.SH) will undertake the construction of a park for startup businesses in the Minhang District, Shanghai Municipality; substantial shareholder of Cinda Real Estate Co., Ltd. (600657.SH) owns lots of house-related credit assets and provides the company with invisible land resource pool.
[XFA Selection]
○ Chinese Premier Li Keqiang inspected Xiamen area of Fujian Free Trade Zone on April 22 and emphasized that “streamlining administration and delegating power to the lower levels” should go first.
○ Jiang Yang, deputy president of China Securities Regulatory Commission, indicates that Shenzhen-Hong Kong Stock Connect Program will be pushed actively and Taiwan institutions will be allowed to invest in the Mainland through RQFII.
○ The number of newly opened A-share accounts in Shanghai and Shenzhen stock market saw a month-on-month surge of 94 percent to 3.26 million last week, recording an all-time high. The account opening heats up since individual investors are allowed to open multiple A-share trading accounts with different stockbrokers.
○ The Hong Kong Monetary Authority has totally injected 55 billion HK dollars this month to maintain exchange rate. The emerging new records of Hong Kong stock market lead to the increasing demand on HK dollars.
○The Determination by the State Council on Regulating Market Access for Bankcard Clearing Institutions was released on April 22. Private funds are allowed to enter bankcard clearing market.
○ Officials from the Ministry of Transport indicate that the thirteenth five-year plan for the development of logistics is under formulation and “Internet Plus” goods and logistics action plan will be studied at proper opportunity.
[Industry Information]
○6 6~8 nuclear power units to launch this year, nuclear power equipment enterprises to benefit from booming demand
------
On 2015 China Nuclear Energy Association Annual Conference convened on April 22, Zhang Huazhu, board chairman of the association, introduces that 6 to 8 nuclear power units will be launched this year, accounting for nearly 1/3 of the total nuclear power construction in 30 years in China. Moreover, the 11th China International Exhibition on Nuclear Power Industry is held on April 22 in Beijing. The exhibition promotes nuclear power cooperation and communication between China and foreign countries and is beneficial to the “going out” of China’s nuclear power.
Comment: 2015 is the key year for the restarting of nuclear power. With 6 to 8 units kicked off and 8 units put into operation, the construction of nuclear power enters peak period. Under the promotion of accelerated domestic nuclear power construction and the “going out” strategy, China’s nuclear power equipment enterprises will benefit from the booming demand. Institutions expect that by 2020, conventional island, nuclear island and auxiliary equipment industry will embrace a market of nearly 300 billion yuan. As for listed companies, the third-generation nuclear power ventilation and air conditioning system, designed and developed by Zhejiang Jindun Fans Co., Ltd. (300411.SZ), is listed as national key new products; the nuclear-class-1 main pump case, developed by Anhui Yingliu Electromechanical Co., Ltd. (603308.SH), has passed acceptance, indicating that the company has mastered the critical manufacturing technology of nuclear island casting.
○ Artificial intelligence forum convened on April 22, medical etc., service robots see rapid growth
------
The Artificial Intelligence and Service Robot Forum is convened on April 22. Relevant officials from Beijing Municipal Science & Technology Commission and China Robot Industry Alliance disclose that China will push forward artificial intelligence and accelerate the development of domestic robot industry. XFA also learns that Beijing is mapping out the draft for policies supporting the development of intelligent robot. The draft will be made public in two months.
Comment: Under the joint promotion of the upgrading of manufacturing industry, vanishing demographic dividend and policy support, robot industry is seeing high growth. Robot industry sees key support in multiple provinces in China, for example, Shanghai Municipality, Shenyang City, Kunshan City, etc. have all constructed robot industrial parks. China has become the largest industrial robot market globally. Car industrial robot is the most widely applied, while service robots in medical service, old-age care, etc. areas see the most rapid growth. Among A-share companies, the industrial robots developed by Huagong Tech Company Limited (000988.SZ) are advanced and are mostly applied in car manufacturing area; Wuhan Huazhong Numerical Control Co., Ltd. (300161.SZ) launched the new-generation cloud numerical control service platform at the beginning of the year.
