[Today’s Guide]
> Chinese Industry 4.0 released, intelligent manufacturing to enjoy priority
> Gourmet powder price rises again, data center market demand surges
> Guomai Technologies to develop Internet of things, Hakim Information Technology to expand to Internet finance
> Sinosteel Engineering & Technology to supplement working capital through private placement, East China Engineering Science and Technology bought by Dragon Life Insurance to 5 pct limit
[XFA Focus]
○ Chinese Industry 4.0 released, intelligent manufacturing to enjoy priority
------
The www.gov.cn unveiled the ‘Made in China 2025’, indicating that the manufacturing industry is the foundation of China, the ace in rejuvenating China and the basis of a strong China. It identified nine tasks in 10 key sectors as priorities as well as five major projects, including establishing a manufacturing innovation center, intelligent manufacturing, strengthening the industrial base, enforcing green manufacturing and improving innovation in high-end equipment manufacturing.
Comment: The plan is dubbed as the Chinese version of ‘Industry 4.0’. Officials at the Ministry of Industry and Information Technology (MIIT) said that intelligent manufacturing is crucial in the new round of industrial reform. Securities companies interviewed believe that more supporting policies on intelligent manufacturing will be introduced in the following five years. More investment opportunities will arise in automatic control devices, industrial robots, numerical control machines and intelligent terminal products. Many listed companies have adjusted their development strategies towards intelligent manufacturing. Shenyang Machine Tool Co., Ltd. (000410.SZ) has released the i5 strategy on transforming from the traditional machine manufacturing into an industrial services provider. Guangzhou Guangri Stock Co., Ltd. (600894.SH) enjiys sufficient cash reserve. Institutes are optimistic that it will develop intelligent manufacturing after it acquired equities of Guangzhou Songxing Electrics Co., Ltd. Hubei Sanfeng Intelligent Conveying Equipment Co., Ltd. (300276.SZ) newly added automatic storage, industrial robots and other projects.
[XFA Selection]
○ The sample stocks of the SZSE Component Index expands from 40 to 500 on May 20 and the market value of sample stocks increased by 2.7 times.
○ The settlement and sales of foreign exchange in April shows that cross-border capitals continues to flow out. Institutes believe that it is mainly due to the reduction of USD debts by Chinese enterprises.
○ The 2015 World Hydropower Congress was convened in China for the first time on May 19. Officials of the National Energy Administration (NEA) indicated that Chinese hydropower enjoys excellent development opportunities.
○ Shanghai Huarui Bank, sponsored by Juneyao Group and Shanghai Metersbonwe Fashion Co., Ltd., will open on May 23. The China Banking Regulatory Commission (CBRC) will make more inspections on privately-owned banks this week.
○ The Enchanted Storybook Castle, a marking landscape at the Shanghai Disney Resort, completed construction on May 19, representing a milestone in the development and construction of the resort.
[Industry Information]
○ Gourmet powder price rises again, leading enterprises benefit from booming industry
------
XFA learnt that the price of gourmet powder was raised for the fourth time in the year with an increase of 400 to 600 yuan per ton or a maximum of nearly 7 percent, representing a total growth of 15 percent from the end of 2014.
Comment: The consolidation of the gourmet powder industry started in 2011 and wrapped up in end-2014. Medium and small enterprises have exited from the market due to heavy losses. The top three enterprises in the industry account up to 75 percent of the market share. With the improvement of the industry concentration ratio, leading enterprises will increasingly improve their bargaining power and a new round of booming industry will initiate. In terms of listed companies, Meihua Holdings Group Co., Ltd. (600873.SH) is under full production with a capacity of 530,000 tons. Its total capacity will increase to 800,000 tons after it acquired Ningxia Eppen Biotech Co. Ltd. The revenue of Henan Lotus Flower Gourmet Powder Co., Ltd. (600186.SH) from the gourmet powder business accounts for 69 percent of its total revenue in 2014.
