[Today’s Guide]
>Fund of tens of billions of yuan to consolidate resources, gold cooperation to highlight One Belt and One Road
>New regulatory moves on OTC financing to urge implementation, capital to have limited actual effects
>Online education to develop rapidly, domestic urea price hit new high
>United Electronics to achieve backdoor listing through China-Hemp Industrial Investment, Youbo Phar. to achieve back-door listing via Jiuzhitang
[XFA Focus]
○Fund of tens of billions of yuan to consolidate resources, gold cooperation to highlight One Belt and One Road
------
The promotion of the gold development in the ‘One Belt and One Road’ initiatives and the launching ceremony of the Silk Road gold fund was held in Xi’an City, Shaanxi Province on May 22. The total size of the fund will be 100 billion yuan. The fund will consolidate the gold industrial chain along the Silk Road and facilitate the technology and brand export to gold exploration in regions along the Silk Road after the establishment.
Comment: China’s gold reserve accounts less than 5 percent of the global reserve, which is insufficient for domestic gold consumption. Countries along the Silk Road, such as Uzbekistan and Kazakhstan ranking fourth and ninth in proved gold reserve, enjoy abundant resources. The Chairman of the Shanghai Gold Exchange said that these countries lag behind China in mining and refining technologies and are urgent to cooperate with China. The coverage of the gold cooperation and development mechanism by the One Belt and One Road strategic plan will expand the substance of the strategy and facilitate the implementation of the strategy of RMB internationalization. In terms of listed companies, the substantial shareholder of Zhongjin Gold Corp.,Ltd. (600489.SH) has signed a cooperation framework agreement with the biggest gold producer in Russia. The substantial shareholder of Shandong Gold Mining Co.,Ltd. (600547.SH) is conducting mergers and acquisitions in Mongolia and Kazakhstan. Western Region Gold Co.,Ltd. (601069.SH) indicated in its annual report that Xinjiang Uygur Autonomous Region is adjacent to the Central Asia and enjoys geographical advantages in resources integration.
[Trading Trends]
○New regulatory moves on OTC financing to urge implementation, capital to have limited actual effects
------
The regulatory measures on the umbrella trust and the HOMS of Hundsun Technologies Inc. (600570.SH) introduce by regulatory authorities attracted market attention on the weekend. XFA learnt from securities companies that it is not the beginning of regulatory moves. It is the following regulation after the China Securities Regulatory Commission (CSRC) issued a document on April 17, prohibiting the participation in the OTC stock financing and the umbrella trust in any forms. According to the research of institutes, securities companies have not learnt information about stricter inspections on financing and even requiring clients closing positions by regulatory authorities.
Comment: The regulatory authorities have set limitation on OTC financing in late-April and the effect on the market has been gradually unleashing. The new regulatory measures are to urge securities companies with slow moves to implement the regulatory requirements in advance. The incident may affect the market sentiment in short term, but it has limited actual effect on the capital.
[XFA Selection]
○The mutual recognition of funds between Hong Kong and the Mainland will initiate on July 1. Institutes believe that it will attract more increment capital into the market.
○The ‘special law enforcement by the CSRC in 2015’ investigated 12 cases, targeting at six market manipulations.
○The China Securities Regulatory Commission (CSRC) will streamline the procedures for stocks issuance and speed up in examination. The IPO of 23 enterprises, including China National Nuclear Power Co., Ltd., has been approved.
○The General Office of the State Council issued a document on May 22, requiring promoting the PPP model in water conservancy, environmental protection, medical care and other public service industries.
○The public offering of H shares by Huatai Securities Co., Ltd. (601688.SH) recorded an oversubscription of about 280 times. It is expected to be priced at the upper limit of the issue price.
○Ctrip.com International, Ltd. (NASDAQ: CTRP) buys the stake of eLong, Inc. (NASDAQ: LONG) and becomes its biggest shareholder. The price war in online tourism is expected to reduce.
