[Today’s Guide]
> Leaders highly value farmland resources, agricultural industry value to show out
> China to promote big data development, dengue fever prevention sees more pressure this year
> Miteno to merge Riyue Tongxing Information Technology, controlling shareholder and staff shareholding plan to subscribe private placement of Bright Oceans Inter-Telecom
> Zijin Mining to acquire overseas mines, Minsheng Holdings to acquire Minsheng Wealth Management
[XFA Focus]
○ Leaders highly value farmland resources, agricultural industry value to show out
------
The www.gov.cn reported on May 26 that Chinese President Xi Jinping made important instructions on the protection of arable land and proposed to protect arable land like protecting pandas. Xi required promoting the orderly transfer of farmland and motivating the enthusiasm of farmers in agricultural production, the motivation in grain production in particular. Premier Li Keqiang also emphasized that it shall explore the potential in land use and improve the efficiency in land use.
Comment: Leaders have given high importance to farmland protection. The land value of Heilongjiang Agriculture Company Limited (600598.SH) and Gansu Yasheng Industrial (Group) Co., Ltd. (600108.SH) will show out gradually. The Ministry of Agriculture indicated that it will follow the instructions of the central government, strengthen farmland protection and improve the facilities in farmland, the fundamental productivity of farmland and the quality of arable land. Jiangsu Jianghuai Engine Co., Ltd. (000816.SZ), which develops intelligent agriculture, and First Tractor Company Limited (601038.SH), a leader in the agricultural machinery industry, will see huge growth potential.
[XFA Selection]
○ FTSE Group indicated that it will adopt China A shares into the FTSE Russell index. The China International Capital Corporation Limited (CICC) believes that it will mainly have psychological effects on the market.
○ The Ministry of Transport will build two multi-functional lighthouses on the Nansha Islands. The information spokesperson of the Ministry of National Defense indicated that the construction has no difference with those in other places in China.
○ South Korea’s Cabinet approved a free trade agreement with China on May 26. The Korean side indicated that it wishes to sign the final agreement with China in June.
○ The draft of the participating premium reform plan has been prepared and is expected to initiate in 2015, which will vitalize the insurance market.
○ The first urban rail transit PPP industrial fund with 100 billion yuan was established on May 26. It is sponsored by Greenland Holding Group Company Limited and Shanghai Construction Group Co., Ltd. (600170.SH).
[Industry Information]
○ China to promote big data development, industrial chain to given more importance
------
The Guiyang International Big Data Expo 2015 opened on May 26. Ma Kai, Vice-Premier of the State Council, proposed to seize important opportunities in establishing the big data industrial chain with data as the core. Ma also advised to develop such new business as cloud computing, data center, calling center and data processing, facilitate the development the big data industry and fully explore the commercial value of big data.
Comment: Driven by the ‘Internet Plus’ strategy of the state, the Internet data recorded geometric progressions and the big data has become strategic resources and capital elements in social development. In terms of listed companies, Beijing Vrv Software Corporation Limited (300352.SZ), whose terminal security products cover various areas, will conduct mass production in the big data business. Inspur Electronic Information Industry Co., Ltd. (000977.SZ) is a leader in the server industry in China. Beijing Venustech Inc. (002439.SZ) is a pioneer in releasing cloud security platforms based on flow inspection.
○ Dengue fever prevention sees more pressure, various measures to introduced
------
The Department of Health of Guangdong Province released warning information on the prevention of dengue fever on May 26. 30 cases have been reported since the beginning of the year, increasing 173 percent year on year. Besides the infection cases caused by overseas transmission, the time for local cases is much earlier than the corresponding period of last year. The source of infection may be the mosquito eggs with virus living through the winter.
Comment: As a result of the warm winter last year and the heavy rainfall in Guangdong Province in spring, it is beneficial to the breeding of mosquitos. It faces more severe conditions in preventing the epidemic. Guangdong Province has freed more than 500,000 ‘infertile’ mosquitos to reduce the population density and will continue to conduct anti-mosquito campaign. Among A-share companies, Jiangsu Yangnong Chemical Co., Ltd. (600486.SH) indicated that its esbiothrin products are mainly used in killing mosquitos. As for disease treatment, the Tanreqing injection of Shanghai Kaibao Pharmaceutical Co., Ltd. (300039.SZ) has been listed in the instructions on treating dengue fever by the National Health and Family Planning Commission.