○ Chongqing joins Tencent in promoting Internet-based industries, investment in data center to enjoy priority
------
Tencent Holdings Limited (00700.HK) and the Chongqing New North Zone entered into a cooperation agreement on group innovation space on May 19. Both parties will strive to invest no less than 10 billion yuan in three years to promote the development of the ‘Internet Plus’ in Chongqing Municipality and achieve a comprehensive industrial scale of 200 billion yuan. The data center project of Tencent in Chongqing will initiate construction in June.
Comment: China id actively promoting the ‘Internet Plus’ campaign. The Internet of Things, the integration of the telecommunications network, the cable TV network and the Internet, cloud computing and other new technology and demands will boost the demand in the data center market. Institutes estimate that the data center market in China will keep a double-digit growth and will reach over 100 billion yuan in 2016. Among listed companies, Shanghai Baosight Software Co., Ltd. (600845.SH) proposes to raise 1.18 billion yuan in the construction of the phase III of the Baozhiyun Internet Data Center. Shenzhen Dvision Video Communications Co., Ltd. (300167.SZ) is building a large data center in Erdos City.
[Announcement Interpretation]
○ Guomai Technologies to raise RMB1.5 bln through private placement to develop Internet of things big data
------
Guomai Technologies, Inc. (002093.SZ) plans to raise 1.5 billion yuan by issuing 130 million shares at 11.75 yuan per share to Guomai Group, etc., among which, 800 million yuan will be invested in the big data operation platform of Guomai Internet of things, 500 million yuan will be invested in the construction of Guomai Cloud Health Medical Center and the rest will be used to supplement working capital. The subscription of Guomai Group in cash will be no less than 150 million yuan.
○ Hakim Information Technology to expand to Internet finance with RMB2.4 bln through private placement
------
Hakim Information Technology Co., Ltd. (300300.SZ) plans to raise 2.4 billion yuan by issuing 65.13 million shares at 36.85 yuan per share, among which, 1.7 billion yuan will be invested in the construction of intelligent-city-based Internet finance platform and 700 million will be used to supplement working capital. Wu Yan, controlling shareholder and chairman of the company, will subscribe 27.14 million shares with 1 billion yuan, accounting for 40 percent of the total private placement.
Comment: Private placement helps the company to transform from traditional contractor of “Intelligent City” orders to first-class comprehensive service provider.
○ Sinosteel Engineering & Technology to raise RMB2.6 bln through private placement to supplement working capital
------
Sinosteel Engineering & Technology Co., Ltd. (000928.SZ) plans to raise 2.6 billion yuan by issuing 180 million shares at 14.31 yuan per share to Sinosteel Asset Management Co., Ltd., China Aviation Xiangrui Aggregate Asset Management Plan, Hotland Innovation Asset Management Co., Ltd. etc. to supplement working capital. Sinosteel Asset Management is a fully-owned subsidiary of Sinosteel Group, the company’s controlling shareholder. The mandatory of Xiangrui Plan is the company’s chairman, supervisor and senior management and the senior management of the company’s subordinate enterprises. Hotland Innovation Asset Management is a publicly-offered fund under Shenzhen Capital Group Co., Ltd.
○ East China Engineering Science and Technology bought by Dragon Life Insurance to 5 pct limit
------
East China Engineering Science and Technology Co., Ltd. (002140.SZ) announced on May 18 that Dragon Life Insurance Co. Ltd. bought 0.02 percent of its equities again at an average price of 25.08 yuan per share, reaching a total shareholding proportion of 5.02 percent. Dragon Life Insurance bought the shares of China Television Media Co., Ltd. (600088.SH) with 300 million yuan through secondary market acquisition to the 5 percent limit in April this year.
○ Mainstreets Investment to acquire equities of Qingdao Compin Railway to develop components of high-speed rail
------
Beijing Mainstreets Investment Group Corporation (000609.SZ) plans to acquire 49 percent equities of Qingdao Compin Railway Grp. Ltd. with 98.00 million yuan. Qingdao Compin Railway is an enterprise engaged in the manufacturing and sales of special glass fiber reinforced plastic components of rail vehicles and it has long-term close cooperation with CSR Corporation Limited.
Comment: The company originally plans to acquire 60 percent equities of Qingdao Compin Railway through private placement, but the plan was suspended later. It finally succeeds this time.