[Industry Information]
○Informationizationto promote fair education, online education enjoys rosy prospects
------
The International Conference on ICT and Post-2015 Education was convened on May 23 in Qingdao City. Chinese President Xi Jinping sent a congratulatory letter, emphasizing the establishment of an Internet-based, digitalized, individualized and life-long education system. It shall unremittingly promote the educational informationization and expand the coverage of high-end educational resources with the application of information technologies.
Comment: The educational informationization will break the time and space limits in education and promote fair education. The informationization model represented by online education will see rapid development, which enjoys a market value of tens of millions of yuan. In terms of listed companies, Shanghai XinNanyang Co.,Ltd. (600661.SH) will speed up in expanding the industrial chain through the establishment of funds for investments in education. Hailun Piano Co.,Ltd. (300329.SZ) plans to raise about 200 million yuan in establishing an Internet-based platform for art education.
○Booming demand and low inventory drive urea price high
------
XFA learnt that many urea enterprises raised the ex-factory prices by 10 yuan to 20 yuan per ton on May 22. The urea price has hiked nearly 8 percent since late-April.
Comment: The improvement in the domestic urea supply-demand pattern, the increasing agricultural demands as well as the cancellation of peak season windows in the new tariff policies for fertilizers in 2015 will further improve the demand for the export of urea. Insiders believe that driven by the relatively low market inventory and export demand, the urea price will be driven high in short term. In term of listed companies, Luxi Chemical Group Co.,Ltd. (000830.SZ) owns a urea capacity of 1.85 million tons. Hubei Yihua Chemical Industry Co.,Ltd. (000422.SZ) plans to produce 3.20 million tons of urea in 2015.
[Announcement Interpretation]
○United Electronics to achieve backdoor listing through China-Hemp Industrial Investment
------
China-Hemp Industrial Investment Co., Ltd. (002036.SZ) proposes to exchange its current assets of 615 million yuan into 100 percent equities of United Electronics Co., Ltd. Jiangxi priced at 2.85 billion yuan, of which 2.36 billion yuan will be paid by issuing shares at 7.65 yuan per share through private placement. The shortfall of 125 million yuan between the assets exchanged out and the remaining price will be supplemented by the second largest shareholder of United Electronics. The actual controller of the company will be Chen Wei and Han Shenglong and United Electronics will achieve backdoor listing after the transaction.
The company also plans to raise a supporting fund of 200 million yuan by issuing shares at 7.65 yuan per share through private placement. The proceeds will be invested in the industrialization of high-resolution phone lens with an annual capacity of 60 million items. United Electronics is providing high-quality optical lens to intelligent wearable devices and provide one-stop solutions to touch displays for mobile intelligent terminal. Based on the commitment on performance, the net profit after extraordinary items of United Electronics from 2015 to 2017 will be 190 million yuan, 250 million yuan and 320 million yuan, respectively.
○Youbo Phar. to achieve back-door listing via Jiuzhitang with RMB6.5 bln
------
Jiuzhitang Co., Ltd. (000989.SZ) plans to acquire 100 percent equities of Mudanjiang Youbo Pharmaceutical Co., Ltd. with 6.5 billion yuan by issuing shares at 14.22 yuan per share through private placement to Li Zhenguo, etc. Meanwhile, Jiuzhitang plans to transfer 83.50 million shares at 18 yuan per share to Li Zhenguo. The two conditions are mutually premise. Upon completion, Li Zhenguo will act as the new actual controller of Jiuzhitang; Youbo Phar. will achieve back-door listing; the shareholding of Jiuzhitang will be decreased to 4.84 percent, ranking as the tenth largest shareholder.
Just like Jiuzhitang, Youbo Phar. is involved in traditional Chinese medicine industry. Its main product is Shuxuetong injection. The net profit of Youbo Phar. from 2012 to 2014 was 323 million yuan, 364 million yuan and 403 million yuan, respectively. Li Zhenguo, etc. will make specific commitment to the future profit of Youbo Phar.