[Announcement Interpretation]
○ Dongcheng Biochemicals to control Yunke Phar. with RMB750 mln to develop nuclide medicine
------
Yantai Dongcheng Biochemicals Co., Ltd. (002675.SZ) proposes to acquire 52 percent equities of Chengdu Yunke Pharmaceutical Co., Ltd. at 750 million yuan by issuing 43.40 million shares at 17.29 yuan per share. It also plans to raise a supporting fund of 80 million yuan by issuing 4 million shares at 20 yuan per share through private placement. The counterparty committed that the net profit after extraordinary items of Yunke Phar. from 2015 to 2017 will be no less than 100 million yuan, 122 million yuan and 146 million yuan, respectively. Yunke Phar. is principally engaged in the production and sale of nuclide medicine, which is used in the radionuclide preparation and its labeled drugs for clinical diagnosis or treatment and is irreplaceable in the treatment of malignant tumor, cardiovascular and cerebrovascular diseases. Dongcheng Biochemicals recorded a net profit of 104 million yuan in 2014.
○ Huayu Automotive Systems to injected with Huizhong Automotive Manufacturing to develop motor-vehicle chassis system
------
Huayu Automotive Systems Company Limited (600741.SH) intends to issue additional shares at 16.17 yuan per share. SAIC Motor Corporation Limited (600104.SH), its substantial shareholder, will participate in the subscription with its 100 percent equities of Shanghai Huizhong Automotive Manufacturing Co., Ltd. priced at 4.5 billion yuan. The remaining 4.46 billion yuan of the proceeds will be mainly invested in intelligent driving, the research and development of core components of new-energy vehicles, vehicle air-conditioning systems, modules and hot forming technology as well as other technologies and repay the corporate bonds and bank loans of 2 billion yuan. Huizhong Automotive Manufacturing is principally engaged in the manufacturing and sale of motor-vehicle chassis and components. It recorded a net profit of 395 million yuan in 2014. Huayu Automotive Systems will establish a motor-vehicle chassis system operation system and achieve the development based on platform and integration after the assets injection.
○ Changan Automobile to raise RMB6 bln through private placement to develop main business
------
Chongqing Changan Automobile Company Limited (000625.SZ) plans to raise 6 billion yuan by issuing shares at 18.7 yuan per share through private placement, which will be invested in the establishment of the passenger car project at Changan automobile city and the “engines capacity adjustment project for Changan automobiles”. China Changan Automobile Group, its controlling shareholder, will subscribe 2.4 billion yuan. The Ziqiang Zhenxing Nos. 1, 2, 3 and 4 subscribed by the management and core staff of the company will subscribe 52 million yuan. The total investment of the two projects will be 6,584 million yuan with an expected annual after-tax profit of 1 billion yuan after putting into operation. Changan Automobile recorded a business revenue of 52.9 billion yuan and a net profit of 7.56 billion yuan in 2014.
○ Haiyuan Automatic Equipments to develop new-energy vehicles with RMB600 mln, actual controllers and senior management to participate in private placement
------
Fujian Haiyuan Automatic Equipments Co., Ltd. (002529.SZ) intends to raise 604 million yuan by issuing 60 million shares at 10.06 yuan per share. 384 million yuan will be invested in the research and development of the manufacturing technology and production line equipment and industrialization project for the components of carbon fiber new-energy vehicles and 220 million yuan will be invested in demonstration project for the production of carbon fiber new-energy vehicles. The assets management plans set by ten senior management, including Li Liangguang, the actual controller and chairman of the company, will subscribe 20 million shares and the remaining will be subscribed by the assets management plan No. 16 of BOSC Ruijin Assets Management (Shanghai) Co., Ltd.
○ Lander Real Estate to develop sports Internet platform
------
Lander Genes under Lander Real Estate Co., Ltd. (000558.SZ) proposes to raise 65 million yuan and acquire 35 percent equities of Zhejiang Wanhang Information Technology Co., Ltd. The latter is principally engaged in the integration and development of sports resources and mobile Internet-based industries. Its sports Internet business platform “Sports World” has signed agreements with nearly 200 offline venues. Both parties agreed that the company will be entitled to acquire its 25 percent equities at least to control it when Wanhang Information meets certain conditions.
[Financial Reports Express]
○ Dingli Communications and Tianma Bearing expects growth in H1
------
Dingli Communications Corp., Ltd. (300050.SZ) recorded a year-on-year growth of 476 percent in net profit in the first quarter and expects an increase of 140 to 170 percent in the net profit from January to June. Tianma Bearing Group Co., Ltd. (002122.SZ) recorded a year-on-year growth of 102 percent in net profit in the first quarter and expects an increase of 50 to 100 percent in the net profit from January to June. Suzhou Dongshan Precision Manufacturing Co., Ltd. (002384.SZ) recorded a year-on-year growth of 96 percent in net profit in the first quarter and expects an increase of 330 to 380 percent in the net profit from January to June. Hainan Strait Shipping Co., Ltd. (002320.SZ) recorded a year-on-year growth of 147 percent in net profit in the first quarter and expects an increase of 20 to 50 percent in the net profit from January to June.
