[Today's Guide]
○Opinions issued to deepen military reform, various fields to see actual breakthroughs
○MOA issued implementation opinions on big data to promote agricultural and rural development, Action Plan for Internet plus Energy to release in Jan. at soonest
○Dilong New Material to invest in mobile games, Fuan Phar. proposes to acquire Justaware Phar.
○TianMuShan Phar. to fully control Cotech Bio-Gen, Wangfujing Department Store to upgrade principal business by raising RMB3 bln through private placement
[SSN Focus]
○Opinions issued to deepen military reform, various fields to see actual breakthroughs
------
The Central Military Commission on Jan. 1 issued Opinions on Deepening Military and Army Reform, required focusing on reforms of leadership management system and joint operational command system, and concertedly promoting scale structure, policy system and military ＆ civil integration to develop the reforms. It also required that we should build a modern military system with Chinese features to win the information-oriented war, and effectively perform the missions before 2020. Additionally, leadership organization of liberation army, rocket army and strategic supporting army have been officially established to become a significant landmark in our modern military construction. Press spokesman of Ministry of National Defense announced that China is independently designing and building the second aircraft carrier.
Comment: Battlefield space of modern wars becomes more stereoscopic and multidimensional, based on this, it is a priority among priorities to develop navy-air armies and long-distance first when optimizing our military force structure. Industrial chains related to aviation equipment and aircraft carrier are likely to speed up the development. In terms of listed companies, China Avionics Systems Co., Ltd. (600372.SH) is an integrated platform of Aviation Industry Corporation of China; AVIC Aero-Engine Controls Co., Ltd. (000738.SZ) benefits from motor assets integration of the Group; navy defense equipment business of CSSC Offshore ＆ Marine Engineering (Group) Company Limited (600685.SH) gains leading competitiveness.
[SSN Selection]
○China Securities Regulatory Commission will carry out new rules on IPOs from Jan. 1, 2016, and prepayment is no longer required for subscription.
○National Bureau of Statistics issued PMIs of manufacturing and non-manufacturing industries of last December, and both rebounded. It becomes increasingly obvious that the economy touches the bottom and stabilizes gradually.
○The National Development and Reform Commission issued a document to reinforce the regional cooperation work and mentioned that Guideline for Development Planning of Yangtze River Economic Belt will be issued soon.
○Shenzhen Stock Exchange announced the appointed timetable of annual report disclosure. Myhome Real Estate Development Group Co., Ltd. (000667.SZ) and CASIN Guoxing Property Development Co., Ltd. (000838.SZ) will release their annual reports on Jan. 6 firstly.
○The total office box of China's film increased by 48.7 percent year on year in 2015, setting a new high since 2011.
TOP
[Industrial Information]
○MOA issued implementation opinions on big data to promote agricultural and rural development
------
Ministry of Agriculture (MOA) issued Implementation Opinions on Enhancing Big Data Development of Agriculture and Rural Area a few days ago, and mentioned that, by the end of 2017, cross-department and cross-region data resource share will basically form. By 2015, we should realize the connection of industrial chain, value chain, and supply chain of the agriculture, greatly promote intelligent agricultural production and networking operation, comprehensively build up an investigation and analysis system based on global agricultural data. Meanwhile, it also proposed to establish a national agricultural data center, enhance the share and openness of data, and improve standard system of agricultural data.
Comment: Based on media report, the central government's No.1 document proposed to set a title as Several Opinions of the Central Committee of the Communist Party of China and the State Council on Implementing and Developing New Concept, Accelerating Agricultural Modernization, and Comprehensively Realizing Well-off Goal, which is predicted to be issued at the end of January or the beginning of February to the public. As the national strategy, big data's rapid development in the agricultural field, which is beneficial to improve the competitiveness of agricultural products, and greatly promote the sub-industries of rural e-commerce and agricultural information-oriented development. In terms of listed companies, Shenzhen Batian Ecotypic Engineering Co., Ltd. (002170.SZ), China Securities Index Co., Ltd. (000816.SZ) and etc. are all positively deploying for agricultural big data businesses to improve industrial chains for agricultural assets sales and planting services.