○New Jialian Electronics to fully control Bus-Online with RMB1.7 bln
------
Zhejiang New Jialian Electronics Co., Ltd. (002188.SZ) plans to acquire 100 percent equities of Bus-Online Technology Co., Ltd. with 1,685 million yuan by issuing 115 million shares at 11.86 yuan per share and paying 326 million yuan in cash. The estimated value-added ratio exceeds 25 times. The company also plans to raise a supporting fund of 344 million yuan at the same offering price through private placement from controlling shareholder.
The counterparty promises that the net profit of Bus-Online from 2015 to 2017 will be no less than 90 million yuan, 140 million yuan and 200 million yuan, respectively. Bus-Online is principally engaged in the operation of mobile television media advertisement and mobile Internet marketing business.
○Aerospace Communications to control Zhihui Haipai to expand to Internet hardware
------
Aerospace Communications Holdings Group Co., Ltd. (600677.SH) plans to acquire 51 percent equities of Zhihui Haipai Technology Co., Ltd. and 36.93 percent equities of Jiangsu Jiecheng Vehicle Electronics Information Engineering Company with 1,238 million yuan by issuing shares at 15.67 yuan per share through private placement. Meanwhile, the company plans to raise a supporting fund of 410 million yuan from China Aerospace Science & Industry Corp. and Tibet ZiguangChunhua Investment Co., Ltd. at the same offering price to increase capital in Zhihui Haipai, etc.
Zhihui Haipai promises that its net profit from 2015 to 2017 will be no less than 200 million yuan, 250 million yuan and 300 million yuan, respectively. Upon completion, the shareholding of the company in Jiangsu Jiecheng will climb to 91.8 percent and it will expand to intelligent terminal, vehicular audio system, wearable devices and smart home business by acquiring Zhihui Haipai.
○Jinghua Phar. to indirectly acquire 100 percent equities of Nantong Dongli to develop pharmaceutical chemicals
------
Nantong Jinghua Pharmaceutical Co., Ltd. (002349.SZ) plans to indirectly acquire 100 percent equities of Nantong Dongli Chemical Co., Ltd. with 690 million yuan by issuing shares at 26.38 yuan per share through private placement and in cash. Meanwhile, it plans to raise a supporting fund of 78.00 million yuan at 29.51 yuan per share from Nantong Industries Holding Group Co., Ltd., its substantial shareholder. Methylhydrazine, the main product of Nantong Dongli, is raw material for pharmacy. The subject company promises that its net profit from 2015 to 2017 will be no less than 52.00 million yuan, 62.40 million yuan and 77.38 million yuan, respectively.
○Zhongtian Technology to acquire asset from substantial shareholder through private placement to add stakes in main business
------
Jiangsu Zhongtian Technology Co., Ltd. (600522.SH) plans to acquire 100 percent equities of Zhongtian Alloy Technology Co., Ltd., Zhongtian Broadband Technology Co., Ltd., Jiangdong Fittings Equipment Co., Ltd. with 2.25 billion yuan by issuing shares at 14.69 yuan per share through private placement to substantial shareholders including Zhongtian Technology, etc. Meanwhile, it plans to raise a supporting fund of 600 million yuan at no less than 16.46 yuan per share through private placement to invest in projects like the development and industrialization of Zhongtian Broadband 4G intelligent electric tilt antenna, etc. According to performance commitment, the total net profit of the subject companies from 2015 to 2017 shall be no less than 142 million yuan, 156 million yuan and 179 million yuan, respectively.
[Weekly Review]
○ Not hard to predict hotspots in stock market
------
Newton, one of the science’s giants in the 18th century, ended with investment loss in the stock market in the U.K. with a well-known saying that “I can calculate the orbits of celestial motion, but cannot calculate human madness”. Is stock market really more unpredictable than the stars in the sky as commented by Newton? We find that the calculation of the orbits of celestial motion is not as easy as Newton has thought if relativistic effect and three-body problem are taken into consideration. On the contrary, the prediction on the hotspots in the stock market is not totally hopeless if careful observation and thinking is input.
