[Today's Guide]
> Shanghai issues methods on urban renewal, industrial land sees huge hidden appreciation space
> Four departments and commissions support fuel-cell vehicle, BDS industry expected to boom
> Searainbow to invest in establishing new health service platform, Languang Development to invest in 3D biological printing
> Well-known individual investors invest in stocks to reorganize and merge, two institutes buy Glory Medical
[XFA Focus]
○ Shanghai issues methods on urban renewal, industrial land sees huge hidden appreciation space
------
Shanghai Municipality held a press conference on April 29 to introduce the Shanghai Urban Renewal Implementation Measures to be implemented soon. According to the introduction by Shanghai Planning and Land Resources Management Authority, as the utilization of land meets ceiling, the urban construction of Shanghai will get rid of scale expansion and pay more attention to the renewal of stock. Compatibility and conversion of land usage will be allowed under the precondition of obeying regional development guidance and national land law requirement.
Comment: Media reported previously that the total land owned by enterprises supervised by the State-owned Assets Supervision and Administration Commission (SASAC) of Shanghai is more than 660 square kilometers. Along with the industrial restructuring in recent years, traditional manufacturing industry shrinks and the output of these industrial lands is obviously low. Once approved for being converted into commercial or residential land, the value of these lands might see multiple times of increase. As for listed companies, Shanghai Yaohua Pilkington Glass Group Co., Ltd. (600819.SH) has two plants in Kangqiao County, Pudong New Area with a total land of 500 mu; Shanghai Huayi (Group) Company, substantial shareholder of Shanghai 3F New Materials Company Limited (600636.SH), Shanghai Chlor-Alkali Chemical Co., Ltd. (600618.SH) and Double Coin Holdings Ltd. (600623.SH), is pushing forward overall listing and its plants in Wujing County, Minhang District own thousands of mu of lands.
[XFA Selection]
○ Chinese Premier Li Keqiang requires larger breakthrough in aspects including the comprehensive reform of county-level public hospital during the video and telephone conference on deepening medical and health system reform convened on April 29.
○ The central finance will continue the financial subsidy policy for shale gas and promote the development of shale gas industry.
○ China National Nuclear Power Co., Ltd., the substantial shareholder of which is China National Nuclear Corporation, issues prospectus.
○ China Post Group is nodded to reform. 31 provincial-level subsidiaries of China post will be reformed into branch offices.
○ CSR Corporation Limited (601766.SH; 01766.HK) and China CNR Corporation Limited (601299.SH; 06199.HK) are considering acquiring the controlling stake of the railway business under Bombardier Inc., a Canadian multinational aerospace and transportation company, as reported by Bloomberg.
[Industry Information]
○ Four departments and commissions issue new energy car subsidy policy, fuel-cell vehicle favored
------
The website of the Ministry of Finance disclosed on April 29 that four departments and commissions including the Ministry of Industry and Information Technology (MIIT) recently jointly issued 2016-2020 new energy car subsidy policy. The new energy car subsidy continues previous declining policy: except fuel-cell vehicle, the subsidy for the rest cars will decrease 20 percent compared with 2016 from 2017 to 2018 and the subsidy in 2019 to 2020 will decrease 40 percent compared with 2016.
Comment: Along with the decrease of cell cost and the growth of production and sales, the subsidy decrease for new energy car is consistent with market expectations. The subsidy for fuel-cell vehicle does not decrease this time, highlighting policy support. Due to its advantage of long endurance mileage and no pollution, fuel-cell vehicle is popularized in Japan, etc. The development of fuel-cell vehicle will bring market expansion to segmented industries including proton exchange membrane fuel cell and hydrogen storage material. There are two domestic enterprises involved in the development and production of fuel cell: Dalian Sunrise Power Co., Ltd., 9.38 percent equities of which is held by Lanzhou Greatwall Electrical Co., Ltd. (600192.SH), and Shanghai Shen-Li High Tech Co., Ltd., which jointly developed fuel cell business with Shanghai Tongji Science & Technology Industrial Co., Ltd. (600846.SH).
○ CSNC focuses on One Belt and One Road, BDS industry expected to boom
------
XFA learnt that the 6th China Satellite Navigation Conference (CSNC) will be held on May 13 in Xi’an City with the theme of “opening, connectivity and win-win”. The CSNC will focus on the combination between the BeiDou Navigation Satellite System (BDS) and the development of the One Belt and One Road initiatives. The CSNC is the most high-end forum in the BDS system in China.