○ Jieshun Science and Technology and Chuantou Energy propose high share conversion and dividend
------
Shenzhen Jieshun Science and Technology Industry Co., Ltd. (002609.SZ) records a year-on-year growth of 38 percent in its 2014 net profit and proposes an 8-for-10 conversion of capital surplus into shares combined with 2 shares and 0.5 yuan dividend for every 10 shares. Sichuan Provincial Investment Group Company Limited, the controlling shareholder of Sichuan Chuantou Energy Co., Ltd. (600674.SH), proposes a 10-for-10 conversion of capital surplus into shares combined with 3 yuan dividend for every 10 shares in its 2014 profit distribution plan.
[Trading Trends]
○ Three institutes buy Batian Ecotypic Engineering
------
The trading volume ranking list on April 22 shows that three institutes bought Shenzhen Batian Ecotypic Engineering Co., Ltd. (002170.SZ) with a total of 135 million yuan, accounting for 16 percent of its intraday turnover. Meanwhile, an institute sold it with 28.86 million yuan.
Comment: Institutes believe that Beijing Jinhe Tiancheng Technology Company Limited, which is acquired by the company, has accumulated massive data in the agricultural industry. It is complementary with the ingredient database of the company. The company’s strategic development of the whole industrial chain in the big planting data will guarantee high growth in the future.
> New policy for real estate effective in April, booming sales in May expectable
> 6~8 nuclear power units to launch this year, artificial intelligence forum convened
> Dongcheng Biochemicals to control Yunke Phar., Huayu Automotive Systems to injected with Huizhong Automotive Manufacturing
> Changan Automobile to develop main business with RMB6 bln, Haiyuan Automatic Equipments to develop new-energy vehicles
[XFA Focus]
○ New policy for real estate effective in April, booming sales in May expectable
------
The sold area of the newly built commercial residential buildings of 25 typical cities sees a month-on-month growth of 14 percent compared with the same period in March in the first 20 days of April, according to the data from Yiju Real Estate Research Institution. With month-on-month growth seeing 64 percent, Beijing marks the most outstanding performance among first-tier cities. As for second-hand housing transaction, Centaline Real Estate Limited sees a brokerage in the mainland of over 650 million yuan in the first 20 days in April, indicating a doubled month-on-month growth and showing that buyers of second-hand housing are accelerating the transaction.
Comment: Under intensive launch of new policies for the house loan of second house, housing fund and the reduction of Reserve Requirement Ratio (RRR), policy-sensitive house buyers aiming to improve living condition actively enter the housing market. Since some banks haven’t started to execute the policy of 40-percent down payment for the house loan of second house, the demand experiences temporary restraint. As this factor eliminated gradually in May and new buildings enter the market at that time, both supply and demand will boom in May. As for listed companies, Beijing Capital Development Co., Ltd. (600376.SH) mainly targets at Beijing market and sees its net profit in the first quarter to grow by 89 percent from year on year; substantial shareholder of China Enterprise Company Limited (600675.SH) will undertake the construction of a park for startup businesses in the Minhang District, Shanghai Municipality; substantial shareholder of Cinda Real Estate Co., Ltd. (600657.SH) owns lots of house-related credit assets and provides the company with invisible land resource pool.
[XFA Selection]
○ Chinese Premier Li Keqiang inspected Xiamen area of Fujian Free Trade Zone on April 22 and emphasized that “streamlining administration and delegating power to the lower levels” should go first.
○ Jiang Yang, deputy president of China Securities Regulatory Commission, indicates that Shenzhen-Hong Kong Stock Connect Program will be pushed actively and Taiwan institutions will be allowed to invest in the Mainland through RQFII.
○ The number of newly opened A-share accounts in Shanghai and Shenzhen stock market saw a month-on-month surge of 94 percent to 3.26 million last week, recording an all-time high. The account opening heats up since individual investors are allowed to open multiple A-share trading accounts with different stockbrokers.
○ The Hong Kong Monetary Authority has totally injected 55 billion HK dollars this month to maintain exchange rate. The emerging new records of Hong Kong stock market lead to the increasing demand on HK dollars.
○The Determination by the State Council on Regulating Market Access for Bankcard Clearing Institutions was released on April 22. Private funds are allowed to enter bankcard clearing market.
○ Officials from the Ministry of Transport indicate that the thirteenth five-year plan for the development of logistics is under formulation and “Internet Plus” goods and logistics action plan will be studied at proper opportunity.
