[Today’s Guide]
> SOEs reform document introduced, following reorganization trend expected
> NEA inspects new energy industries, PV industry to grow more rapidly
> Shenhuaxin to fully control Bada Landscape, UTour International Travel Service to build big data platform
> Tangrenshen to acquire Longhua Agriculture and Animal Husbandry Development, controlling shareholder of Guangdong Mingzhu to subscribe all private placement
[XFA Focus]
○ SOEs reform document introduced, following reorganization trend expected
------
The www.gov.cn released the ‘Opinions on Key Work in Deepening Economic System Reform in 2015’ on May 18, proposing 39 key reform tasks in eight aspects. In terms of ‘deepening enterprise reform’, the ‘Opinions’ firstly mentions the promotion of state-owned enterprises (SOEs) and state capital reform. It will introduce various supporting documents, prepare plans on the structural adjustment and reorganization of central enterprises and accelerate the pilot of companies with the state capital operation and investment.
Comment: The highlight of the ‘Opinions’ is the official introduction of the ‘1+N’ document system in the SOEs reform. In terms of the ranking of key tasks, the SOEs reform enjoys higher priority and a trend of mergers and acquisitions is expected in the future. China CSSC Holdings Limited (600150.SH), a company under the China State Shipbuilding Corporation (CSSC), announced the resign of the chairman. Guangzhou Shipyard International Co. Ltd. (600685.SH), another company under the CSSC, will change its name into CSSC Offshore & Marine Engineering (Group) Company Limited on May 25. Considering that the CSSC and China Shipbuilding Industry Corporation (CSIC) exchanged the chairmen in March for the first time, institutes are optimistic about the following capital operation. China National Building Materials Group Corporation (CNBM), another central enterprise, was listed as a pilot enterprise for the “four reforms” by the State-owned Assets Supervision and Administration Commission. Among the A-share companies under the CNBM, only Ruitai Materials Technology Co., Ltd. (002066.SZ) has not taken any moves this year.
[XFA Selection]
○ The new houses prices in 70 big and medium cities recovered for the first time in 10 months. Li Xunlei, Chief Economist at Haitong Securities Company Limited (06837.HK; 600837.SH), indicated that the inflection point of de-stocking in the real estate industry has emerged.
○ Shandong Province will pilot the transfer of state-owned capital at the provincial level into the social security funds. The first batch of 3.3 billion yuan was approved to transfer on May 18.
○The National Development and Reform Commission (NDRC) and the Ministry of Environmental Protection (MEP) will conduct a special inspection on the environmental power price across the country in the following three months and urge thermal power enterprises to cut emission.
○ The Shanghai Municipal Party Committee will convene a conference on May 25 to deliberate the plan on the Shanghai Technology Innovation Center. Local companies in the high-tech park are likely to benefit.
○ Shanghai Municipal Transportation Commission indicated on May 18 that it has established a working group with Chinese taxi-hailing apps Didi Dache and Kuaidi Dache. It is expected to introduce a pilot plan on tailored taxi services in one to two months.
○ COFCO Tunhe Co., Ltd. (600737.SH) announced that the overall listing is the future development strategy of the COFCO. It currently has no specific plan and timetable for the preparation for the overall listing.
[Industry Information]
○ NEA inspects new energy industries, PV industry to grow more rapidly
------
The National Energy Administration (NEA) frequently inspected new energy industries recently. Nur Bekri, head of the NEA, made a special inspection on the photovoltaic poverty relief and the development of new energy in Anhui Province on May 9. Bekri also conducted a special inspection on the development of hydropower in Yunnan Province on May 10 and 11. He required energy departments at various levels to make more targeted and pragmatic policies meeting the development requirements of the PV industry.
Comment: As a strategically emerging industry in China, the new energy has received strong supports from state policies. The excellent environment for the healthy development of the industry will facilitate the rapid growth of leading enterprises. The target of the installed PV capacity is far beyond the market expectation this year and the trend for the high growth of the industry is increasingly certain. In terms of listed companies, Sungrow Power Supply Co., Ltd. (300274.SZ) enjoys a leading market share in the domestic PV inverter industry. It raised funds to invest in the PV business through private placement. Shenzhen Rainbow Fine Chemical Industry Co., Ltd. (002256.SZ) plans to achieve the target of 1GW PV power installed capacity in three years. The project under construction and in reserve is more than 600MW currently.