Comment: With the advancing of the One Belt and One Road strategy, the BDS is expected to go global. It has been applied in Thailand and other countries. China has launched the global network experiment satellite in end-March and will send off various BDS satellites. Institutes estimate that the output of the BDS will reach 400 billion yuan in 2020. In terms of listed companies, Guangzhou Haige Communications Group Incorporated Company (002465.SZ) has received orders from the military and enjoys technological advantages in the satellite communication market. Hwa Create Co., Ltd. (300045.SZ) is quite competitive in the military industry of the BDS. A lot of civil BDS products have to be supplies to meet its orders this year.
[Announcement Interpretation]
○ Searainbow to invest RMB4 bln in establishing new health service platform
------
Searainbow Holding Corp. (000503.SZ) proposes to raise 4 billion yuan by issuing 106 million shares at 37.75 yuan per share through private placement. The proceeds will be invested in the establishment of the “Searainbow New Health Service Platform”. Zhonghaiheng Industrial Development Co., Ltd., the controlling shareholder, Shanghai Harfor Lead Asset Management Co., Ltd. and Everbright Pramerica Fund Management Co., Ltd. will subscribe 1.2 billion yuan, 2.4 billion yuan and 400 million yuan, respectively. It will transform from the medicine bidding and pharmaceutical e-business to the PBM and Searainbow New Health business through the implementation of the project, which will establish a new strategic growth point of the company, namely the Searainbow New Health Service Platform.
○ Languang Development to invest another RMB165 mln in 3D biological printing
------
Sichuan Languang Yingnuo Biological Technology Co., Ltd., a subsidiary of Sichuan Languang Development Co., Ltd. (600466.SH), plans to invest another 165 million yuan in the 3D biological printing project as it has made certain progress in the research and development and application of the biological ink, the 3D biological printer and ancillary software system. It is necessary to make more investments after the initial investment of 50 million yuan. Languang Development and its subsidiary totally hold 100 percent equities of Languang Yingnuo.
○ Furui Medical Science to control medical devices manufacturer Emperor Electronic Technology
------
Echosens, a French subsidiary of Inner Mongolia Furui Medical Science Co., Ltd. (300049.SZ), will purchase 51 percent equities of Shenzhen Emperor Electronic Technology Co., Ltd. by increasing investments to cooperate and jointly expand in the Chinese market. It will contribute 80.80 million yuan in cash and 40 million yuan in proprietary technology. Emperor Electronic Technology is a leading Innovative medical devices manufacturer and a representative in the black-white and color ultrasound as well as visual abortion equipment industry in China. The acquisition will facilitate the homemade Fibroscan to meet the demand in the Chinese market and accelerate the resources consolidation in the diagnostic equipment industry.
[Financial Reports Express]
○ Kondarl expects high growth in interim report
------
Shenzhen Kondarl (Group) Co., Ltd. (000048.SZ) expects its profit in the first half to increase 2,593 to 3,490 percent year on year thanks to the recognition of sales revenue from the real estate development operation. As Shenzhen Hezheng Electronics Co., Ltd. is consolidated in the combined financial statements of the company, Guangdong Shenglu Telecommunication Tech. Co., Ltd. (002446.SZ) recorded a year-on-year growth of 936 percent in the net profit in the first quarter and expects a growth of 603 to 652 percent in the interim report.
[Data Speaks]
○ Well-known individual investors invest in stocks to reorganize and merge
------
XFA’s statistics on the 2014 annual reports and first quarterly reports of this year show that many listed companies were invested by well-known individual investors. Zou Hanshu holds 4.17 million shares of Shanghai Yimin Commercial Group Co., Ltd. (600824.SH) in end-March as the third biggest tradable shareholder. Zou also holds 5 million shares of Foshan Electrical and Lighting Co., Ltd. (000541.SZ). Jiang Zheng, a well-known individual investor good at recognized stocks, holds 4.57 million shares of Zhejiang Jiangshan Chemical Co., Ltd. (002061.SZ) as its fifth biggest shareholder in the end of the first quarter. Jiang also bought 2.71 million shares of Soyea Technology Co., Ltd. (000909.SZ) as its third biggest shareholder.
[Trading Trends]
○ Two institutes buy Glory Medical
------
The trading volume ranking list on April 29 shows that two institutes bought Shenzhen Glory Medical Co., Ltd. (002551.SZ) with 53 million yuan in total, accounting for 7.7 percent of its intraday turnover.
Comment: Institutes believe that the core business of the company has transformed into providing overall solutions to the establishment of hospitals. The company masters the access to hospital terminals, which will be a channel advantage for it to develop the Internet-based medical treatment. The hospital service platform of the company has taken shape and enjoys huge advantages in establishing a big medical services platform based on the medical treatment establishment and trusteeship.
