[Today's Guide]
> Development of e-government supported by multiple departments, large room for industrial improvement
> Photovoltaic enterprises pilot Internet Plus, price of cobalt metal hikes continuously
> Shenjian New Materials to develop aviation manufacturing, Boshi Automation to develop medical robots
> Kingee Culture to further develop Internet-based finance, Zhiguang Electric to acquire assets
[XFA Focus]
○ Development of e-government supported by multiple departments, large room for industrial improvement
------
The National Development and Reform Commission (NDRC), the State Commission Office for Public Sector Reform (SCOPSR) and the Ministry of Finance jointly released the Opinions on Developing Performance Assessment on National E-government Projects on May 11, aiming to improve the overall level of the construction and management of e-government projects, promote the innovation of government management mode and establish efficient government.
Comment: Since the State Council issued document requiring promoting coordinated development of e-government last Nov., a developmental upsurge of e-government sprouts quietly: the discipline inspection committees of multiple places all develop activities encouraging to take photos of problems concerning formalism, bureaucratism, hedonism and extravagance, trying to prevent corruption through system and technology; the government affairs service platform built by Tencent and Alibaba has go online in multiple cities. Users can renew their Hong Kong-Macao permit, etc. on line. But according to the report released by United Nations, China’s e-government development index only ranks the 70th globally and it sees huge improvement space. Among A-share companies, Shenzhen Tianyuan Dic Information Technology Co., Ltd. (300047.SZ) provides police departments with integrated solutions including guard cloud, entry and exit administration; Beijing Thunisoft Co., Ltd. (300271.SZ) serves courts and procuratorate with integrated solutions of informatization.
[XFA Selection]
○ No bank lifts the deposit rate to the maximum in the first day after interest-rate cut. China’s reform on interest rate liberalization is coming to an end.
○ XFA learns from authorities that the standard model contract for PPP (Public-Private Partnership) mechanism might be launched recently.
○ 20 new stocks issue prospectus and the subscription dates fall on next Tuesday and Wednesday.
○ XFA learns from some securities business departments that the number of people waiting in lines to open account has declined. Stock investors born in 1960s and 1970s become the new force in opening account.
○ The 9th China (Shanghai) International Wind Energy Exhibition will be convened on May 13. Leading wind power enterprises are optimistic about the growth of newly installed wind power capacity in these two years.
[Industry Information]
○ Photovoltaic enterprises pilot Internet Plus
------
The “Internet Plus” action plan has swept to photovoltaic industry. Multiple listed photovoltaic companies have gone into action: some build Internet platforms by themselves; some join hands with large-scale Internet companies to have a jump-start. Shenzhen Rainbow Fine Chemical Industry Co., Ltd. (002256.SZ) indicated during the investigation by several institutions in the afternoon of May 8 that the company will resort to technologies like Internet, mobile communication, etc., integrate photovoltaic power station with Internet through cloud computing and big data, and build a green, low-carbon and ecological Internet finance platform. Shenzhen Topray solar Co., Ltd. (002218.SZ) sets up Topray Investment Co., Ltd. to develop Internet finance, trying to integrate the financing and leasing business of photovoltaic power station into Internet.
Comment: The new development mode of energy Internet is almost certain. Its core goal is to make full use of various resources. New energy represented by photovoltaic power and wind power benefit the most and they are speeding up in the way to replace traditional energy. Photovoltaic enterprises piloting energy Internet first will gain dominant right in the competition.
○ Battery of new energy vehicles improves demand on cobalt
------
XFA learns that pushed by the improving downstream demand on the battery of new energy vehicles and the stop production of cobalt smelting plant in Zambia, the price of cobalt metal sees continuous hike since the middle of April, increasing by nearly 4 percent.