○Action Plan for Internet plus Energy submitted for review and to release in Jan. at soonest
------
SSN learns that the "Action Plan for Internet plus Energy" has been submitted for review recently. The file, finally renamed as the "Guideline for the Action for Internet plus Energy", is expected to be released in January at the soonest. The guideline aims to promote intelligent innovations on energy ration and consumption, highlight application scenarios and advance the Internet of energy consumption.
Comment: As a response, relevant listed companies are also actively exploring business models closely connected with principal businesses, such as power selling, distributed energy sources, operation of electric vehicles and etc. As to listed companies, Guangzhou Zhiguang Electric Co., Ltd. (002169.SZ) established a power selling company last December and actively participates in the piloting reform of power selling in Guangdong province; Shenzhen Rainbow Fine Chemical Industry Co., Ltd. (002256.SZ) has expanded to distributed energy sources and the operation of new energy vehicles.
TOP
[Announcement Interpretation]
○Dilong New Material to invest RMB3.4 bln in mobile games
------
Zhejiang Dilong New Material Co., Ltd. (002247.SZ) plans to acquire 100 percent equities of Suzhou Meishengyuan Information Technology Co., Ltd. with 3.4 billion yuan. The transaction will be done by issuing shares at 20 yuan per share through private placement and paying in cash. Dilong New Material also plans to raise a supporting fund of 300 million yuan by issuing shares at 17.8 yuan per share through private placement. Meishengyuan Information Technology, engaged in mobile games, promises a net profit of 180 million yuan, 320 million yuan and 468 million yuan, respectively, from 2015 to 2017. The stock price of Dilong New Material closed at 20.71 yuan per share before trading suspension.
○Fuan Phar. proposes to acquire Justaware Phar. with RMB1.5 bln
------
Fuan Pharmaceutical (Group) Co., Ltd. (300194.SZ) plans to acquire 100 percent equities of Yantai Justaware Pharmaceutical Co., Ltd. with 1.5 billion yuan by issuing shares at 14.65 yuan per share through private placement and paying in cash. Meanwhile, Fuan Phar. proposes to raise a supporting fund of 740 million yuan through private placement at the same offering price. Justaware Phar. mainly produces gentamicin sulfate, lipoic acid and etc., supplementing the principal business of Fuan Phar. The net profit of Justaware Phar. should reach 80 million yuan, 100 million yuan and 120 million yuan, respectively, from 2015 to 2017, according to performance commitment.
TOP
○TianMuShan Phar. to fully control Cotech Bio-Gen with over RMB1.2 bln
------
Hangzhou TianMuShan Pharmaceutical Enterprise Co., Ltd. (600671.SH) plans to acquire 100 percent equities of Liaoning Cotech Bio-Gen Pharmaceutical Co., Ltd. with 1.25 billion yuan. The transaction will be done by issuing 34.04 million shares at 22.25 yuan per share through private placement and paying 493 million yuan in cash. A supporting fund of 935 million yuan will be raised through private placement at the same offering price. Great Wall Movie and Television Cultural Enterprise Group Co., Ltd., controlling shareholder of the company, proposes to subscribe 600 million yuan. Upon completion of the transaction, the company will expand to products for cardiovascular and cerebrovascular diseases, diabetes, antineoplastic and etc. The net profit of Cotech Bio-Gen from 2016 to 2018 will be no less than 70 million yuan, 90 million yuan and 150 million yuan, respectively, according to performance commitment.
○Wangfujing Department Store to upgrade principal business by raising RMB3 bln through private placement
------
Beijing Wangfujing Department Store (Group) Co., Ltd. (600859.SH) proposes to raise 3 billion yuan through private placement by issuing 130 million shares at 23.02 yuan per share. The raised fund will be invested in several shopping mall projects and O2O omni-channel projects. Sanpower Group and Sanpower Group (Nanjing) Investment Management Co., Ltd. will subscribe 1.5 billion yuan, while the State-owned Assets Supervision and Administration Commission of People's Government of Beijing Municipality will subscribe 1 billion yuan. Wangfujing Department Store also announced that it will transform towards a retailing company covering multiple kinds of business and all walks of consumers' life.