[Industry Information]
○6 6~8 nuclear power units to launch this year, nuclear power equipment enterprises to benefit from booming demand
------
On 2015 China Nuclear Energy Association Annual Conference convened on April 22, Zhang Huazhu, board chairman of the association, introduces that 6 to 8 nuclear power units will be launched this year, accounting for nearly 1/3 of the total nuclear power construction in 30 years in China. Moreover, the 11th China International Exhibition on Nuclear Power Industry is held on April 22 in Beijing. The exhibition promotes nuclear power cooperation and communication between China and foreign countries and is beneficial to the “going out” of China’s nuclear power.
Comment: 2015 is the key year for the restarting of nuclear power. With 6 to 8 units kicked off and 8 units put into operation, the construction of nuclear power enters peak period. Under the promotion of accelerated domestic nuclear power construction and the “going out” strategy, China’s nuclear power equipment enterprises will benefit from the booming demand. Institutions expect that by 2020, conventional island, nuclear island and auxiliary equipment industry will embrace a market of nearly 300 billion yuan. As for listed companies, the third-generation nuclear power ventilation and air conditioning system, designed and developed by Zhejiang Jindun Fans Co., Ltd. (300411.SZ), is listed as national key new products; the nuclear-class-1 main pump case, developed by Anhui Yingliu Electromechanical Co., Ltd. (603308.SH), has passed acceptance, indicating that the company has mastered the critical manufacturing technology of nuclear island casting.
○ Artificial intelligence forum convened on April 22, medical etc., service robots see rapid growth
------
The Artificial Intelligence and Service Robot Forum is convened on April 22. Relevant officials from Beijing Municipal Science & Technology Commission and China Robot Industry Alliance disclose that China will push forward artificial intelligence and accelerate the development of domestic robot industry. XFA also learns that Beijing is mapping out the draft for policies supporting the development of intelligent robot. The draft will be made public in two months.
Comment: Under the joint promotion of the upgrading of manufacturing industry, vanishing demographic dividend and policy support, robot industry is seeing high growth. Robot industry sees key support in multiple provinces in China, for example, Shanghai Municipality, Shenyang City, Kunshan City, etc. have all constructed robot industrial parks. China has become the largest industrial robot market globally. Car industrial robot is the most widely applied, while service robots in medical service, old-age care, etc. areas see the most rapid growth. Among A-share companies, the industrial robots developed by Huagong Tech Company Limited (000988.SZ) are advanced and are mostly applied in car manufacturing area; Wuhan Huazhong Numerical Control Co., Ltd. (300161.SZ) launched the new-generation cloud numerical control service platform at the beginning of the year.
[Announcement Interpretation]
○ Dongcheng Biochemicals to control Yunke Phar. with RMB750 mln to develop nuclide medicine
------
Yantai Dongcheng Biochemicals Co., Ltd. (002675.SZ) proposes to acquire 52 percent equities of Chengdu Yunke Pharmaceutical Co., Ltd. at 750 million yuan by issuing 43.40 million shares at 17.29 yuan per share. It also plans to raise a supporting fund of 80 million yuan by issuing 4 million shares at 20 yuan per share through private placement. The counterparty committed that the net profit after extraordinary items of Yunke Phar. from 2015 to 2017 will be no less than 100 million yuan, 122 million yuan and 146 million yuan, respectively. Yunke Phar. is principally engaged in the production and sale of nuclide medicine, which is used in the radionuclide preparation and its labeled drugs for clinical diagnosis or treatment and is irreplaceable in the treatment of malignant tumor, cardiovascular and cerebrovascular diseases. Dongcheng Biochemicals recorded a net profit of 104 million yuan in 2014.
○ Huayu Automotive Systems to injected with Huizhong Automotive Manufacturing to develop motor-vehicle chassis system
------
Huayu Automotive Systems Company Limited (600741.SH) intends to issue additional shares at 16.17 yuan per share. SAIC Motor Corporation Limited (600104.SH), its substantial shareholder, will participate in the subscription with its 100 percent equities of Shanghai Huizhong Automotive Manufacturing Co., Ltd. priced at 4.5 billion yuan. The remaining 4.46 billion yuan of the proceeds will be mainly invested in intelligent driving, the research and development of core components of new-energy vehicles, vehicle air-conditioning systems, modules and hot forming technology as well as other technologies and repay the corporate bonds and bank loans of 2 billion yuan. Huizhong Automotive Manufacturing is principally engaged in the manufacturing and sale of motor-vehicle chassis and components. It recorded a net profit of 395 million yuan in 2014. Huayu Automotive Systems will establish a motor-vehicle chassis system operation system and achieve the development based on platform and integration after the assets injection.