○ China to initiate Greater Mekong regional investment plan with USD50 bln
------
XFA learnt on May 18 that China and other countries and regions are initiating a regional investment framework. The framework will be based on the Greater Mekong Subregion Cooperation platform and 50 billion U.S. dollars will be invested to support relevant construction in the transportation, energy, urban construction and education in the countries and regions in 2020. Among the 50 billion U.S. dollars, the Asian Development Bank will contribute 2 billion U.S. dollars. The remaining funds will come from the governments and commercial institutes of various countries and through the PPP model.
Comment: A majority of the projects in the investment plan are in line with the One Belt and One Road initiative proposed by China. Relevant plans made by Guangxi Zhuang Autonomous Region in the Greater Mekong Subregion Cooperation have passed the deliberation of experts. Relevant listed companies will benefit from the huge investment plan. Guangxi Wuzhou Communications Co., Ltd. (600368.SH) is engaged in the development of transportation construction in the region. Beibuwan Port Co., Ltd. (000582.SZ) is the biggest port in the southwestern China and its plan to acquire the port assets from its substantial shareholder through private placement has been passed by the China Securities Regulatory Commission (CSRC).
[Announcement Interpretation]
○ Shenhuaxin to fully control Bada Landscape with RMB1.66 bln
------
Beijing Shenhuaxin Co., Ltd. (000010.SZ) plans to acquire 100 percent equities of Jiangsu Bada Landscape Co., Ltd. with 1.66 billion yuan, among which, 51 percent of the transaction will be paid in cash and 49 percent will be paid by issuing 120 million shares at 6.92 yuan per share through private placement. The subject company is principally engaged in landscaping. The counterparty promises that the net profit of Bada Landscape will be no less than 166 million yuan, 231 million yuan and 330 million yuan, respectively, from 2015 to 2017.
○ UTour International Travel Service to raise RMB2.8 bln through private placement to build big data platform
------
Beijing UTour International Travel Service Co., Ltd. (002707.SZ) plans to raise 2.8 billion yuan by issuing 53.13 million shares at 52.7 yuan per share through private placement to invest in the life service platform of destinations, “Departure Cloud” big data management analysis platform, etc. Feng Bin, actual controller of the company, and Guo Hongbin, director of the company, will subscribe no less than 10 percent of the total private placement. The company’s stock price closed at 67.6 yuan per share before trading suspension.
○ Tangrenshen to acquire Longhua Agriculture and Animal Husbandry Development to expand industrial chain
------
Tangrenshen Group Co., Ltd. (002567.SZ) plans to acquire 90 percent equities of Hunan Longhua Agriculture and Animal Husbandry Development Co., Ltd. with 290 million yuan by issuing 22.46 million shares at 11.07 yuan per share through private placement and paying 43.875 million yuan in cash. It also plans to raise a supporting fund of 290 million yuan at no less than 12.37 yuan per share. The counterparty promises that the net profit of Longhua Agriculture and Animal Husbandry Development will be no less than 26.00 million yuan, 31.20 million yuan and 37.44 million yuan from 2015 to 2017. Longhua Agriculture and Animal Husbandry Development, as the key enterprise in pig breeding area in Hunan Province, form a complete pig industrial chain integrating live pig breeding, boar reproduction and commercial pig breeding.
○ Guangdong Mingzhu to invest in primary land development with RMB2 bln, controlling shareholder to subscribe all private placement
------
Guangdong Mingzhu Group Co., Ltd. (600382.SH) plans to raise 2 billion yuan by issuing 130 million shares at 15 yuan per share through private placement from Shenzhen Jinxin’an Investment Co., Ltd., its controlling shareholder, and two persons acting in concert. The raised fund will be all invested in the primary land development of Southern New Town Phase I in Xinning City and some public facilities construction projects.
○ Xining Special Steel to raise RMB6.3 bln through private placement to pay off debts
------
Xining Special Steel Co., Ltd. (600117.SH) plans to raise 6.36 billion yuan by issuing 1.1 billion shares at 5.76 yuan per share from four companies under the State-owned Assets Supervision and Administration Commission (SASAC) of Qinghai Province including Qinghai Development & Investment Co., Ltd., Qinghai Electromechanical Co., Ltd., Qinghai Materials Industry Group Corporation and Qinghai Motor Transport Group Co., Ltd., the employee shareholding plan, Guohua Life Insurance Co., Ltd., etc. to pay off bank loans. The maximum subscription for Qinghai Development & Investment, Guohua Life Insurance and the employee shareholding plan is 1.44 billion yuan, 576 million yuan and 22.46 million yuan, respectively.