> Shanghai issues methods on urban renewal, industrial land sees huge hidden appreciation space
> Four departments and commissions support fuel-cell vehicle, BDS industry expected to boom
> Searainbow to invest in establishing new health service platform, Languang Development to invest in 3D biological printing
> Well-known individual investors invest in stocks to reorganize and merge, two institutes buy Glory Medical
[XFA Focus]
○ Shanghai issues methods on urban renewal, industrial land sees huge hidden appreciation space
------
Shanghai Municipality held a press conference on April 29 to introduce the Shanghai Urban Renewal Implementation Measures to be implemented soon. According to the introduction by Shanghai Planning and Land Resources Management Authority, as the utilization of land meets ceiling, the urban construction of Shanghai will get rid of scale expansion and pay more attention to the renewal of stock. Compatibility and conversion of land usage will be allowed under the precondition of obeying regional development guidance and national land law requirement.
Comment: Media reported previously that the total land owned by enterprises supervised by the State-owned Assets Supervision and Administration Commission (SASAC) of Shanghai is more than 660 square kilometers. Along with the industrial restructuring in recent years, traditional manufacturing industry shrinks and the output of these industrial lands is obviously low. Once approved for being converted into commercial or residential land, the value of these lands might see multiple times of increase. As for listed companies, Shanghai Yaohua Pilkington Glass Group Co., Ltd. (600819.SH) has two plants in Kangqiao County, Pudong New Area with a total land of 500 mu; Shanghai Huayi (Group) Company, substantial shareholder of Shanghai 3F New Materials Company Limited (600636.SH), Shanghai Chlor-Alkali Chemical Co., Ltd. (600618.SH) and Double Coin Holdings Ltd. (600623.SH), is pushing forward overall listing and its plants in Wujing County, Minhang District own thousands of mu of lands.
[XFA Selection]
○ Chinese Premier Li Keqiang requires larger breakthrough in aspects including the comprehensive reform of county-level public hospital during the video and telephone conference on deepening medical and health system reform convened on April 29.
○ The central finance will continue the financial subsidy policy for shale gas and promote the development of shale gas industry.
○ China National Nuclear Power Co., Ltd., the substantial shareholder of which is China National Nuclear Corporation, issues prospectus.
○ China Post Group is nodded to reform. 31 provincial-level subsidiaries of China post will be reformed into branch offices.
○ CSR Corporation Limited (601766.SH; 01766.HK) and China CNR Corporation Limited (601299.SH; 06199.HK) are considering acquiring the controlling stake of the railway business under Bombardier Inc., a Canadian multinational aerospace and transportation company, as reported by Bloomberg.
[Industry Information]
○ Four departments and commissions issue new energy car subsidy policy, fuel-cell vehicle favored
------
The website of the Ministry of Finance disclosed on April 29 that four departments and commissions including the Ministry of Industry and Information Technology (MIIT) recently jointly issued 2016-2020 new energy car subsidy policy. The new energy car subsidy continues previous declining policy: except fuel-cell vehicle, the subsidy for the rest cars will decrease 20 percent compared with 2016 from 2017 to 2018 and the subsidy in 2019 to 2020 will decrease 40 percent compared with 2016.
Comment: Along with the decrease of cell cost and the growth of production and sales, the subsidy decrease for new energy car is consistent with market expectations. The subsidy for fuel-cell vehicle does not decrease this time, highlighting policy support. Due to its advantage of long endurance mileage and no pollution, fuel-cell vehicle is popularized in Japan, etc. The development of fuel-cell vehicle will bring market expansion to segmented industries including proton exchange membrane fuel cell and hydrogen storage material. There are two domestic enterprises involved in the development and production of fuel cell: Dalian Sunrise Power Co., Ltd., 9.38 percent equities of which is held by Lanzhou Greatwall Electrical Co., Ltd. (600192.SH), and Shanghai Shen-Li High Tech Co., Ltd., which jointly developed fuel cell business with Shanghai Tongji Science & Technology Industrial Co., Ltd. (600846.SH).
○ CSNC focuses on One Belt and One Road, BDS industry expected to boom
------
XFA learnt that the 6th China Satellite Navigation Conference (CSNC) will be held on May 13 in Xi’an City with the theme of “opening, connectivity and win-win”. The CSNC will focus on the combination between the BeiDou Navigation Satellite System (BDS) and the development of the One Belt and One Road initiatives. The CSNC is the most high-end forum in the BDS system in China.