○ Changan Automobile to raise RMB6 bln through private placement to develop main business
------
Chongqing Changan Automobile Company Limited (000625.SZ) plans to raise 6 billion yuan by issuing shares at 18.7 yuan per share through private placement, which will be invested in the establishment of the passenger car project at Changan automobile city and the “engines capacity adjustment project for Changan automobiles”. China Changan Automobile Group, its controlling shareholder, will subscribe 2.4 billion yuan. The Ziqiang Zhenxing Nos. 1, 2, 3 and 4 subscribed by the management and core staff of the company will subscribe 52 million yuan. The total investment of the two projects will be 6,584 million yuan with an expected annual after-tax profit of 1 billion yuan after putting into operation. Changan Automobile recorded a business revenue of 52.9 billion yuan and a net profit of 7.56 billion yuan in 2014.
○ Haiyuan Automatic Equipments to develop new-energy vehicles with RMB600 mln, actual controllers and senior management to participate in private placement
------
Fujian Haiyuan Automatic Equipments Co., Ltd. (002529.SZ) intends to raise 604 million yuan by issuing 60 million shares at 10.06 yuan per share. 384 million yuan will be invested in the research and development of the manufacturing technology and production line equipment and industrialization project for the components of carbon fiber new-energy vehicles and 220 million yuan will be invested in demonstration project for the production of carbon fiber new-energy vehicles. The assets management plans set by ten senior management, including Li Liangguang, the actual controller and chairman of the company, will subscribe 20 million shares and the remaining will be subscribed by the assets management plan No. 16 of BOSC Ruijin Assets Management (Shanghai) Co., Ltd.
○ Lander Real Estate to develop sports Internet platform
------
Lander Genes under Lander Real Estate Co., Ltd. (000558.SZ) proposes to raise 65 million yuan and acquire 35 percent equities of Zhejiang Wanhang Information Technology Co., Ltd. The latter is principally engaged in the integration and development of sports resources and mobile Internet-based industries. Its sports Internet business platform “Sports World” has signed agreements with nearly 200 offline venues. Both parties agreed that the company will be entitled to acquire its 25 percent equities at least to control it when Wanhang Information meets certain conditions.
[Financial Reports Express]
○ Dingli Communications and Tianma Bearing expects growth in H1
------
Dingli Communications Corp., Ltd. (300050.SZ) recorded a year-on-year growth of 476 percent in net profit in the first quarter and expects an increase of 140 to 170 percent in the net profit from January to June. Tianma Bearing Group Co., Ltd. (002122.SZ) recorded a year-on-year growth of 102 percent in net profit in the first quarter and expects an increase of 50 to 100 percent in the net profit from January to June. Suzhou Dongshan Precision Manufacturing Co., Ltd. (002384.SZ) recorded a year-on-year growth of 96 percent in net profit in the first quarter and expects an increase of 330 to 380 percent in the net profit from January to June. Hainan Strait Shipping Co., Ltd. (002320.SZ) recorded a year-on-year growth of 147 percent in net profit in the first quarter and expects an increase of 20 to 50 percent in the net profit from January to June.
○ Jieshun Science and Technology and Chuantou Energy propose high share conversion and dividend
------
Shenzhen Jieshun Science and Technology Industry Co., Ltd. (002609.SZ) records a year-on-year growth of 38 percent in its 2014 net profit and proposes an 8-for-10 conversion of capital surplus into shares combined with 2 shares and 0.5 yuan dividend for every 10 shares. Sichuan Provincial Investment Group Company Limited, the controlling shareholder of Sichuan Chuantou Energy Co., Ltd. (600674.SH), proposes a 10-for-10 conversion of capital surplus into shares combined with 3 yuan dividend for every 10 shares in its 2014 profit distribution plan.
[Trading Trends]
○ Three institutes buy Batian Ecotypic Engineering
------
The trading volume ranking list on April 22 shows that three institutes bought Shenzhen Batian Ecotypic Engineering Co., Ltd. (002170.SZ) with a total of 135 million yuan, accounting for 16 percent of its intraday turnover. Meanwhile, an institute sold it with 28.86 million yuan.
Comment: Institutes believe that Beijing Jinhe Tiancheng Technology Company Limited, which is acquired by the company, has accumulated massive data in the agricultural industry. It is complementary with the ingredient database of the company. The company’s strategic development of the whole industrial chain in the big planting data will guarantee high growth in the future.
Latest comments