[Trading Trends]
○ Shanghai International Airport bought by overseas capital to the limit
------
Hong Kong Exchanges and Clearing Limited (HKEx) announced on May 19 that it received notice from Shanghai Stock Exchange saying that since the overseas shareholding proportion of Shanghai International Airport Co., Ltd. (600009.SH) exceeds 28 percent, the Shanghai-Hong Kong Stock Connect program will suspend the buy orders of Shanghai International Airport from May 19 but sell orders will still be accepted, according to the rules of exchange.
Comment: Shanghai International Airport becomes the first stock to see suspension of buy orders resulted by that overseas shareholding proportion exceeds limit since the opening of the Shanghai-Hong Kong Stock Connect program. Overseas capital prefers quality blue-chip companies with stable investment performance, high dividend and simple profit model.
[Trading Alarms]
○ 7 new stocks including Global Infotech start subscription on May 20
------
Global Infotech Co., Ltd. (300465.SZ) issues shares at 11.26 yuan per share with an up-limit per account of 12,000 shares; Anhui Yingjia Distillery Co., Ltd. (732198.SH) issues shares at 11.8 yuan per share with an up-limit per account of 24,000 shares; Zhejiang Huatie Construction Safety Science and Technology Co., Ltd. (732300.SH) issues shares at 8.22 yuan per share with an up-limit per account of 20,000 shares; Zhejiang Weiming Environment Protection Co., Ltd. (732568.SH) issues shares at 11.27 yuan per share with an up-limit per account of 13,000 shares; Lionco Pharmaceutical Group Co., Ltd. (732669.SH) issues shares at 11.7 yuan per share with an up-limit per account of 26,000 shares; Hangzhou Youngsun Intelligent Equipment Co., Ltd. (732901.SH) issues shares at 15.81 yuan per share with an up-limit per account of 10,000 shares; Shanghai Golden Bridge InfoTech Co., Ltd. (732918.SH) issues shares at 9.5 yuan per share with an up-limit per account of 8,000 shares.
Maximum subscription totally needs 1.27 million yuan. Institutions recommend Global Infotech providing financial IT solutions as first choice.
> Chinese Industry 4.0 released, intelligent manufacturing to enjoy priority
> Gourmet powder price rises again, data center market demand surges
> Guomai Technologies to develop Internet of things, Hakim Information Technology to expand to Internet finance
> Sinosteel Engineering & Technology to supplement working capital through private placement, East China Engineering Science and Technology bought by Dragon Life Insurance to 5 pct limit
[XFA Focus]
○ Chinese Industry 4.0 released, intelligent manufacturing to enjoy priority
------
The www.gov.cn unveiled the ‘Made in China 2025’, indicating that the manufacturing industry is the foundation of China, the ace in rejuvenating China and the basis of a strong China. It identified nine tasks in 10 key sectors as priorities as well as five major projects, including establishing a manufacturing innovation center, intelligent manufacturing, strengthening the industrial base, enforcing green manufacturing and improving innovation in high-end equipment manufacturing.
Comment: The plan is dubbed as the Chinese version of ‘Industry 4.0’. Officials at the Ministry of Industry and Information Technology (MIIT) said that intelligent manufacturing is crucial in the new round of industrial reform. Securities companies interviewed believe that more supporting policies on intelligent manufacturing will be introduced in the following five years. More investment opportunities will arise in automatic control devices, industrial robots, numerical control machines and intelligent terminal products. Many listed companies have adjusted their development strategies towards intelligent manufacturing. Shenyang Machine Tool Co., Ltd. (000410.SZ) has released the i5 strategy on transforming from the traditional machine manufacturing into an industrial services provider. Guangzhou Guangri Stock Co., Ltd. (600894.SH) enjiys sufficient cash reserve. Institutes are optimistic that it will develop intelligent manufacturing after it acquired equities of Guangzhou Songxing Electrics Co., Ltd. Hubei Sanfeng Intelligent Conveying Equipment Co., Ltd. (300276.SZ) newly added automatic storage, industrial robots and other projects.
[XFA Selection]
○ The sample stocks of the SZSE Component Index expands from 40 to 500 on May 20 and the market value of sample stocks increased by 2.7 times.