○ Calxon to raise RMB3.9 bln through private placement to quicken strategic transformation
------
China Calxon Group Co., Ltd. (000918.SZ) plans to raise 3.9 billion yuan by issuing 627 million shares at 6.22 yuan per share through private placement, among which, 2.34 billion yuan will be invested in the “City Living Room” project, 400 million yuan will be used in Hangzhou Changhe Project and the rest 1.16 billion yuan will be used to pay off borrowings from financial institutions.
Comment: “City Living Room” integrates governmental service, public service, experiential commerce, F&B/entertainment service, O2O commerce, etc. together. Upon completion, it helps the company to achieve its strategic transformation goal towards new-type urban local life service platform provider.
○ Huangshan Novel bought to the 5 pct limit through secondary market acquisition by funds managed by Song Xiangqian
------
Huangshan Novel Co., Ltd. (002014.SZ) discloses that by May 14, Wudaokou Innovation (Tianjin) Equity Investment Fund Partnership Enterprise and Jiahua Yuanlong (Tianjin) Equity Investment Fund Partnership Enterprise, the manager of both enterprises is Song Xiangqian, respectively hold 7.53 million shares and 7.11 million shares, accounting for 5 percent of the company’s total share capital and reaching the 5 percent limit through secondary market acquisition. Materials show that the above two partnership enterprise continuously overweight the company’s shares from Feb. to May this year with the purpose of investing in secondary market.
[Companies Hotspot]
○ Rural material e-commerce platform under controlling shareholder of Kingenta Ecological Engineering starts trial operation
------
“Nongshang No.1”, a rural material e-commerce platform under the controlling shareholder of Kingenta Ecological Engineering Group Co., Ltd. (002470.SZ), starts trial operation on May 18. The platform gathers entire serial products of more than 10 rural material brands, develops financial business including financial payment, petty loan, etc. and aims to build the largest rural material e-commerce platform in China and achieve a revenue of 10 billion yuan in the future. Kingenta is the only listed platform under its controlling shareholder and has started exploration in rural material e-commerce area.
[Trading Trends]
○ CIMC bought through three institutional seats
------
The trading volume ranking list on May 18 shows that China International Marine Containers (Group) Co., Ltd. (CIMC) (000039.SZ; 02039.HK) was bought through three institutional seats with a total of 140 million yuan, accounting for 8.5 percent of its intraday turnover.
Comment: Thanks to the increasing demand on containers, CIMC achieves a net profit of around 500 million yuan in the first quarter, indicating a year-on-year growth of 289 percent. The research report of China International Capital Corporation Limited (CICC) considers that the second quarter is the peak season of container sales and determines the year-round performance trend. In addition, the company might complete additional issuance of H shares in the third quarter and achieve periodical progress in the land development of Qianhai area, Shenzhen City before the fourth quarter. These might stimulate the price surge of the company’s stock in the future.
[Data Speaks]
○ ChiNext Board sees crazy surge, attentions to investment opportunity in stocks with low price
------
Looking back to the bullish market of the Small And Medium-Sized Enterprises Board and the ChiNext Board during 2009~2010 and 2013, most of the stocks with low price saw excellent surge. The main reason is that in the eyes of new investors, stocks with low price have more room to surge compared with stocks with high price. According to the statistics from XFA, by May 18, excluding factors like trading suspension, there is no company with stock price lower than 5 yuan per share among 380 companies on the ChiNext Board. Only the stock price of Zhejiang Sunflower Light Energy Science & Technology Limited Liability Company (300111.SZ) is lower than 10 yuan per share. Only 57 companies, accounting for 15 percent of all companies on the ChiNext Board, see their stock price lower than 20 yuan per share. The stock prices of Hebei Jianxin Chemical Co., Ltd. (300107.SZ) and Fujian Green Pine Co., Ltd. (300132.SZ) are around 10 yuan per share.