○Xinghua Chemistry to transform towards LNG and coal chemical industry
------
Shaanxi Xinghua Chemistry Co., Ltd. (002109.SZ) plans to acquire 100 percent equities of Shaanxi Yanchang Petroleum and Gas Co., Ltd. and Shaanxi Yanchang Petroleum Xinghua Chemical Co., Ltd. through asset swap and by issuing 470 million shares through private placement at 6.68 yuan per share. The transaction is valued at 4,213 million yuan. In the meantime, the company plans to raise a supporting fund of 1.7 billion yuan through private placement at no less than 8.22 yuan per share.
○Chongqing General Trading Group plans holistic listing
------
Chongqing Department Store Co., Ltd. (600729.SH) plans to bid for 100 percent equity of Chongqing Shangshe Automobile Sales Co., Ltd., Chongqing Shangshe E-commerce Co., Ltd., Chongqing Shangshe Home Appliances Company, Chongqing Shiyi Product Quality Test Co., Ltd. and Chongqing Zhongtian Real Estate Development Co., Ltd. in cash, which are transferred by its controlling shareholder Chongqing General Trading Group. Book value of the underlying assets totals 233 million yuan and assessed value reports 703 million yuan.
[Financial Reports Express]
○Performance of Jinlong Machinery ＆ Electronic and Lead Intelligent Equipment expected to increase significantly in 2015
------
Jinlong Machinery ＆ Electronic Co., Ltd. (300032.SZ) predicts its net profits will grow by 230 percent-260 percent year on year in 2105, which is mainly contributed by the surging orders of small and special electric machine and the combined profit statements of its two subsidiaries. Wuxi Lead Intelligent Equipment Co., Ltd. (300450.SZ) predicts its net profits will increase by 106 percent-135 percent year on year in 2015 due to the remarkable sales performance of lithium-battery equipment.
[Trading Trends]
○Taiji Computer Corporation bought by five institutional seats
------
The trading volume ranking list on Dec. 31 shows that Taiji Computer Corporation Limited (002368.SZ) was bought through five institutional seats with a total amount of 470 million yuan, accounting for 14 percent of its intraday turnover.
Comment: The company suspended trading from May 14, 2015 and resumed trading on Dec. 31 last year. During the suspension of trading, the company put forward a proposal to acquire 100 percent equity of Shenzhen Powerleader Computer System Co., Ltd. and Beijing Quantum Weiye Information Technology Co., Ltd. with stock rights and cash. Institutions believe that this acquisition will not only strengthen the company's ability in cloud computing but also enables the company to provide a whole set of cloud computing solution. With a great many of clients and solution cases, it might become a leader in cloud computing field in the future.
[New Year's Message]
○Farewell to 2015 and look forward to 2016
------
At the beginning of 2016, let's look back into 2015. The "Internet plus" and the "Belt and Road Initiatives" were two main topics in the bullish market in the first half of 2015, and the topics of virtual reality and lithium battery conducted the market in the second half. After experiencing the bullish and bearish market, investors are suggested to pay attention to the following aspects in 2016.
Firstly, in the long run, investors can focus on the stocks in industries with high prosperity and wait for industrial dividend to benefit the company's performance. If they cannot grasp the market trend, they may as well get to know the industrial fundamentals. The new energy vehicle industry, which SSN kept eyes on last year, and its derivative lithium battery sector is an excellent case.
Secondly, under the premise of information advantage, they might participate in the short-term investment with event-driven opportunities. They can be advantageous in getting information ahead or having in-depth analysis on the information. For example, SSN took the leading in reporting the significant policies such as the universal two-child policy and healthy China.
Thirdly, they should seize the new opportunities brought by scientific and technological progress. Leaders in scientific and technological industry successively launched VR products, which may drive the virtual reality to become a new direction in IT industry. The number of VIP users of iqiyi.com exceeds 10 million, which may indicate that consumers are getting used to pay to watch online videos. Introduction of the new technological products will provide more choices to our life and bring more investment opportunities to the stock market.