○ The settlement and sales of foreign exchange in April shows that cross-border capitals continues to flow out. Institutes believe that it is mainly due to the reduction of USD debts by Chinese enterprises.
○ The 2015 World Hydropower Congress was convened in China for the first time on May 19. Officials of the National Energy Administration (NEA) indicated that Chinese hydropower enjoys excellent development opportunities.
○ Shanghai Huarui Bank, sponsored by Juneyao Group and Shanghai Metersbonwe Fashion Co., Ltd., will open on May 23. The China Banking Regulatory Commission (CBRC) will make more inspections on privately-owned banks this week.
○ The Enchanted Storybook Castle, a marking landscape at the Shanghai Disney Resort, completed construction on May 19, representing a milestone in the development and construction of the resort.
[Industry Information]
○ Gourmet powder price rises again, leading enterprises benefit from booming industry
------
XFA learnt that the price of gourmet powder was raised for the fourth time in the year with an increase of 400 to 600 yuan per ton or a maximum of nearly 7 percent, representing a total growth of 15 percent from the end of 2014.
Comment: The consolidation of the gourmet powder industry started in 2011 and wrapped up in end-2014. Medium and small enterprises have exited from the market due to heavy losses. The top three enterprises in the industry account up to 75 percent of the market share. With the improvement of the industry concentration ratio, leading enterprises will increasingly improve their bargaining power and a new round of booming industry will initiate. In terms of listed companies, Meihua Holdings Group Co., Ltd. (600873.SH) is under full production with a capacity of 530,000 tons. Its total capacity will increase to 800,000 tons after it acquired Ningxia Eppen Biotech Co. Ltd. The revenue of Henan Lotus Flower Gourmet Powder Co., Ltd. (600186.SH) from the gourmet powder business accounts for 69 percent of its total revenue in 2014.
○ Chongqing joins Tencent in promoting Internet-based industries, investment in data center to enjoy priority
------
Tencent Holdings Limited (00700.HK) and the Chongqing New North Zone entered into a cooperation agreement on group innovation space on May 19. Both parties will strive to invest no less than 10 billion yuan in three years to promote the development of the ‘Internet Plus’ in Chongqing Municipality and achieve a comprehensive industrial scale of 200 billion yuan. The data center project of Tencent in Chongqing will initiate construction in June.
Comment: China id actively promoting the ‘Internet Plus’ campaign. The Internet of Things, the integration of the telecommunications network, the cable TV network and the Internet, cloud computing and other new technology and demands will boost the demand in the data center market. Institutes estimate that the data center market in China will keep a double-digit growth and will reach over 100 billion yuan in 2016. Among listed companies, Shanghai Baosight Software Co., Ltd. (600845.SH) proposes to raise 1.18 billion yuan in the construction of the phase III of the Baozhiyun Internet Data Center. Shenzhen Dvision Video Communications Co., Ltd. (300167.SZ) is building a large data center in Erdos City.
[Announcement Interpretation]
○ Guomai Technologies to raise RMB1.5 bln through private placement to develop Internet of things big data
------
Guomai Technologies, Inc. (002093.SZ) plans to raise 1.5 billion yuan by issuing 130 million shares at 11.75 yuan per share to Guomai Group, etc., among which, 800 million yuan will be invested in the big data operation platform of Guomai Internet of things, 500 million yuan will be invested in the construction of Guomai Cloud Health Medical Center and the rest will be used to supplement working capital. The subscription of Guomai Group in cash will be no less than 150 million yuan.
○ Hakim Information Technology to expand to Internet finance with RMB2.4 bln through private placement
------
Hakim Information Technology Co., Ltd. (300300.SZ) plans to raise 2.4 billion yuan by issuing 65.13 million shares at 36.85 yuan per share, among which, 1.7 billion yuan will be invested in the construction of intelligent-city-based Internet finance platform and 700 million will be used to supplement working capital. Wu Yan, controlling shareholder and chairman of the company, will subscribe 27.14 million shares with 1 billion yuan, accounting for 40 percent of the total private placement.
Comment: Private placement helps the company to transform from traditional contractor of “Intelligent City” orders to first-class comprehensive service provider.