[Trading Alarms]
○ 12 new stocks including Xun You Network Technology start subscription on May 19
------
Sichuan Xun You Network Technology Co., Ltd. (300467.SZ) issues shares at 33.75 yuan per share with an up-limit per account of 4,000 shares; Nanxing Furniture Machinery & Equipment Co., Ltd. (002757.SZ) issues shares at 12.94 yuan per share with an up-limit per account of 10,500 shares; Zhejiang Huatong Pharmaceutical Co., Ltd. (002758.SZ) issues shares at 18.04 yuan per share with an up-limit per account of 5,500 shares; Guangdong Tonze Electric Co., Ltd. (002759.SZ) issues shares at 12.02 yuan per share with an up-limit per account of 9,500 shares; Shanghai Huaming Intelligent Terminal Equipment Co., Ltd. (300462.SZ) issues shares at 14.25 yuan per share with an up-limit per account of 5,000 shares; Sichuan Maker Biotechnology Co., Ltd. (300463.SZ) issues shares at 27.96 yuan per share with an up-limit per account of 18,500 shares; Saimo Electric Co., Ltd. (300466.SZ) issues shares at 10.25 yuan per share with an up-limit per account of 8,000 shares; Shenzhen Forms Syntron Information Co., Ltd. (300468.SZ) issues shares at 18.76 yuan per share with an up-limit per account of 10,000 shares; Harbin VITI Electronic Co., Ltd. (732023.SH) issues shares at 13.25 yuan per share with an up-limit per account of 8,000 shares; Shanghai Runda Medical Technology Co., Ltd. (732108.SH) issues shares at 17 yuan per share with an up-limit per account of 8,000 shares; Inly Media Co., Ltd. (732598.SH) issues shares at 7.2 yuan per share with an up-limit per account of 12,000 shares; Juneyao Airlines Co., Ltd. (732885.SH) issues shares at 11.18 yuan per share with an up-limit per account of 20,000 shares.
Maximum subscription totally needs 1.89 million yuan. Since OTC capital flows in continuously, the lot winning rate of this batch of new stocks might set new low record since the restart of IPO. Institutions recommend Xun You Network Technology whose main product is “Xun You web game accelerator”. Forms Syntron Information providing IT contracting service to banks is also recommended by institutions.
> SOEs reform document introduced, following reorganization trend expected
> NEA inspects new energy industries, PV industry to grow more rapidly
> Shenhuaxin to fully control Bada Landscape, UTour International Travel Service to build big data platform
> Tangrenshen to acquire Longhua Agriculture and Animal Husbandry Development, controlling shareholder of Guangdong Mingzhu to subscribe all private placement
[XFA Focus]
○ SOEs reform document introduced, following reorganization trend expected
------
The www.gov.cn released the ‘Opinions on Key Work in Deepening Economic System Reform in 2015’ on May 18, proposing 39 key reform tasks in eight aspects. In terms of ‘deepening enterprise reform’, the ‘Opinions’ firstly mentions the promotion of state-owned enterprises (SOEs) and state capital reform. It will introduce various supporting documents, prepare plans on the structural adjustment and reorganization of central enterprises and accelerate the pilot of companies with the state capital operation and investment.
Comment: The highlight of the ‘Opinions’ is the official introduction of the ‘1+N’ document system in the SOEs reform. In terms of the ranking of key tasks, the SOEs reform enjoys higher priority and a trend of mergers and acquisitions is expected in the future. China CSSC Holdings Limited (600150.SH), a company under the China State Shipbuilding Corporation (CSSC), announced the resign of the chairman. Guangzhou Shipyard International Co. Ltd. (600685.SH), another company under the CSSC, will change its name into CSSC Offshore & Marine Engineering (Group) Company Limited on May 25. Considering that the CSSC and China Shipbuilding Industry Corporation (CSIC) exchanged the chairmen in March for the first time, institutes are optimistic about the following capital operation. China National Building Materials Group Corporation (CNBM), another central enterprise, was listed as a pilot enterprise for the “four reforms” by the State-owned Assets Supervision and Administration Commission. Among the A-share companies under the CNBM, only Ruitai Materials Technology Co., Ltd. (002066.SZ) has not taken any moves this year.
[XFA Selection]
○ The new houses prices in 70 big and medium cities recovered for the first time in 10 months. Li Xunlei, Chief Economist at Haitong Securities Company Limited (06837.HK; 600837.SH), indicated that the inflection point of de-stocking in the real estate industry has emerged.