Comment: At present, international battery capacity is transferring to China and China’s battery industry takes up 70 percent of its cobalt consumption. Benefited from the explosive production and sales of new energy vehicles, the lithium battery sees obviously increased output this year. It stimulates the demand on cobalt material. As for listed companies, Chengdu Huaze Cobalt & Nickel Material Co., Ltd. (000693.SZ), principally engaged in cobalt and nickel products, recently plans to raise 5 billion yuan through private placement to add stakes in new energy battery material business. Zhejiang Huayou Cobalt Co., Ltd. (603799.SH) occupies nearly 20 percent of domestic cobalt products market. The company is actively implementing the “going out” strategy and acquires the cobalt resources in Congo.
[Companies Hotspot]
○ Ingenic Semiconductor to hold conference to introduce new products
------
It is reported that Ingenic Semiconductor Co., Ltd. (300223.SZ) will hold a strategy conference on May 12 afternoon with the theme of “chips connected with Internet of Things, boundless intelligence”. It will introduce a new generation of wearable intelligent chips and chips for the Internet of Things and intelligent home furnishing as well as intelligent watches, intelligent glasses, intelligent hardware platform and other solutions. Meanwhile, Ingenic Semiconductor will provide Tencent Holdings Limited (00700.HK) with design plans on standard hardware for reference.
It will also announce that its technical strategy will transform from a closed state to an open platform and its products will transform from tablet and e-books to intelligent wearable devices, the Internet of Things and intelligent home furnishing. It is reported that Ingenic Semiconductor will introduce the X1000 processors for the application and development of the Internet of Tings to provide a more competitive platform on the Internet of Things.
[Announcement Interpretation]
○ Shenjian New Materials to develop aviation manufacturing
------
Anhui Shenjian New Materials Co., Ltd. (002361.SZ) proposes to acquire 100 percent equities of Xi’an Jiaye Aviation Technology Co., Ltd. at 425 million yuan by issuing shares at 8.63 yuan per share through private placement. The subject company is principally engaged in aviation and rail transportation and its clients cover enterprises with military engineering and manufacturers of complete trains under the CSR Corporation Limited (01766.SH; 601766.SH) and China CNR Corporation Limited (06199.HK; 601299.SH). In addition, the company also developed plateau unmanned aerial vehicles (UAVs), short takeoff and landing air scoop and cascade of blades UAVs, high-speed drone aircraft, Yanxiang UAVs and gun-launched UAVs. Based on the performance commitment, the net profit after extraordinary items of the subject company in the following three years will be no less than 31.50 million yuan, 41.00 million yuan and 51.00 million yuan, respectively. The stock price of the company closed at 8.31 yuan before trading suspension.
○ Boshi Automation to develop medical robots
------
Harbin Boshi Automation Co., Ltd. (002698.SZ) plans to invest 100 million yuan in the establishment of a wholly-owned subsidiary to develop high-end medical devices and equipment. The subsidiary will obtain 20 percent equities of Harbin Szherui Intelligent Medical Equipment Co., Ltd. with 20 million yuan. The first generation of the robots for minimally invasive surgery and intelligent devices have conducted various animal experiments and the second generation of the products have taken shape.
○ Kingee Culture to further develop Internet-based finance
------
Beijing Kingee Culture Development Co., Ltd. (002721.SZ) intends to contribute 25.50 million yuan in establishing Kingee Holdings Co., Ltd. with Wangxin Group Co., Ltd. and account for 51 percent of the company. The company will provide Internet-based financial services to enterprises in the gold and jewelry industry. It will increase capital and expand shares based on the business development or apply for various financial licenses for operation in the future. The company also plans to establish investment funds with Shenzhen Capital Group Co., Ltd. to seek acquisition subjects.