TOP
○Opinions issued to deepen military reform, various fields to see actual breakthroughs
○MOA issued implementation opinions on big data to promote agricultural and rural development, Action Plan for Internet plus Energy to release in Jan. at soonest
○Dilong New Material to invest in mobile games, Fuan Phar. proposes to acquire Justaware Phar.
○TianMuShan Phar. to fully control Cotech Bio-Gen, Wangfujing Department Store to upgrade principal business by raising RMB3 bln through private placement
[SSN Focus]
○Opinions issued to deepen military reform, various fields to see actual breakthroughs
------
The Central Military Commission on Jan. 1 issued Opinions on Deepening Military and Army Reform, required focusing on reforms of leadership management system and joint operational command system, and concertedly promoting scale structure, policy system and military ＆ civil integration to develop the reforms. It also required that we should build a modern military system with Chinese features to win the information-oriented war, and effectively perform the missions before 2020. Additionally, leadership organization of liberation army, rocket army and strategic supporting army have been officially established to become a significant landmark in our modern military construction. Press spokesman of Ministry of National Defense announced that China is independently designing and building the second aircraft carrier.
Comment: Battlefield space of modern wars becomes more stereoscopic and multidimensional, based on this, it is a priority among priorities to develop navy-air armies and long-distance first when optimizing our military force structure. Industrial chains related to aviation equipment and aircraft carrier are likely to speed up the development. In terms of listed companies, China Avionics Systems Co., Ltd. (600372.SH) is an integrated platform of Aviation Industry Corporation of China; AVIC Aero-Engine Controls Co., Ltd. (000738.SZ) benefits from motor assets integration of the Group; navy defense equipment business of CSSC Offshore ＆ Marine Engineering (Group) Company Limited (600685.SH) gains leading competitiveness.
[SSN Selection]
○China Securities Regulatory Commission will carry out new rules on IPOs from Jan. 1, 2016, and prepayment is no longer required for subscription.
○National Bureau of Statistics issued PMIs of manufacturing and non-manufacturing industries of last December, and both rebounded. It becomes increasingly obvious that the economy touches the bottom and stabilizes gradually.
○The National Development and Reform Commission issued a document to reinforce the regional cooperation work and mentioned that Guideline for Development Planning of Yangtze River Economic Belt will be issued soon.
○Shenzhen Stock Exchange announced the appointed timetable of annual report disclosure. Myhome Real Estate Development Group Co., Ltd. (000667.SZ) and CASIN Guoxing Property Development Co., Ltd. (000838.SZ) will release their annual reports on Jan. 6 firstly.
○The total office box of China's film increased by 48.7 percent year on year in 2015, setting a new high since 2011.
TOP
[Industrial Information]
○MOA issued implementation opinions on big data to promote agricultural and rural development
------
Ministry of Agriculture (MOA) issued Implementation Opinions on Enhancing Big Data Development of Agriculture and Rural Area a few days ago, and mentioned that, by the end of 2017, cross-department and cross-region data resource share will basically form. By 2015, we should realize the connection of industrial chain, value chain, and supply chain of the agriculture, greatly promote intelligent agricultural production and networking operation, comprehensively build up an investigation and analysis system based on global agricultural data. Meanwhile, it also proposed to establish a national agricultural data center, enhance the share and openness of data, and improve standard system of agricultural data.
Comment: Based on media report, the central government's No.1 document proposed to set a title as Several Opinions of the Central Committee of the Communist Party of China and the State Council on Implementing and Developing New Concept, Accelerating Agricultural Modernization, and Comprehensively Realizing Well-off Goal, which is predicted to be issued at the end of January or the beginning of February to the public. As the national strategy, big data's rapid development in the agricultural field, which is beneficial to improve the competitiveness of agricultural products, and greatly promote the sub-industries of rural e-commerce and agricultural information-oriented development. In terms of listed companies, Shenzhen Batian Ecotypic Engineering Co., Ltd. (002170.SZ), China Securities Index Co., Ltd. (000816.SZ) and etc. are all positively deploying for agricultural big data businesses to improve industrial chains for agricultural assets sales and planting services.