○ Shandong Province will pilot the transfer of state-owned capital at the provincial level into the social security funds. The first batch of 3.3 billion yuan was approved to transfer on May 18.
○The National Development and Reform Commission (NDRC) and the Ministry of Environmental Protection (MEP) will conduct a special inspection on the environmental power price across the country in the following three months and urge thermal power enterprises to cut emission.
○ The Shanghai Municipal Party Committee will convene a conference on May 25 to deliberate the plan on the Shanghai Technology Innovation Center. Local companies in the high-tech park are likely to benefit.
○ Shanghai Municipal Transportation Commission indicated on May 18 that it has established a working group with Chinese taxi-hailing apps Didi Dache and Kuaidi Dache. It is expected to introduce a pilot plan on tailored taxi services in one to two months.
○ COFCO Tunhe Co., Ltd. (600737.SH) announced that the overall listing is the future development strategy of the COFCO. It currently has no specific plan and timetable for the preparation for the overall listing.
[Industry Information]
○ NEA inspects new energy industries, PV industry to grow more rapidly
------
The National Energy Administration (NEA) frequently inspected new energy industries recently. Nur Bekri, head of the NEA, made a special inspection on the photovoltaic poverty relief and the development of new energy in Anhui Province on May 9. Bekri also conducted a special inspection on the development of hydropower in Yunnan Province on May 10 and 11. He required energy departments at various levels to make more targeted and pragmatic policies meeting the development requirements of the PV industry.
Comment: As a strategically emerging industry in China, the new energy has received strong supports from state policies. The excellent environment for the healthy development of the industry will facilitate the rapid growth of leading enterprises. The target of the installed PV capacity is far beyond the market expectation this year and the trend for the high growth of the industry is increasingly certain. In terms of listed companies, Sungrow Power Supply Co., Ltd. (300274.SZ) enjoys a leading market share in the domestic PV inverter industry. It raised funds to invest in the PV business through private placement. Shenzhen Rainbow Fine Chemical Industry Co., Ltd. (002256.SZ) plans to achieve the target of 1GW PV power installed capacity in three years. The project under construction and in reserve is more than 600MW currently.
○ China to initiate Greater Mekong regional investment plan with USD50 bln
------
XFA learnt on May 18 that China and other countries and regions are initiating a regional investment framework. The framework will be based on the Greater Mekong Subregion Cooperation platform and 50 billion U.S. dollars will be invested to support relevant construction in the transportation, energy, urban construction and education in the countries and regions in 2020. Among the 50 billion U.S. dollars, the Asian Development Bank will contribute 2 billion U.S. dollars. The remaining funds will come from the governments and commercial institutes of various countries and through the PPP model.
Comment: A majority of the projects in the investment plan are in line with the One Belt and One Road initiative proposed by China. Relevant plans made by Guangxi Zhuang Autonomous Region in the Greater Mekong Subregion Cooperation have passed the deliberation of experts. Relevant listed companies will benefit from the huge investment plan. Guangxi Wuzhou Communications Co., Ltd. (600368.SH) is engaged in the development of transportation construction in the region. Beibuwan Port Co., Ltd. (000582.SZ) is the biggest port in the southwestern China and its plan to acquire the port assets from its substantial shareholder through private placement has been passed by the China Securities Regulatory Commission (CSRC).
[Announcement Interpretation]
○ Shenhuaxin to fully control Bada Landscape with RMB1.66 bln
------
Beijing Shenhuaxin Co., Ltd. (000010.SZ) plans to acquire 100 percent equities of Jiangsu Bada Landscape Co., Ltd. with 1.66 billion yuan, among which, 51 percent of the transaction will be paid in cash and 49 percent will be paid by issuing 120 million shares at 6.92 yuan per share through private placement. The subject company is principally engaged in landscaping. The counterparty promises that the net profit of Bada Landscape will be no less than 166 million yuan, 231 million yuan and 330 million yuan, respectively, from 2015 to 2017.
○ UTour International Travel Service to raise RMB2.8 bln through private placement to build big data platform
------
Beijing UTour International Travel Service Co., Ltd. (002707.SZ) plans to raise 2.8 billion yuan by issuing 53.13 million shares at 52.7 yuan per share through private placement to invest in the life service platform of destinations, “Departure Cloud” big data management analysis platform, etc. Feng Bin, actual controller of the company, and Guo Hongbin, director of the company, will subscribe no less than 10 percent of the total private placement. The company’s stock price closed at 67.6 yuan per share before trading suspension.