○ Zhiguang Electric to acquire cable assets from substantial shareholder
------
Guangzhou Zhiguang Electric Co., Ltd. (002169.SZ) proposes to acquire 100 equities of Guangzhou Lingnan Cable Co., Ltd. at 425 million yuan from the substantial shareholder by issuing shares at 11.37 yuan per share through private placement and with cash paid by its subsidiaries. It also plans to raise supporting funds from the directors, executives, senior management and staff shareholding plan at the same price. Based on the performance commitment, the net profit after extraordinary items of Lingnan Cable in the following three years will be no less than 120 million yuan. The stock price of the company closed at 14.81 yuan before trading suspension.
○ Fulin Transportation to indirectly hold equities of Huaxi Securities
------
Sichuan Fulin Transportation Group Co., Ltd. (002357.SZ) plans to raise 1.8 billion yuan by issuing shares at 15 yuan per share through private placement. The actual controller plans to subscribe 30 percent. The proceeds will be used in acquiring 100 percent equities of Dujiangyan Sichuan Power Investment Co., Ltd., which holds 8.67 percent equities of Huaxi Securities. Huaxi Securities is currently under listing preparation.
○ Taiyuan Heavy Industry to invest in rail transportation and maritime engineering equipment through private placement
------
Taiyuan Heavy Industry Co., Ltd. (600169.SH) intends to raise 2.43 billion yuan by issuing shares at no less than 8.93 yuan per share through private placement. The proceeds will be invested in key components in rail transportation and maritime engineering equipment. The stock price of the company closed at 10.41 yuan before trading suspension.
[Trading Trends]
○ Five institutes buy Toyou Feiji Electronics
------
The trading volume ranking list on May 11 shows that five institutes totally bought Toyou Feiji Electronics Co., Ltd. (300302.SZ) with 130 million yuan, accounting for 36 percent of its intraday turnover.
Comment: Toyou Feiji Electronics is engaged in the research, development and application of data storage and protection and disaster recovery and other technologies. Its clients include governments, medical treatment, education, energy, military engineering and other industries. The company is competitive in governments, military engineering, education, scientific research and other industries. Institutes believe that the company is establishing a completely independent and controllable industry information system, which is the pure storage subject in the A-share market and enjoys huge potential.
> Development of e-government supported by multiple departments, large room for industrial improvement
> Photovoltaic enterprises pilot Internet Plus, price of cobalt metal hikes continuously
> Shenjian New Materials to develop aviation manufacturing, Boshi Automation to develop medical robots
> Kingee Culture to further develop Internet-based finance, Zhiguang Electric to acquire assets
[XFA Focus]
○ Development of e-government supported by multiple departments, large room for industrial improvement
------
The National Development and Reform Commission (NDRC), the State Commission Office for Public Sector Reform (SCOPSR) and the Ministry of Finance jointly released the Opinions on Developing Performance Assessment on National E-government Projects on May 11, aiming to improve the overall level of the construction and management of e-government projects, promote the innovation of government management mode and establish efficient government.
Comment: Since the State Council issued document requiring promoting coordinated development of e-government last Nov., a developmental upsurge of e-government sprouts quietly: the discipline inspection committees of multiple places all develop activities encouraging to take photos of problems concerning formalism, bureaucratism, hedonism and extravagance, trying to prevent corruption through system and technology; the government affairs service platform built by Tencent and Alibaba has go online in multiple cities. Users can renew their Hong Kong-Macao permit, etc. on line. But according to the report released by United Nations, China’s e-government development index only ranks the 70th globally and it sees huge improvement space. Among A-share companies, Shenzhen Tianyuan Dic Information Technology Co., Ltd. (300047.SZ) provides police departments with integrated solutions including guard cloud, entry and exit administration; Beijing Thunisoft Co., Ltd. (300271.SZ) serves courts and procuratorate with integrated solutions of informatization.
[XFA Selection]
○ No bank lifts the deposit rate to the maximum in the first day after interest-rate cut. China’s reform on interest rate liberalization is coming to an end.
○ XFA learns from authorities that the standard model contract for PPP (Public-Private Partnership) mechanism might be launched recently.