○ 1st 100-mln-ton tight oil field found in China, oil/gas equipment industry to see broad prospect
------
The official website of China National Petroleum Corporation (CNPC) announced on May 26 that Xin’an bian oil field, China’s first tight oil field with 100 million tons of reserve, was found in Shaanbei area, Shaanxi’ province. The explored reserve of tight oil reaches 100 million tons, laying further foundation for the annual production of 50,000,000 tons in Changqing oil field.
Comment: Tight oil/gas is an unconventional oil/gas resource with big development potential in recent years and it is of great importance in guaranteeing the oil/gas security in China. In recent years, CNPC fully speeds up in the exploration of tight oil. At the beginning of this year, the National Energy Tight Oil/Gas Development Center was officially established in CNPC. The steadily improving tight oil production of CNPC also boosts the demand on oil/gas exploration equipment and service. As for listed companies, Kingdream Public Limited Company (000852.SZ)’s scheme of acquiring the oil equipment asset of China Petrochemical Corporation (Sinopec Group) through private placement has been approved by China Securities Regulatory Commission (CSRC); as a private comprehensive oil service company, LandOcean Energy Services Co., Ltd. (300157.SZ) actively promotes intelligent oil field business.
[Announcement Interpretation]
○ Miteno to merge Riyue Tongxing Information Technology to develop Internet marketing
------
Beijing Miteno Communication Technology Co., Ltd. (300038.SZ) plans to acquire 100 percent equities of Riyue Tongxing Information Technology (Beijing) Company with 560 million yuan by issuing shares at 23 yuan per share through private placement and paying in cash. Meanwhile, it plans to raise a supporting fund of 300 million yuan through private placement. Riyue Tongxing Information Technology is involved in Internet marketing industry and promises that its net profit from 2015 to 2017 will reach 40.00 million yuan, 52.00 million yuan and 67.60 million yuan, respectively.
○ Bright Oceans Inter-Telecom to expand principal business with RMB1.1 bln, controlling shareholder and staff shareholding plan to subscribe all private placement
------
Bright Oceans Inter-Telecom Corporation (600289.SH) plans to raise 1,162 million yuan by issuing 61.45 million shares at 18.91 yuan per share to invest in the construction of intelligent city, industrial big data analysis and operation project, the construction of cloud security management system, the construction of network optimization intelligent platform and the construction of regional innovation application plant, and to supplement working capital. The Fanglve Bright Oceans No. 2 Fund set up by the company’s controlling shareholder Bright Oceans Corporation and some director, supervisor and senior management of Bright Oceans Corporation as well as the company’s staff shareholding plan fully subscribe the private placement.
○ Zijin Mining to raise RMB10 bln to acquire overseas mines
------
Zijin Mining Group Co., Ltd. (601899.SH; 02899.HK) plans to raise 10 billion yuan by issuing shares at no less than 4.13 yuan per share through private placement to acquire or construct large overseas mines including Kamoa copper mine, etc. Upon completion of acquisition, the mineral reserve of the company will be largely lifted: the total reserve of gold will be increased from 1,342 ton (by the end of last year) to 1,477 ton; the total reserve of copper will be increased from 15,430,000 ton to 26,790,000 ton.
○ Minsheng Holdings to acquire Minsheng Wealth Management with RMB350 mln to develop wealth management
------
Minsheng Holdings Co., Ltd. (000416.SZ) plans to acquire 100 percent equities of Minsheng Wealth Management Co., Ltd. held by China Oceanwide Holdings Group with 351 million yuan. Minsheng Wealth Management mainly provides high net worth people with comprehensive wealth management service. The revenue of Minsheng Wealth Management in 2014 and the Jan-April period of 2015 is 17.61 million yuan and 22.43 million yuan, respectively, while corresponding net profit is 0.32 million yuan and 0.35 million yuan, respectively. Minsheng Holdings will expand to wealth management business area after this transaction.
○ Sino Wealth Electronic to launch inventive scheme with restricted shares
------
Sino Wealth Electronic Ltd. (300327.SZ) plans to award 2.867 million restricted shares at 11.83 yuan per share (40 percent of 27.95 yuan per share, its stock price closed before trading suspension) to 87 incentive objects. The performance assessment condition is that taking 2014 as the benchmark year, the growth rate of the net profit from 2015 to 2018 shall be no less than 25 percent, 50 percent, 80 percent and 116 percent.