○ Tangrenshen to acquire Longhua Agriculture and Animal Husbandry Development to expand industrial chain
------
Tangrenshen Group Co., Ltd. (002567.SZ) plans to acquire 90 percent equities of Hunan Longhua Agriculture and Animal Husbandry Development Co., Ltd. with 290 million yuan by issuing 22.46 million shares at 11.07 yuan per share through private placement and paying 43.875 million yuan in cash. It also plans to raise a supporting fund of 290 million yuan at no less than 12.37 yuan per share. The counterparty promises that the net profit of Longhua Agriculture and Animal Husbandry Development will be no less than 26.00 million yuan, 31.20 million yuan and 37.44 million yuan from 2015 to 2017. Longhua Agriculture and Animal Husbandry Development, as the key enterprise in pig breeding area in Hunan Province, form a complete pig industrial chain integrating live pig breeding, boar reproduction and commercial pig breeding.
○ Guangdong Mingzhu to invest in primary land development with RMB2 bln, controlling shareholder to subscribe all private placement
------
Guangdong Mingzhu Group Co., Ltd. (600382.SH) plans to raise 2 billion yuan by issuing 130 million shares at 15 yuan per share through private placement from Shenzhen Jinxin’an Investment Co., Ltd., its controlling shareholder, and two persons acting in concert. The raised fund will be all invested in the primary land development of Southern New Town Phase I in Xinning City and some public facilities construction projects.
○ Xining Special Steel to raise RMB6.3 bln through private placement to pay off debts
------
Xining Special Steel Co., Ltd. (600117.SH) plans to raise 6.36 billion yuan by issuing 1.1 billion shares at 5.76 yuan per share from four companies under the State-owned Assets Supervision and Administration Commission (SASAC) of Qinghai Province including Qinghai Development & Investment Co., Ltd., Qinghai Electromechanical Co., Ltd., Qinghai Materials Industry Group Corporation and Qinghai Motor Transport Group Co., Ltd., the employee shareholding plan, Guohua Life Insurance Co., Ltd., etc. to pay off bank loans. The maximum subscription for Qinghai Development & Investment, Guohua Life Insurance and the employee shareholding plan is 1.44 billion yuan, 576 million yuan and 22.46 million yuan, respectively.
○ Calxon to raise RMB3.9 bln through private placement to quicken strategic transformation
------
China Calxon Group Co., Ltd. (000918.SZ) plans to raise 3.9 billion yuan by issuing 627 million shares at 6.22 yuan per share through private placement, among which, 2.34 billion yuan will be invested in the “City Living Room” project, 400 million yuan will be used in Hangzhou Changhe Project and the rest 1.16 billion yuan will be used to pay off borrowings from financial institutions.
Comment: “City Living Room” integrates governmental service, public service, experiential commerce, F&B/entertainment service, O2O commerce, etc. together. Upon completion, it helps the company to achieve its strategic transformation goal towards new-type urban local life service platform provider.
○ Huangshan Novel bought to the 5 pct limit through secondary market acquisition by funds managed by Song Xiangqian
------
Huangshan Novel Co., Ltd. (002014.SZ) discloses that by May 14, Wudaokou Innovation (Tianjin) Equity Investment Fund Partnership Enterprise and Jiahua Yuanlong (Tianjin) Equity Investment Fund Partnership Enterprise, the manager of both enterprises is Song Xiangqian, respectively hold 7.53 million shares and 7.11 million shares, accounting for 5 percent of the company’s total share capital and reaching the 5 percent limit through secondary market acquisition. Materials show that the above two partnership enterprise continuously overweight the company’s shares from Feb. to May this year with the purpose of investing in secondary market.
[Companies Hotspot]
○ Rural material e-commerce platform under controlling shareholder of Kingenta Ecological Engineering starts trial operation
------
“Nongshang No.1”, a rural material e-commerce platform under the controlling shareholder of Kingenta Ecological Engineering Group Co., Ltd. (002470.SZ), starts trial operation on May 18. The platform gathers entire serial products of more than 10 rural material brands, develops financial business including financial payment, petty loan, etc. and aims to build the largest rural material e-commerce platform in China and achieve a revenue of 10 billion yuan in the future. Kingenta is the only listed platform under its controlling shareholder and has started exploration in rural material e-commerce area.