○ 20 new stocks issue prospectus and the subscription dates fall on next Tuesday and Wednesday.
○ XFA learns from some securities business departments that the number of people waiting in lines to open account has declined. Stock investors born in 1960s and 1970s become the new force in opening account.
○ The 9th China (Shanghai) International Wind Energy Exhibition will be convened on May 13. Leading wind power enterprises are optimistic about the growth of newly installed wind power capacity in these two years.
[Industry Information]
○ Photovoltaic enterprises pilot Internet Plus
------
The “Internet Plus” action plan has swept to photovoltaic industry. Multiple listed photovoltaic companies have gone into action: some build Internet platforms by themselves; some join hands with large-scale Internet companies to have a jump-start. Shenzhen Rainbow Fine Chemical Industry Co., Ltd. (002256.SZ) indicated during the investigation by several institutions in the afternoon of May 8 that the company will resort to technologies like Internet, mobile communication, etc., integrate photovoltaic power station with Internet through cloud computing and big data, and build a green, low-carbon and ecological Internet finance platform. Shenzhen Topray solar Co., Ltd. (002218.SZ) sets up Topray Investment Co., Ltd. to develop Internet finance, trying to integrate the financing and leasing business of photovoltaic power station into Internet.
Comment: The new development mode of energy Internet is almost certain. Its core goal is to make full use of various resources. New energy represented by photovoltaic power and wind power benefit the most and they are speeding up in the way to replace traditional energy. Photovoltaic enterprises piloting energy Internet first will gain dominant right in the competition.
○ Battery of new energy vehicles improves demand on cobalt
------
XFA learns that pushed by the improving downstream demand on the battery of new energy vehicles and the stop production of cobalt smelting plant in Zambia, the price of cobalt metal sees continuous hike since the middle of April, increasing by nearly 4 percent.
Comment: At present, international battery capacity is transferring to China and China’s battery industry takes up 70 percent of its cobalt consumption. Benefited from the explosive production and sales of new energy vehicles, the lithium battery sees obviously increased output this year. It stimulates the demand on cobalt material. As for listed companies, Chengdu Huaze Cobalt & Nickel Material Co., Ltd. (000693.SZ), principally engaged in cobalt and nickel products, recently plans to raise 5 billion yuan through private placement to add stakes in new energy battery material business. Zhejiang Huayou Cobalt Co., Ltd. (603799.SH) occupies nearly 20 percent of domestic cobalt products market. The company is actively implementing the “going out” strategy and acquires the cobalt resources in Congo.
[Companies Hotspot]
○ Ingenic Semiconductor to hold conference to introduce new products
------
It is reported that Ingenic Semiconductor Co., Ltd. (300223.SZ) will hold a strategy conference on May 12 afternoon with the theme of “chips connected with Internet of Things, boundless intelligence”. It will introduce a new generation of wearable intelligent chips and chips for the Internet of Things and intelligent home furnishing as well as intelligent watches, intelligent glasses, intelligent hardware platform and other solutions. Meanwhile, Ingenic Semiconductor will provide Tencent Holdings Limited (00700.HK) with design plans on standard hardware for reference.
It will also announce that its technical strategy will transform from a closed state to an open platform and its products will transform from tablet and e-books to intelligent wearable devices, the Internet of Things and intelligent home furnishing. It is reported that Ingenic Semiconductor will introduce the X1000 processors for the application and development of the Internet of Tings to provide a more competitive platform on the Internet of Things.