○Action Plan for Internet plus Energy submitted for review and to release in Jan. at soonest
------
SSN learns that the "Action Plan for Internet plus Energy" has been submitted for review recently. The file, finally renamed as the "Guideline for the Action for Internet plus Energy", is expected to be released in January at the soonest. The guideline aims to promote intelligent innovations on energy ration and consumption, highlight application scenarios and advance the Internet of energy consumption.
Comment: As a response, relevant listed companies are also actively exploring business models closely connected with principal businesses, such as power selling, distributed energy sources, operation of electric vehicles and etc. As to listed companies, Guangzhou Zhiguang Electric Co., Ltd. (002169.SZ) established a power selling company last December and actively participates in the piloting reform of power selling in Guangdong province; Shenzhen Rainbow Fine Chemical Industry Co., Ltd. (002256.SZ) has expanded to distributed energy sources and the operation of new energy vehicles.
TOP
[Announcement Interpretation]
○Dilong New Material to invest RMB3.4 bln in mobile games
------
Zhejiang Dilong New Material Co., Ltd. (002247.SZ) plans to acquire 100 percent equities of Suzhou Meishengyuan Information Technology Co., Ltd. with 3.4 billion yuan. The transaction will be done by issuing shares at 20 yuan per share through private placement and paying in cash. Dilong New Material also plans to raise a supporting fund of 300 million yuan by issuing shares at 17.8 yuan per share through private placement. Meishengyuan Information Technology, engaged in mobile games, promises a net profit of 180 million yuan, 320 million yuan and 468 million yuan, respectively, from 2015 to 2017. The stock price of Dilong New Material closed at 20.71 yuan per share before trading suspension.
○Fuan Phar. proposes to acquire Justaware Phar. with RMB1.5 bln
------
Fuan Pharmaceutical (Group) Co., Ltd. (300194.SZ) plans to acquire 100 percent equities of Yantai Justaware Pharmaceutical Co., Ltd. with 1.5 billion yuan by issuing shares at 14.65 yuan per share through private placement and paying in cash. Meanwhile, Fuan Phar. proposes to raise a supporting fund of 740 million yuan through private placement at the same offering price. Justaware Phar. mainly produces gentamicin sulfate, lipoic acid and etc., supplementing the principal business of Fuan Phar. The net profit of Justaware Phar. should reach 80 million yuan, 100 million yuan and 120 million yuan, respectively, from 2015 to 2017, according to performance commitment.
TOP
○TianMuShan Phar. to fully control Cotech Bio-Gen with over RMB1.2 bln
------
Hangzhou TianMuShan Pharmaceutical Enterprise Co., Ltd. (600671.SH) plans to acquire 100 percent equities of Liaoning Cotech Bio-Gen Pharmaceutical Co., Ltd. with 1.25 billion yuan. The transaction will be done by issuing 34.04 million shares at 22.25 yuan per share through private placement and paying 493 million yuan in cash. A supporting fund of 935 million yuan will be raised through private placement at the same offering price. Great Wall Movie and Television Cultural Enterprise Group Co., Ltd., controlling shareholder of the company, proposes to subscribe 600 million yuan. Upon completion of the transaction, the company will expand to products for cardiovascular and cerebrovascular diseases, diabetes, antineoplastic and etc. The net profit of Cotech Bio-Gen from 2016 to 2018 will be no less than 70 million yuan, 90 million yuan and 150 million yuan, respectively, according to performance commitment.
○Wangfujing Department Store to upgrade principal business by raising RMB3 bln through private placement
------
Beijing Wangfujing Department Store (Group) Co., Ltd. (600859.SH) proposes to raise 3 billion yuan through private placement by issuing 130 million shares at 23.02 yuan per share. The raised fund will be invested in several shopping mall projects and O2O omni-channel projects. Sanpower Group and Sanpower Group (Nanjing) Investment Management Co., Ltd. will subscribe 1.5 billion yuan, while the State-owned Assets Supervision and Administration Commission of People's Government of Beijing Municipality will subscribe 1 billion yuan. Wangfujing Department Store also announced that it will transform towards a retailing company covering multiple kinds of business and all walks of consumers' life.