The Chinext Board experienced a large surge earlier and many investors were both happy and worried about that. How to obtain as much profit as possible without risking too much? XFA reviewed historical rules in Data Speaks on May 18 and reminded that the stocks with low price in the Chinext Board might start to surge. After the report, Zhejiang Sunflower Light Energy Science &Technology Co., Ltd. (300111.SZ) soared to the daily 10 percent limit for three consecutive trading days, seeing its stock price increasing from 7 yuan per share to 10 yuan per share. Hebei Jianxin Chemical Co., Ltd. (300107.SZ) and FuJian Green Pine Co., Ltd. (300132.SZ) also soared to the daily 10 percent limit.
As it is known to all, the Internet industry sees promising future. The P/E ratio of many relevant stocks has surged to hundreds of times. If some stocks in traditional industries with a P/E ratio of just dozens of times expand their development space by developing “Internet Plus”, is their future promising too? XFA recently continuously focuses on rural material e-commerce. The report on “Nongshang No.1” is admitted in the announcement by Kingenta Ecological Engineering Group Co., Ltd. (002470.SZ). Kingenta Ecological Engineering surged by 23 percent in nearly one week. The stock prices of Beijing Dabeinong Technology Group Co., Ltd. (002385.SZ) and Stanley Fertilizer Co., Ltd. (002588.SZ) set new records.
Can large-cap shares have a good performance after the big surge of small-cap shares? XFA reported that Guangzhou Shipyard International Company Limited (600685.SH) will change its name and has strong expectation on reform and that Shanghai International Airport Co., Ltd. (600009.SH) was favored by foreign capital last week. Both stocks soared to the daily 10 percent limit. Considering that the trading volume in Shanghai and Shenzhen stock markets approached 2 trillion yuan on May 22, the abundant capital in the markets will fuel the surge of large-cap shares.
>Fund of tens of billions of yuan to consolidate resources, gold cooperation to highlight One Belt and One Road
>New regulatory moves on OTC financing to urge implementation, capital to have limited actual effects
>Online education to develop rapidly, domestic urea price hit new high
>United Electronics to achieve backdoor listing through China-Hemp Industrial Investment, Youbo Phar. to achieve back-door listing via Jiuzhitang
[XFA Focus]
○Fund of tens of billions of yuan to consolidate resources, gold cooperation to highlight One Belt and One Road
------
The promotion of the gold development in the ‘One Belt and One Road’ initiatives and the launching ceremony of the Silk Road gold fund was held in Xi’an City, Shaanxi Province on May 22. The total size of the fund will be 100 billion yuan. The fund will consolidate the gold industrial chain along the Silk Road and facilitate the technology and brand export to gold exploration in regions along the Silk Road after the establishment.
Comment: China’s gold reserve accounts less than 5 percent of the global reserve, which is insufficient for domestic gold consumption. Countries along the Silk Road, such as Uzbekistan and Kazakhstan ranking fourth and ninth in proved gold reserve, enjoy abundant resources. The Chairman of the Shanghai Gold Exchange said that these countries lag behind China in mining and refining technologies and are urgent to cooperate with China. The coverage of the gold cooperation and development mechanism by the One Belt and One Road strategic plan will expand the substance of the strategy and facilitate the implementation of the strategy of RMB internationalization. In terms of listed companies, the substantial shareholder of Zhongjin Gold Corp.,Ltd. (600489.SH) has signed a cooperation framework agreement with the biggest gold producer in Russia. The substantial shareholder of Shandong Gold Mining Co.,Ltd. (600547.SH) is conducting mergers and acquisitions in Mongolia and Kazakhstan. Western Region Gold Co.,Ltd. (601069.SH) indicated in its annual report that Xinjiang Uygur Autonomous Region is adjacent to the Central Asia and enjoys geographical advantages in resources integration.