○ Sinosteel Engineering & Technology to raise RMB2.6 bln through private placement to supplement working capital
------
Sinosteel Engineering & Technology Co., Ltd. (000928.SZ) plans to raise 2.6 billion yuan by issuing 180 million shares at 14.31 yuan per share to Sinosteel Asset Management Co., Ltd., China Aviation Xiangrui Aggregate Asset Management Plan, Hotland Innovation Asset Management Co., Ltd. etc. to supplement working capital. Sinosteel Asset Management is a fully-owned subsidiary of Sinosteel Group, the company’s controlling shareholder. The mandatory of Xiangrui Plan is the company’s chairman, supervisor and senior management and the senior management of the company’s subordinate enterprises. Hotland Innovation Asset Management is a publicly-offered fund under Shenzhen Capital Group Co., Ltd.
○ East China Engineering Science and Technology bought by Dragon Life Insurance to 5 pct limit
------
East China Engineering Science and Technology Co., Ltd. (002140.SZ) announced on May 18 that Dragon Life Insurance Co. Ltd. bought 0.02 percent of its equities again at an average price of 25.08 yuan per share, reaching a total shareholding proportion of 5.02 percent. Dragon Life Insurance bought the shares of China Television Media Co., Ltd. (600088.SH) with 300 million yuan through secondary market acquisition to the 5 percent limit in April this year.
○ Mainstreets Investment to acquire equities of Qingdao Compin Railway to develop components of high-speed rail
------
Beijing Mainstreets Investment Group Corporation (000609.SZ) plans to acquire 49 percent equities of Qingdao Compin Railway Grp. Ltd. with 98.00 million yuan. Qingdao Compin Railway is an enterprise engaged in the manufacturing and sales of special glass fiber reinforced plastic components of rail vehicles and it has long-term close cooperation with CSR Corporation Limited.
Comment: The company originally plans to acquire 60 percent equities of Qingdao Compin Railway through private placement, but the plan was suspended later. It finally succeeds this time.
[Trading Trends]
○ Shanghai International Airport bought by overseas capital to the limit
------
Hong Kong Exchanges and Clearing Limited (HKEx) announced on May 19 that it received notice from Shanghai Stock Exchange saying that since the overseas shareholding proportion of Shanghai International Airport Co., Ltd. (600009.SH) exceeds 28 percent, the Shanghai-Hong Kong Stock Connect program will suspend the buy orders of Shanghai International Airport from May 19 but sell orders will still be accepted, according to the rules of exchange.
Comment: Shanghai International Airport becomes the first stock to see suspension of buy orders resulted by that overseas shareholding proportion exceeds limit since the opening of the Shanghai-Hong Kong Stock Connect program. Overseas capital prefers quality blue-chip companies with stable investment performance, high dividend and simple profit model.
[Trading Alarms]
○ 7 new stocks including Global Infotech start subscription on May 20
------
Global Infotech Co., Ltd. (300465.SZ) issues shares at 11.26 yuan per share with an up-limit per account of 12,000 shares; Anhui Yingjia Distillery Co., Ltd. (732198.SH) issues shares at 11.8 yuan per share with an up-limit per account of 24,000 shares; Zhejiang Huatie Construction Safety Science and Technology Co., Ltd. (732300.SH) issues shares at 8.22 yuan per share with an up-limit per account of 20,000 shares; Zhejiang Weiming Environment Protection Co., Ltd. (732568.SH) issues shares at 11.27 yuan per share with an up-limit per account of 13,000 shares; Lionco Pharmaceutical Group Co., Ltd. (732669.SH) issues shares at 11.7 yuan per share with an up-limit per account of 26,000 shares; Hangzhou Youngsun Intelligent Equipment Co., Ltd. (732901.SH) issues shares at 15.81 yuan per share with an up-limit per account of 10,000 shares; Shanghai Golden Bridge InfoTech Co., Ltd. (732918.SH) issues shares at 9.5 yuan per share with an up-limit per account of 8,000 shares.
Maximum subscription totally needs 1.27 million yuan. Institutions recommend Global Infotech providing financial IT solutions as first choice.
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