[Today's Guide]
○Central government requires improving family planning service, universal two-child policy to boost market demand
○Market focuses on fundamentals again, individual stocks expecting high growth to favor
○Furen Pharmaceutical Group Industry to fully control Kaifeng Phar., Changgao High Voltage Switchgear buys security and protection companies
○Companies including Zhongji Investment Holding to see shareholding increase, Join-cheer Software and Nanfang Pump Industry propose high share conversion and dividend
[SSN Focus]
○Central government requires improving family planning service, universal two-child policy to boost market demand
------
The Decision on Implementing Universal Two-child Policy Reform and Improving Service and Management of Family Planning by the Communist Party of China (CPC), the Central Government and the State Council has been issued on Jan. 5. It proposed to improve the service system for maternal and health care as well as family planning; and to basically realize high-class service of family planning for everybody. In terms of detailed measures, necessary services related to assisted reproductive technology will be provided to people who have difficulties in childbearing, and capabilities will also be reinforced to treat and cure critical pregnant or lying-in woman and neonates.
Comment: Due to many factors such as implementation of two-child policy and delayed childbearing age, high-risk lying-in women take up higher proportion and the demand for assisted reproductive technology constantly increases. Reproductive health is becoming a blue ocean market with accelerated development. In terms of listed companies, infant care equipment business of Ningbo David Medical Device Co., Ltd. (300314.SZ) plays a leading role in domestic market; Guangdong Taiantang Pharmaceutical Co., Ltd. (002433.SZ) has a production line for the whole period of childbearing; reproductive center of Top Choice Medical Investment Co., Inc. (600763.SH) is likely to gain breakthroughs this year.
○Controlling shareholders continue to lock non-tradable stocks to ease market concern
------
Up to now, controlling shareholders of 26 listed companies in the two bourses on Jan. 5 announced to extend the non-tradable period on their own initiative. Partially, controlling shareholders of various listed companies, such as Zhejiang Shenghua Biok Biology Co., Ltd. (600226.SH) (within one year), Hybio Pharmaceutical Co., Ltd. (300199.SZ) (within six months) and Gansu Gangtai Holding(Group) Co., Ltd. (600687.SH) (within six months), indicated that they will not decrease the shareholdings in any forms; those of Kangmei Pharmaceutical Co., Ltd. (600518.SH) and Hunan China Sun Pharmaceutical Machinery Co., Ltd. (300216.SZ) mentioned that they will not decrease the shareholdings within one year; shareholdings of Shenzhen Jufei Optoelectronics Co., Ltd. (300303.SZ) and Tongding Interconnection Information Co., Ltd. (002491.SZ) will not be decreased within next six months.
Comment: The unlocking of non-tradable stocks cannot simply equal to decrease in shareholdings. Employee shareholding plans have frequently occurred since last year, and insurance fund often bought the shares of listed companies through the secondary market acquisition to 5 percent limit, which shows that, under the background of insufficient assets, equities of superior listed companies are always the best choice for industrial capital and financial capital. Moves of these controlling shareholders, directors, supervisors and senior managers even reflect their confidence in the development of their companies.
[SSN Selection]
○Chinese Premier Li Keqiang took a ride in a solar car independently researched and developed by local enterprises in Taiyuan city, Shanxi province on Jan. 5, proposing to create new forces to drive the economy.
○Shanghai and Shenzhen stock exchanges released detailed regulations on issuance of IPOs, and investors should make sure that they have enough capital on the T 2 day after subscription according to results about successful application.
○Reverse repo scale of the central bank expanded to 130 billion yuan on Jan. 5, and the tight capital supply in interbank market gradually eases.
○Jiangxi province issued a document to preferentially support silicon substrate LED technology, and related technology is likely to win a national technology prize, which will be issued on Jan. 8.
○Premium income of listed insurance companies saw good beginning, and the premium revenue from new orders for individual insurances of China Pacific Insurance (Group) Co., Ltd. (601601.SH) in the first four days increased by 130 percent year on year.
TOP
[Data Speaks]
○Market focuses on fundamentals again, individual stocks expecting high growth to favor
------
Along with the approaching disclosure of annual reports and the consecutive plunge of indexes in recent period, the market focuses on fundamentals again. Stocks with high performance growth are favored by capitals. For example, Beijing Sanju Environmental Protection ＆ New Materials Co., Ltd. (300072.SZ) announced large growth of annual performance on Jan. 4 evening and saw its stock price nearly soaring to the daily limit of 10 percent on Jan. 5. Since more companies will unveil their annual performance later, the companies listed on the ChiNext Board that haven't forecast their performance yet might be interested in by the market.
Comment: According to statistics by SSN, 405 companies listed on the ChiNext Board haven't forecast their performance yet. The net profit of Risen Energy Co., Ltd. (300118.SZ) and Shenzhen Sunway Communication Co., Ltd. (300136.SZ) in the first three quarters of 2015 has exceeded that of the whole year in 2014 by a large margin, suggesting a high growth in 2015. As to principal business, Risen Energy might benefit from the rushing installation of photovoltaic in the fourth quarter of 2015. Thanks to the sharp increase of orders from Apple Inc. (NASDAQ:AAPL), Sunway Communication expects a rapid growth of both revenue and profit in next six quarters.