[Announcement Interpretation]
○ Shenjian New Materials to develop aviation manufacturing
------
Anhui Shenjian New Materials Co., Ltd. (002361.SZ) proposes to acquire 100 percent equities of Xi’an Jiaye Aviation Technology Co., Ltd. at 425 million yuan by issuing shares at 8.63 yuan per share through private placement. The subject company is principally engaged in aviation and rail transportation and its clients cover enterprises with military engineering and manufacturers of complete trains under the CSR Corporation Limited (01766.SH; 601766.SH) and China CNR Corporation Limited (06199.HK; 601299.SH). In addition, the company also developed plateau unmanned aerial vehicles (UAVs), short takeoff and landing air scoop and cascade of blades UAVs, high-speed drone aircraft, Yanxiang UAVs and gun-launched UAVs. Based on the performance commitment, the net profit after extraordinary items of the subject company in the following three years will be no less than 31.50 million yuan, 41.00 million yuan and 51.00 million yuan, respectively. The stock price of the company closed at 8.31 yuan before trading suspension.
○ Boshi Automation to develop medical robots
------
Harbin Boshi Automation Co., Ltd. (002698.SZ) plans to invest 100 million yuan in the establishment of a wholly-owned subsidiary to develop high-end medical devices and equipment. The subsidiary will obtain 20 percent equities of Harbin Szherui Intelligent Medical Equipment Co., Ltd. with 20 million yuan. The first generation of the robots for minimally invasive surgery and intelligent devices have conducted various animal experiments and the second generation of the products have taken shape.
○ Kingee Culture to further develop Internet-based finance
------
Beijing Kingee Culture Development Co., Ltd. (002721.SZ) intends to contribute 25.50 million yuan in establishing Kingee Holdings Co., Ltd. with Wangxin Group Co., Ltd. and account for 51 percent of the company. The company will provide Internet-based financial services to enterprises in the gold and jewelry industry. It will increase capital and expand shares based on the business development or apply for various financial licenses for operation in the future. The company also plans to establish investment funds with Shenzhen Capital Group Co., Ltd. to seek acquisition subjects.
○ Zhiguang Electric to acquire cable assets from substantial shareholder
------
Guangzhou Zhiguang Electric Co., Ltd. (002169.SZ) proposes to acquire 100 equities of Guangzhou Lingnan Cable Co., Ltd. at 425 million yuan from the substantial shareholder by issuing shares at 11.37 yuan per share through private placement and with cash paid by its subsidiaries. It also plans to raise supporting funds from the directors, executives, senior management and staff shareholding plan at the same price. Based on the performance commitment, the net profit after extraordinary items of Lingnan Cable in the following three years will be no less than 120 million yuan. The stock price of the company closed at 14.81 yuan before trading suspension.
○ Fulin Transportation to indirectly hold equities of Huaxi Securities
------
Sichuan Fulin Transportation Group Co., Ltd. (002357.SZ) plans to raise 1.8 billion yuan by issuing shares at 15 yuan per share through private placement. The actual controller plans to subscribe 30 percent. The proceeds will be used in acquiring 100 percent equities of Dujiangyan Sichuan Power Investment Co., Ltd., which holds 8.67 percent equities of Huaxi Securities. Huaxi Securities is currently under listing preparation.
○ Taiyuan Heavy Industry to invest in rail transportation and maritime engineering equipment through private placement
------
Taiyuan Heavy Industry Co., Ltd. (600169.SH) intends to raise 2.43 billion yuan by issuing shares at no less than 8.93 yuan per share through private placement. The proceeds will be invested in key components in rail transportation and maritime engineering equipment. The stock price of the company closed at 10.41 yuan before trading suspension.
[Trading Trends]
○ Five institutes buy Toyou Feiji Electronics
------
The trading volume ranking list on May 11 shows that five institutes totally bought Toyou Feiji Electronics Co., Ltd. (300302.SZ) with 130 million yuan, accounting for 36 percent of its intraday turnover.
Comment: Toyou Feiji Electronics is engaged in the research, development and application of data storage and protection and disaster recovery and other technologies. Its clients include governments, medical treatment, education, energy, military engineering and other industries. The company is competitive in governments, military engineering, education, scientific research and other industries. Institutes believe that the company is establishing a completely independent and controllable industry information system, which is the pure storage subject in the A-share market and enjoys huge potential.
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