[Trading Trends]
○ CIMC bought through three institutional seats
------
The trading volume ranking list on May 18 shows that China International Marine Containers (Group) Co., Ltd. (CIMC) (000039.SZ; 02039.HK) was bought through three institutional seats with a total of 140 million yuan, accounting for 8.5 percent of its intraday turnover.
Comment: Thanks to the increasing demand on containers, CIMC achieves a net profit of around 500 million yuan in the first quarter, indicating a year-on-year growth of 289 percent. The research report of China International Capital Corporation Limited (CICC) considers that the second quarter is the peak season of container sales and determines the year-round performance trend. In addition, the company might complete additional issuance of H shares in the third quarter and achieve periodical progress in the land development of Qianhai area, Shenzhen City before the fourth quarter. These might stimulate the price surge of the company’s stock in the future.
[Data Speaks]
○ ChiNext Board sees crazy surge, attentions to investment opportunity in stocks with low price
------
Looking back to the bullish market of the Small And Medium-Sized Enterprises Board and the ChiNext Board during 2009~2010 and 2013, most of the stocks with low price saw excellent surge. The main reason is that in the eyes of new investors, stocks with low price have more room to surge compared with stocks with high price. According to the statistics from XFA, by May 18, excluding factors like trading suspension, there is no company with stock price lower than 5 yuan per share among 380 companies on the ChiNext Board. Only the stock price of Zhejiang Sunflower Light Energy Science & Technology Limited Liability Company (300111.SZ) is lower than 10 yuan per share. Only 57 companies, accounting for 15 percent of all companies on the ChiNext Board, see their stock price lower than 20 yuan per share. The stock prices of Hebei Jianxin Chemical Co., Ltd. (300107.SZ) and Fujian Green Pine Co., Ltd. (300132.SZ) are around 10 yuan per share.
[Trading Alarms]
○ 12 new stocks including Xun You Network Technology start subscription on May 19
------
Sichuan Xun You Network Technology Co., Ltd. (300467.SZ) issues shares at 33.75 yuan per share with an up-limit per account of 4,000 shares; Nanxing Furniture Machinery & Equipment Co., Ltd. (002757.SZ) issues shares at 12.94 yuan per share with an up-limit per account of 10,500 shares; Zhejiang Huatong Pharmaceutical Co., Ltd. (002758.SZ) issues shares at 18.04 yuan per share with an up-limit per account of 5,500 shares; Guangdong Tonze Electric Co., Ltd. (002759.SZ) issues shares at 12.02 yuan per share with an up-limit per account of 9,500 shares; Shanghai Huaming Intelligent Terminal Equipment Co., Ltd. (300462.SZ) issues shares at 14.25 yuan per share with an up-limit per account of 5,000 shares; Sichuan Maker Biotechnology Co., Ltd. (300463.SZ) issues shares at 27.96 yuan per share with an up-limit per account of 18,500 shares; Saimo Electric Co., Ltd. (300466.SZ) issues shares at 10.25 yuan per share with an up-limit per account of 8,000 shares; Shenzhen Forms Syntron Information Co., Ltd. (300468.SZ) issues shares at 18.76 yuan per share with an up-limit per account of 10,000 shares; Harbin VITI Electronic Co., Ltd. (732023.SH) issues shares at 13.25 yuan per share with an up-limit per account of 8,000 shares; Shanghai Runda Medical Technology Co., Ltd. (732108.SH) issues shares at 17 yuan per share with an up-limit per account of 8,000 shares; Inly Media Co., Ltd. (732598.SH) issues shares at 7.2 yuan per share with an up-limit per account of 12,000 shares; Juneyao Airlines Co., Ltd. (732885.SH) issues shares at 11.18 yuan per share with an up-limit per account of 20,000 shares.
Maximum subscription totally needs 1.89 million yuan. Since OTC capital flows in continuously, the lot winning rate of this batch of new stocks might set new low record since the restart of IPO. Institutions recommend Xun You Network Technology whose main product is “Xun You web game accelerator”. Forms Syntron Information providing IT contracting service to banks is also recommended by institutions.
Latest comments