> Leaders highly value farmland resources, agricultural industry value to show out
> China to promote big data development, dengue fever prevention sees more pressure this year
> Miteno to merge Riyue Tongxing Information Technology, controlling shareholder and staff shareholding plan to subscribe private placement of Bright Oceans Inter-Telecom
> Zijin Mining to acquire overseas mines, Minsheng Holdings to acquire Minsheng Wealth Management
[XFA Focus]
○ Leaders highly value farmland resources, agricultural industry value to show out
------
The www.gov.cn reported on May 26 that Chinese President Xi Jinping made important instructions on the protection of arable land and proposed to protect arable land like protecting pandas. Xi required promoting the orderly transfer of farmland and motivating the enthusiasm of farmers in agricultural production, the motivation in grain production in particular. Premier Li Keqiang also emphasized that it shall explore the potential in land use and improve the efficiency in land use.
Comment: Leaders have given high importance to farmland protection. The land value of Heilongjiang Agriculture Company Limited (600598.SH) and Gansu Yasheng Industrial (Group) Co., Ltd. (600108.SH) will show out gradually. The Ministry of Agriculture indicated that it will follow the instructions of the central government, strengthen farmland protection and improve the facilities in farmland, the fundamental productivity of farmland and the quality of arable land. Jiangsu Jianghuai Engine Co., Ltd. (000816.SZ), which develops intelligent agriculture, and First Tractor Company Limited (601038.SH), a leader in the agricultural machinery industry, will see huge growth potential.
[XFA Selection]
○ FTSE Group indicated that it will adopt China A shares into the FTSE Russell index. The China International Capital Corporation Limited (CICC) believes that it will mainly have psychological effects on the market.
○ The Ministry of Transport will build two multi-functional lighthouses on the Nansha Islands. The information spokesperson of the Ministry of National Defense indicated that the construction has no difference with those in other places in China.
○ South Korea’s Cabinet approved a free trade agreement with China on May 26. The Korean side indicated that it wishes to sign the final agreement with China in June.
○ The draft of the participating premium reform plan has been prepared and is expected to initiate in 2015, which will vitalize the insurance market.
○ The first urban rail transit PPP industrial fund with 100 billion yuan was established on May 26. It is sponsored by Greenland Holding Group Company Limited and Shanghai Construction Group Co., Ltd. (600170.SH).
[Industry Information]
○ China to promote big data development, industrial chain to given more importance
------
The Guiyang International Big Data Expo 2015 opened on May 26. Ma Kai, Vice-Premier of the State Council, proposed to seize important opportunities in establishing the big data industrial chain with data as the core. Ma also advised to develop such new business as cloud computing, data center, calling center and data processing, facilitate the development the big data industry and fully explore the commercial value of big data.
Comment: Driven by the ‘Internet Plus’ strategy of the state, the Internet data recorded geometric progressions and the big data has become strategic resources and capital elements in social development. In terms of listed companies, Beijing Vrv Software Corporation Limited (300352.SZ), whose terminal security products cover various areas, will conduct mass production in the big data business. Inspur Electronic Information Industry Co., Ltd. (000977.SZ) is a leader in the server industry in China. Beijing Venustech Inc. (002439.SZ) is a pioneer in releasing cloud security platforms based on flow inspection.
○ Dengue fever prevention sees more pressure, various measures to introduced
------
The Department of Health of Guangdong Province released warning information on the prevention of dengue fever on May 26. 30 cases have been reported since the beginning of the year, increasing 173 percent year on year. Besides the infection cases caused by overseas transmission, the time for local cases is much earlier than the corresponding period of last year. The source of infection may be the mosquito eggs with virus living through the winter.
Comment: As a result of the warm winter last year and the heavy rainfall in Guangdong Province in spring, it is beneficial to the breeding of mosquitos. It faces more severe conditions in preventing the epidemic. Guangdong Province has freed more than 500,000 ‘infertile’ mosquitos to reduce the population density and will continue to conduct anti-mosquito campaign. Among A-share companies, Jiangsu Yangnong Chemical Co., Ltd. (600486.SH) indicated that its esbiothrin products are mainly used in killing mosquitos. As for disease treatment, the Tanreqing injection of Shanghai Kaibao Pharmaceutical Co., Ltd. (300039.SZ) has been listed in the instructions on treating dengue fever by the National Health and Family Planning Commission.