[Trading Trends]
○New regulatory moves on OTC financing to urge implementation, capital to have limited actual effects
------
The regulatory measures on the umbrella trust and the HOMS of Hundsun Technologies Inc. (600570.SH) introduce by regulatory authorities attracted market attention on the weekend. XFA learnt from securities companies that it is not the beginning of regulatory moves. It is the following regulation after the China Securities Regulatory Commission (CSRC) issued a document on April 17, prohibiting the participation in the OTC stock financing and the umbrella trust in any forms. According to the research of institutes, securities companies have not learnt information about stricter inspections on financing and even requiring clients closing positions by regulatory authorities.
Comment: The regulatory authorities have set limitation on OTC financing in late-April and the effect on the market has been gradually unleashing. The new regulatory measures are to urge securities companies with slow moves to implement the regulatory requirements in advance. The incident may affect the market sentiment in short term, but it has limited actual effect on the capital.
[XFA Selection]
○The mutual recognition of funds between Hong Kong and the Mainland will initiate on July 1. Institutes believe that it will attract more increment capital into the market.
○The ‘special law enforcement by the CSRC in 2015’ investigated 12 cases, targeting at six market manipulations.
○The China Securities Regulatory Commission (CSRC) will streamline the procedures for stocks issuance and speed up in examination. The IPO of 23 enterprises, including China National Nuclear Power Co., Ltd., has been approved.
○The General Office of the State Council issued a document on May 22, requiring promoting the PPP model in water conservancy, environmental protection, medical care and other public service industries.
○The public offering of H shares by Huatai Securities Co., Ltd. (601688.SH) recorded an oversubscription of about 280 times. It is expected to be priced at the upper limit of the issue price.
○Ctrip.com International, Ltd. (NASDAQ: CTRP) buys the stake of eLong, Inc. (NASDAQ: LONG) and becomes its biggest shareholder. The price war in online tourism is expected to reduce.
[Industry Information]
○Informationizationto promote fair education, online education enjoys rosy prospects
------
The International Conference on ICT and Post-2015 Education was convened on May 23 in Qingdao City. Chinese President Xi Jinping sent a congratulatory letter, emphasizing the establishment of an Internet-based, digitalized, individualized and life-long education system. It shall unremittingly promote the educational informationization and expand the coverage of high-end educational resources with the application of information technologies.
Comment: The educational informationization will break the time and space limits in education and promote fair education. The informationization model represented by online education will see rapid development, which enjoys a market value of tens of millions of yuan. In terms of listed companies, Shanghai XinNanyang Co.,Ltd. (600661.SH) will speed up in expanding the industrial chain through the establishment of funds for investments in education. Hailun Piano Co.,Ltd. (300329.SZ) plans to raise about 200 million yuan in establishing an Internet-based platform for art education.
○Booming demand and low inventory drive urea price high
------
XFA learnt that many urea enterprises raised the ex-factory prices by 10 yuan to 20 yuan per ton on May 22. The urea price has hiked nearly 8 percent since late-April.
Comment: The improvement in the domestic urea supply-demand pattern, the increasing agricultural demands as well as the cancellation of peak season windows in the new tariff policies for fertilizers in 2015 will further improve the demand for the export of urea. Insiders believe that driven by the relatively low market inventory and export demand, the urea price will be driven high in short term. In term of listed companies, Luxi Chemical Group Co.,Ltd. (000830.SZ) owns a urea capacity of 1.85 million tons. Hubei Yihua Chemical Industry Co.,Ltd. (000422.SZ) plans to produce 3.20 million tons of urea in 2015.