[Industry Information]
○Wearable equipment to maintain high growth, new technology expands application
------
The Consumer Technology Association in the U.S. claims in its latest report that global expenditure on consumer electronic technology products is expected to decline for the second year in a row this year, but the sales volume of wearable equipment will step up by 59 percent to 25 billion U.S. dollars. As reported by tech.sina.com.cn, NXP Semiconductors N.V. (NASDAQ: NXPI) will launch a Bluetooth LE chip, which extends the battery endurance of intelligent wearable equipment by 100 percent, on the forthcoming 2016 CES exhibition.
Comment: As technologies advance, the battery endurance of wearable equipment is improving. Besides, more functions of wearable equipment in connecting human and intelligent equipment are gradually exploited along with the development of technologies related to smart home and intelligent automobile. As to listed companies, Sunwoda Electronic Co., Ltd. (300207.SZ) and GoerTek Inc. (002241.SZ) are involved in the production and sales of batteries and components for wearable equipment.
TOP
[Announcement Interpretation]
○Furen Pharmaceutical Group Industry acquires core asset from substantial shareholder
------
Furen Pharmaceutical Group Industry Co., Ltd. (600781.SH) proposes to acquire 100 percent equities of Kaifeng Pharmaceutical (Group) Co., Ltd. held by its controlling shareholder Furen Pharmaceutical Group Pharmaceutical Limited Company and others with 7.85 billion yuan. The transaction will be done by issuing 456 million shares through private placement at 16.50 yuan per share and paying 320 million yuan in cash. Meanwhile, a supporting fund of 5.3 billion yuan will be raised through private placement at no less than 16.50 yuan per share. The total shareholding proportion of Furen Pharmaceutical Group will increase to 47.69 percent upon completion of the transaction. Kaifeng Pharmaceutical is principally engaged in the development and sales of chemical medicine, Chinese patent medicine and crude drugs.
○Changgao High Voltage Switchgear buys security and protection companies
------
Hunan Changgao High Voltage Switchgear Group Co., Ltd. (002452.SZ) plans to purchase 100 percent equity of Zhengzhou Jinhui Computer Systems Engineering Co., Ltd. by issuing 159 million shares at a price of 9.15 yuan per share through private placement and paying in cash, which totals 1.79 billion yuan. The company accordingly enters the industry of intelligent identification and analysis on image and video. The counterparty promised that net profits of Jinhui Computer Systems Engineering will not be less than 88.92 million yuan, 122 million yuan and 163 million yuan from 2016 to 2018.
Changgao High Voltage Switchgear also intends to acquire 100 percent equity of Hubei Corporation of China Network Power by issuing 19 million shares at the same price and paying in cash, which amounts to 293 million yuan. This acquisition allows the company to expand its principal business to the fields of power engineering planning and design and main contracting. The counterparty promised that net profits of Hubei Corporation of China Network Power will not be less than 17.02 million yuan, 22.74 million yuan and 30.32 million yuan from 2016 to 2018. Meanwhile, it plans to raise supporting funds of 1.1 billion yuan by issuing shares at a price of 8.30 yuan per share through private placement.
TOP
○Several companies see shareholding increase
------
Yan Jinggang, actual controller of Shanghai Zhongji Investment Holding Co., Ltd. (600634.SH), plans to increase his shareholding by 6.5 million shares at least in next six months, accounting for no more than 2 percent of the total share capital of the company. Xu Xianming and Liu Lu, shareholders of Leo Group Co., Ltd. (002131.SZ), increase their shareholding by 470,000 shares and 280,000 shares respectively on Jan. 5. Xu Xianming plans to increase his shareholding in the company at no more than 100 million yuan when the share price is less than 22 yuan per share in the following six months. The company's latest share price reports 17.89 yuan per share. Shihezi Demeike Investment Partnership, shareholding of Hubei Huachangda Intelligent Equipment Co., Ltd. (300278.SZ) is going to increase its shareholding in the company by 1.8 million shares at least from January to June. Suning Appliance Group, the second largest shareholder of Suning Commerce Group Co., Ltd. (002024.SZ), plans to increase its shares worth no less than 1 billion yuan in the company in next three months.
○Gongjin Electronics partners with Little Turtle Science and Technology to launch new gene detection product
------
Shenzhen Gongjin Electronics Co., Ltd. (603118.SH) plans to make additional investment of 30 million yuan to Shanghai Little Turtle Science and Technology Co., Ltd. through its wholly-owned subsidiary. After that, Gongjin Electronics will hold 10 percent equity in Little Turtle Science and Technology. Little Turtle Science and Technology devotes itself in the R＆D and industrialization of new-generation semi-conductor gene chip, protein chip and relevant equipment. At present, it has developed the semi-conductor gene sequencing chip and sequencer. SSN also learns that Gongjin Electronics is going to hold a press conference to jointly launch new gene detection product with Little Turtle Science and Technology on Jan. 6.