○ 1st 100-mln-ton tight oil field found in China, oil/gas equipment industry to see broad prospect
------
The official website of China National Petroleum Corporation (CNPC) announced on May 26 that Xin’an bian oil field, China’s first tight oil field with 100 million tons of reserve, was found in Shaanbei area, Shaanxi’ province. The explored reserve of tight oil reaches 100 million tons, laying further foundation for the annual production of 50,000,000 tons in Changqing oil field.
Comment: Tight oil/gas is an unconventional oil/gas resource with big development potential in recent years and it is of great importance in guaranteeing the oil/gas security in China. In recent years, CNPC fully speeds up in the exploration of tight oil. At the beginning of this year, the National Energy Tight Oil/Gas Development Center was officially established in CNPC. The steadily improving tight oil production of CNPC also boosts the demand on oil/gas exploration equipment and service. As for listed companies, Kingdream Public Limited Company (000852.SZ)’s scheme of acquiring the oil equipment asset of China Petrochemical Corporation (Sinopec Group) through private placement has been approved by China Securities Regulatory Commission (CSRC); as a private comprehensive oil service company, LandOcean Energy Services Co., Ltd. (300157.SZ) actively promotes intelligent oil field business.
[Announcement Interpretation]
○ Miteno to merge Riyue Tongxing Information Technology to develop Internet marketing
------
Beijing Miteno Communication Technology Co., Ltd. (300038.SZ) plans to acquire 100 percent equities of Riyue Tongxing Information Technology (Beijing) Company with 560 million yuan by issuing shares at 23 yuan per share through private placement and paying in cash. Meanwhile, it plans to raise a supporting fund of 300 million yuan through private placement. Riyue Tongxing Information Technology is involved in Internet marketing industry and promises that its net profit from 2015 to 2017 will reach 40.00 million yuan, 52.00 million yuan and 67.60 million yuan, respectively.
○ Bright Oceans Inter-Telecom to expand principal business with RMB1.1 bln, controlling shareholder and staff shareholding plan to subscribe all private placement
------
Bright Oceans Inter-Telecom Corporation (600289.SH) plans to raise 1,162 million yuan by issuing 61.45 million shares at 18.91 yuan per share to invest in the construction of intelligent city, industrial big data analysis and operation project, the construction of cloud security management system, the construction of network optimization intelligent platform and the construction of regional innovation application plant, and to supplement working capital. The Fanglve Bright Oceans No. 2 Fund set up by the company’s controlling shareholder Bright Oceans Corporation and some director, supervisor and senior management of Bright Oceans Corporation as well as the company’s staff shareholding plan fully subscribe the private placement.
○ Zijin Mining to raise RMB10 bln to acquire overseas mines
------
Zijin Mining Group Co., Ltd. (601899.SH; 02899.HK) plans to raise 10 billion yuan by issuing shares at no less than 4.13 yuan per share through private placement to acquire or construct large overseas mines including Kamoa copper mine, etc. Upon completion of acquisition, the mineral reserve of the company will be largely lifted: the total reserve of gold will be increased from 1,342 ton (by the end of last year) to 1,477 ton; the total reserve of copper will be increased from 15,430,000 ton to 26,790,000 ton.
○ Minsheng Holdings to acquire Minsheng Wealth Management with RMB350 mln to develop wealth management
------
Minsheng Holdings Co., Ltd. (000416.SZ) plans to acquire 100 percent equities of Minsheng Wealth Management Co., Ltd. held by China Oceanwide Holdings Group with 351 million yuan. Minsheng Wealth Management mainly provides high net worth people with comprehensive wealth management service. The revenue of Minsheng Wealth Management in 2014 and the Jan-April period of 2015 is 17.61 million yuan and 22.43 million yuan, respectively, while corresponding net profit is 0.32 million yuan and 0.35 million yuan, respectively. Minsheng Holdings will expand to wealth management business area after this transaction.
○ Sino Wealth Electronic to launch inventive scheme with restricted shares
------
Sino Wealth Electronic Ltd. (300327.SZ) plans to award 2.867 million restricted shares at 11.83 yuan per share (40 percent of 27.95 yuan per share, its stock price closed before trading suspension) to 87 incentive objects. The performance assessment condition is that taking 2014 as the benchmark year, the growth rate of the net profit from 2015 to 2018 shall be no less than 25 percent, 50 percent, 80 percent and 116 percent.
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