[Announcement Interpretation]
○United Electronics to achieve backdoor listing through China-Hemp Industrial Investment
------
China-Hemp Industrial Investment Co., Ltd. (002036.SZ) proposes to exchange its current assets of 615 million yuan into 100 percent equities of United Electronics Co., Ltd. Jiangxi priced at 2.85 billion yuan, of which 2.36 billion yuan will be paid by issuing shares at 7.65 yuan per share through private placement. The shortfall of 125 million yuan between the assets exchanged out and the remaining price will be supplemented by the second largest shareholder of United Electronics. The actual controller of the company will be Chen Wei and Han Shenglong and United Electronics will achieve backdoor listing after the transaction.
The company also plans to raise a supporting fund of 200 million yuan by issuing shares at 7.65 yuan per share through private placement. The proceeds will be invested in the industrialization of high-resolution phone lens with an annual capacity of 60 million items. United Electronics is providing high-quality optical lens to intelligent wearable devices and provide one-stop solutions to touch displays for mobile intelligent terminal. Based on the commitment on performance, the net profit after extraordinary items of United Electronics from 2015 to 2017 will be 190 million yuan, 250 million yuan and 320 million yuan, respectively.
○Youbo Phar. to achieve back-door listing via Jiuzhitang with RMB6.5 bln
------
Jiuzhitang Co., Ltd. (000989.SZ) plans to acquire 100 percent equities of Mudanjiang Youbo Pharmaceutical Co., Ltd. with 6.5 billion yuan by issuing shares at 14.22 yuan per share through private placement to Li Zhenguo, etc. Meanwhile, Jiuzhitang plans to transfer 83.50 million shares at 18 yuan per share to Li Zhenguo. The two conditions are mutually premise. Upon completion, Li Zhenguo will act as the new actual controller of Jiuzhitang; Youbo Phar. will achieve back-door listing; the shareholding of Jiuzhitang will be decreased to 4.84 percent, ranking as the tenth largest shareholder.
Just like Jiuzhitang, Youbo Phar. is involved in traditional Chinese medicine industry. Its main product is Shuxuetong injection. The net profit of Youbo Phar. from 2012 to 2014 was 323 million yuan, 364 million yuan and 403 million yuan, respectively. Li Zhenguo, etc. will make specific commitment to the future profit of Youbo Phar.
○New Jialian Electronics to fully control Bus-Online with RMB1.7 bln
------
Zhejiang New Jialian Electronics Co., Ltd. (002188.SZ) plans to acquire 100 percent equities of Bus-Online Technology Co., Ltd. with 1,685 million yuan by issuing 115 million shares at 11.86 yuan per share and paying 326 million yuan in cash. The estimated value-added ratio exceeds 25 times. The company also plans to raise a supporting fund of 344 million yuan at the same offering price through private placement from controlling shareholder.
The counterparty promises that the net profit of Bus-Online from 2015 to 2017 will be no less than 90 million yuan, 140 million yuan and 200 million yuan, respectively. Bus-Online is principally engaged in the operation of mobile television media advertisement and mobile Internet marketing business.
○Aerospace Communications to control Zhihui Haipai to expand to Internet hardware
------
Aerospace Communications Holdings Group Co., Ltd. (600677.SH) plans to acquire 51 percent equities of Zhihui Haipai Technology Co., Ltd. and 36.93 percent equities of Jiangsu Jiecheng Vehicle Electronics Information Engineering Company with 1,238 million yuan by issuing shares at 15.67 yuan per share through private placement. Meanwhile, the company plans to raise a supporting fund of 410 million yuan from China Aerospace Science & Industry Corp. and Tibet ZiguangChunhua Investment Co., Ltd. at the same offering price to increase capital in Zhihui Haipai, etc.
Zhihui Haipai promises that its net profit from 2015 to 2017 will be no less than 200 million yuan, 250 million yuan and 300 million yuan, respectively. Upon completion, the shareholding of the company in Jiangsu Jiecheng will climb to 91.8 percent and it will expand to intelligent terminal, vehicular audio system, wearable devices and smart home business by acquiring Zhihui Haipai.