○Xinghua Chemistry to transform towards LNG and coal chemical industry
------
Shaanxi Xinghua Chemistry Co., Ltd. (002109.SZ) plans to acquire 100 percent equities of Shaanxi Yanchang Petroleum and Gas Co., Ltd. and Shaanxi Yanchang Petroleum Xinghua Chemical Co., Ltd. through asset swap and by issuing 470 million shares through private placement at 6.68 yuan per share. The transaction is valued at 4,213 million yuan. In the meantime, the company plans to raise a supporting fund of 1.7 billion yuan through private placement at no less than 8.22 yuan per share.
○Chongqing General Trading Group plans holistic listing
------
Chongqing Department Store Co., Ltd. (600729.SH) plans to bid for 100 percent equity of Chongqing Shangshe Automobile Sales Co., Ltd., Chongqing Shangshe E-commerce Co., Ltd., Chongqing Shangshe Home Appliances Company, Chongqing Shiyi Product Quality Test Co., Ltd. and Chongqing Zhongtian Real Estate Development Co., Ltd. in cash, which are transferred by its controlling shareholder Chongqing General Trading Group. Book value of the underlying assets totals 233 million yuan and assessed value reports 703 million yuan.
[Financial Reports Express]
○Performance of Jinlong Machinery ＆ Electronic and Lead Intelligent Equipment expected to increase significantly in 2015
------
Jinlong Machinery ＆ Electronic Co., Ltd. (300032.SZ) predicts its net profits will grow by 230 percent-260 percent year on year in 2105, which is mainly contributed by the surging orders of small and special electric machine and the combined profit statements of its two subsidiaries. Wuxi Lead Intelligent Equipment Co., Ltd. (300450.SZ) predicts its net profits will increase by 106 percent-135 percent year on year in 2015 due to the remarkable sales performance of lithium-battery equipment.
[Trading Trends]
○Taiji Computer Corporation bought by five institutional seats
------
The trading volume ranking list on Dec. 31 shows that Taiji Computer Corporation Limited (002368.SZ) was bought through five institutional seats with a total amount of 470 million yuan, accounting for 14 percent of its intraday turnover.
Comment: The company suspended trading from May 14, 2015 and resumed trading on Dec. 31 last year. During the suspension of trading, the company put forward a proposal to acquire 100 percent equity of Shenzhen Powerleader Computer System Co., Ltd. and Beijing Quantum Weiye Information Technology Co., Ltd. with stock rights and cash. Institutions believe that this acquisition will not only strengthen the company's ability in cloud computing but also enables the company to provide a whole set of cloud computing solution. With a great many of clients and solution cases, it might become a leader in cloud computing field in the future.
[New Year's Message]
○Farewell to 2015 and look forward to 2016
------
At the beginning of 2016, let's look back into 2015. The "Internet plus" and the "Belt and Road Initiatives" were two main topics in the bullish market in the first half of 2015, and the topics of virtual reality and lithium battery conducted the market in the second half. After experiencing the bullish and bearish market, investors are suggested to pay attention to the following aspects in 2016.
Firstly, in the long run, investors can focus on the stocks in industries with high prosperity and wait for industrial dividend to benefit the company's performance. If they cannot grasp the market trend, they may as well get to know the industrial fundamentals. The new energy vehicle industry, which SSN kept eyes on last year, and its derivative lithium battery sector is an excellent case.
Secondly, under the premise of information advantage, they might participate in the short-term investment with event-driven opportunities. They can be advantageous in getting information ahead or having in-depth analysis on the information. For example, SSN took the leading in reporting the significant policies such as the universal two-child policy and healthy China.
Thirdly, they should seize the new opportunities brought by scientific and technological progress. Leaders in scientific and technological industry successively launched VR products, which may drive the virtual reality to become a new direction in IT industry. The number of VIP users of iqiyi.com exceeds 10 million, which may indicate that consumers are getting used to pay to watch online videos. Introduction of the new technological products will provide more choices to our life and bring more investment opportunities to the stock market.
TOP
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