Comment: With the advancing of the One Belt and One Road strategy, the BDS is expected to go global. It has been applied in Thailand and other countries. China has launched the global network experiment satellite in end-March and will send off various BDS satellites. Institutes estimate that the output of the BDS will reach 400 billion yuan in 2020. In terms of listed companies, Guangzhou Haige Communications Group Incorporated Company (002465.SZ) has received orders from the military and enjoys technological advantages in the satellite communication market. Hwa Create Co., Ltd. (300045.SZ) is quite competitive in the military industry of the BDS. A lot of civil BDS products have to be supplies to meet its orders this year.
[Announcement Interpretation]
○ Searainbow to invest RMB4 bln in establishing new health service platform
------
Searainbow Holding Corp. (000503.SZ) proposes to raise 4 billion yuan by issuing 106 million shares at 37.75 yuan per share through private placement. The proceeds will be invested in the establishment of the “Searainbow New Health Service Platform”. Zhonghaiheng Industrial Development Co., Ltd., the controlling shareholder, Shanghai Harfor Lead Asset Management Co., Ltd. and Everbright Pramerica Fund Management Co., Ltd. will subscribe 1.2 billion yuan, 2.4 billion yuan and 400 million yuan, respectively. It will transform from the medicine bidding and pharmaceutical e-business to the PBM and Searainbow New Health business through the implementation of the project, which will establish a new strategic growth point of the company, namely the Searainbow New Health Service Platform.
○ Languang Development to invest another RMB165 mln in 3D biological printing
------
Sichuan Languang Yingnuo Biological Technology Co., Ltd., a subsidiary of Sichuan Languang Development Co., Ltd. (600466.SH), plans to invest another 165 million yuan in the 3D biological printing project as it has made certain progress in the research and development and application of the biological ink, the 3D biological printer and ancillary software system. It is necessary to make more investments after the initial investment of 50 million yuan. Languang Development and its subsidiary totally hold 100 percent equities of Languang Yingnuo.
○ Furui Medical Science to control medical devices manufacturer Emperor Electronic Technology
------
Echosens, a French subsidiary of Inner Mongolia Furui Medical Science Co., Ltd. (300049.SZ), will purchase 51 percent equities of Shenzhen Emperor Electronic Technology Co., Ltd. by increasing investments to cooperate and jointly expand in the Chinese market. It will contribute 80.80 million yuan in cash and 40 million yuan in proprietary technology. Emperor Electronic Technology is a leading Innovative medical devices manufacturer and a representative in the black-white and color ultrasound as well as visual abortion equipment industry in China. The acquisition will facilitate the homemade Fibroscan to meet the demand in the Chinese market and accelerate the resources consolidation in the diagnostic equipment industry.
[Financial Reports Express]
○ Kondarl expects high growth in interim report
------
Shenzhen Kondarl (Group) Co., Ltd. (000048.SZ) expects its profit in the first half to increase 2,593 to 3,490 percent year on year thanks to the recognition of sales revenue from the real estate development operation. As Shenzhen Hezheng Electronics Co., Ltd. is consolidated in the combined financial statements of the company, Guangdong Shenglu Telecommunication Tech. Co., Ltd. (002446.SZ) recorded a year-on-year growth of 936 percent in the net profit in the first quarter and expects a growth of 603 to 652 percent in the interim report.
[Data Speaks]
○ Well-known individual investors invest in stocks to reorganize and merge
------
XFA’s statistics on the 2014 annual reports and first quarterly reports of this year show that many listed companies were invested by well-known individual investors. Zou Hanshu holds 4.17 million shares of Shanghai Yimin Commercial Group Co., Ltd. (600824.SH) in end-March as the third biggest tradable shareholder. Zou also holds 5 million shares of Foshan Electrical and Lighting Co., Ltd. (000541.SZ). Jiang Zheng, a well-known individual investor good at recognized stocks, holds 4.57 million shares of Zhejiang Jiangshan Chemical Co., Ltd. (002061.SZ) as its fifth biggest shareholder in the end of the first quarter. Jiang also bought 2.71 million shares of Soyea Technology Co., Ltd. (000909.SZ) as its third biggest shareholder.
[Trading Trends]
○ Two institutes buy Glory Medical
------
The trading volume ranking list on April 29 shows that two institutes bought Shenzhen Glory Medical Co., Ltd. (002551.SZ) with 53 million yuan in total, accounting for 7.7 percent of its intraday turnover.
Comment: Institutes believe that the core business of the company has transformed into providing overall solutions to the establishment of hospitals. The company masters the access to hospital terminals, which will be a channel advantage for it to develop the Internet-based medical treatment. The hospital service platform of the company has taken shape and enjoys huge advantages in establishing a big medical services platform based on the medical treatment establishment and trusteeship.
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