○Jinghua Phar. to indirectly acquire 100 percent equities of Nantong Dongli to develop pharmaceutical chemicals
------
Nantong Jinghua Pharmaceutical Co., Ltd. (002349.SZ) plans to indirectly acquire 100 percent equities of Nantong Dongli Chemical Co., Ltd. with 690 million yuan by issuing shares at 26.38 yuan per share through private placement and in cash. Meanwhile, it plans to raise a supporting fund of 78.00 million yuan at 29.51 yuan per share from Nantong Industries Holding Group Co., Ltd., its substantial shareholder. Methylhydrazine, the main product of Nantong Dongli, is raw material for pharmacy. The subject company promises that its net profit from 2015 to 2017 will be no less than 52.00 million yuan, 62.40 million yuan and 77.38 million yuan, respectively.
○Zhongtian Technology to acquire asset from substantial shareholder through private placement to add stakes in main business
------
Jiangsu Zhongtian Technology Co., Ltd. (600522.SH) plans to acquire 100 percent equities of Zhongtian Alloy Technology Co., Ltd., Zhongtian Broadband Technology Co., Ltd., Jiangdong Fittings Equipment Co., Ltd. with 2.25 billion yuan by issuing shares at 14.69 yuan per share through private placement to substantial shareholders including Zhongtian Technology, etc. Meanwhile, it plans to raise a supporting fund of 600 million yuan at no less than 16.46 yuan per share through private placement to invest in projects like the development and industrialization of Zhongtian Broadband 4G intelligent electric tilt antenna, etc. According to performance commitment, the total net profit of the subject companies from 2015 to 2017 shall be no less than 142 million yuan, 156 million yuan and 179 million yuan, respectively.
[Weekly Review]
○ Not hard to predict hotspots in stock market
------
Newton, one of the science’s giants in the 18th century, ended with investment loss in the stock market in the U.K. with a well-known saying that “I can calculate the orbits of celestial motion, but cannot calculate human madness”. Is stock market really more unpredictable than the stars in the sky as commented by Newton? We find that the calculation of the orbits of celestial motion is not as easy as Newton has thought if relativistic effect and three-body problem are taken into consideration. On the contrary, the prediction on the hotspots in the stock market is not totally hopeless if careful observation and thinking is input.
The Chinext Board experienced a large surge earlier and many investors were both happy and worried about that. How to obtain as much profit as possible without risking too much? XFA reviewed historical rules in Data Speaks on May 18 and reminded that the stocks with low price in the Chinext Board might start to surge. After the report, Zhejiang Sunflower Light Energy Science &Technology Co., Ltd. (300111.SZ) soared to the daily 10 percent limit for three consecutive trading days, seeing its stock price increasing from 7 yuan per share to 10 yuan per share. Hebei Jianxin Chemical Co., Ltd. (300107.SZ) and FuJian Green Pine Co., Ltd. (300132.SZ) also soared to the daily 10 percent limit.
As it is known to all, the Internet industry sees promising future. The P/E ratio of many relevant stocks has surged to hundreds of times. If some stocks in traditional industries with a P/E ratio of just dozens of times expand their development space by developing “Internet Plus”, is their future promising too? XFA recently continuously focuses on rural material e-commerce. The report on “Nongshang No.1” is admitted in the announcement by Kingenta Ecological Engineering Group Co., Ltd. (002470.SZ). Kingenta Ecological Engineering surged by 23 percent in nearly one week. The stock prices of Beijing Dabeinong Technology Group Co., Ltd. (002385.SZ) and Stanley Fertilizer Co., Ltd. (002588.SZ) set new records.
Can large-cap shares have a good performance after the big surge of small-cap shares? XFA reported that Guangzhou Shipyard International Company Limited (600685.SH) will change its name and has strong expectation on reform and that Shanghai International Airport Co., Ltd. (600009.SH) was favored by foreign capital last week. Both stocks soared to the daily 10 percent limit. Considering that the trading volume in Shanghai and Shenzhen stock markets approached 2 trillion yuan on May 22, the abundant capital in the markets will fuel the surge of large-cap shares.
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