[Financial Reports Express]
○Join-cheer Software and Nanfang Pump Industry propose high share conversion and dividend
----
Beijing Join-cheer Software Co., Ltd. (002279.SZ) proposes a 15-for-10 conversion of capital surplus into shares combined with 1 yuan dividend for every 10 shares in its annual report. Nanfang Pump Industry Co., Ltd. (300145.SZ) predicts its net profits to grow by 10-30 percent year on year and proposes a 10-for-10 conversion of capital surplus into shares combined with 1 yuan dividend for every 10 shares in its annual report.
[Trading Trends]
○Jiangnan Red Arrow bought through 3 institutional seats
------
The trading volume ranking list on Jan. 5 shows that Hunan Jiangnan Red Arrow Co., Ltd. (000519.SZ) was bought through three institutional seats with a total of 239 million yuan, accounting for 15.9 percent of its intraday turnover. In addition, it was sold through one institutional seat with a total of 43.9 million yuan.
Comment: The company recently disclosed a reorganization proposal. The assets it plans to acquire cover the core military products and relevant high-quality civilian products of China North Industries Group Corporation (Norinco Group). Institutions believe that the company is expected to finish the asset injection in 2016 and will integrate profit statements. Hence, the company will become an intelligent ammunition platform of the Norinco Group and is likely to conduct further integration in the future.
TOP
○Central government requires improving family planning service, universal two-child policy to boost market demand
○Market focuses on fundamentals again, individual stocks expecting high growth to favor
○Furen Pharmaceutical Group Industry to fully control Kaifeng Phar., Changgao High Voltage Switchgear buys security and protection companies
○Companies including Zhongji Investment Holding to see shareholding increase, Join-cheer Software and Nanfang Pump Industry propose high share conversion and dividend
[SSN Focus]
○Central government requires improving family planning service, universal two-child policy to boost market demand
------
The Decision on Implementing Universal Two-child Policy Reform and Improving Service and Management of Family Planning by the Communist Party of China (CPC), the Central Government and the State Council has been issued on Jan. 5. It proposed to improve the service system for maternal and health care as well as family planning; and to basically realize high-class service of family planning for everybody. In terms of detailed measures, necessary services related to assisted reproductive technology will be provided to people who have difficulties in childbearing, and capabilities will also be reinforced to treat and cure critical pregnant or lying-in woman and neonates.
Comment: Due to many factors such as implementation of two-child policy and delayed childbearing age, high-risk lying-in women take up higher proportion and the demand for assisted reproductive technology constantly increases. Reproductive health is becoming a blue ocean market with accelerated development. In terms of listed companies, infant care equipment business of Ningbo David Medical Device Co., Ltd. (300314.SZ) plays a leading role in domestic market; Guangdong Taiantang Pharmaceutical Co., Ltd. (002433.SZ) has a production line for the whole period of childbearing; reproductive center of Top Choice Medical Investment Co., Inc. (600763.SH) is likely to gain breakthroughs this year.
○Controlling shareholders continue to lock non-tradable stocks to ease market concern
------
Up to now, controlling shareholders of 26 listed companies in the two bourses on Jan. 5 announced to extend the non-tradable period on their own initiative. Partially, controlling shareholders of various listed companies, such as Zhejiang Shenghua Biok Biology Co., Ltd. (600226.SH) (within one year), Hybio Pharmaceutical Co., Ltd. (300199.SZ) (within six months) and Gansu Gangtai Holding(Group) Co., Ltd. (600687.SH) (within six months), indicated that they will not decrease the shareholdings in any forms; those of Kangmei Pharmaceutical Co., Ltd. (600518.SH) and Hunan China Sun Pharmaceutical Machinery Co., Ltd. (300216.SZ) mentioned that they will not decrease the shareholdings within one year; shareholdings of Shenzhen Jufei Optoelectronics Co., Ltd. (300303.SZ) and Tongding Interconnection Information Co., Ltd. (002491.SZ) will not be decreased within next six months.
Comment: The unlocking of non-tradable stocks cannot simply equal to decrease in shareholdings. Employee shareholding plans have frequently occurred since last year, and insurance fund often bought the shares of listed companies through the secondary market acquisition to 5 percent limit, which shows that, under the background of insufficient assets, equities of superior listed companies are always the best choice for industrial capital and financial capital. Moves of these controlling shareholders, directors, supervisors and senior managers even reflect their confidence in the development of their companies.
[SSN Selection]
○Chinese Premier Li Keqiang took a ride in a solar car independently researched and developed by local enterprises in Taiyuan city, Shanxi province on Jan. 5, proposing to create new forces to drive the economy.
○Shanghai and Shenzhen stock exchanges released detailed regulations on issuance of IPOs, and investors should make sure that they have enough capital on the T 2 day after subscription according to results about successful application.
○Reverse repo scale of the central bank expanded to 130 billion yuan on Jan. 5, and the tight capital supply in interbank market gradually eases.
○Jiangxi province issued a document to preferentially support silicon substrate LED technology, and related technology is likely to win a national technology prize, which will be issued on Jan. 8.
○Premium income of listed insurance companies saw good beginning, and the premium revenue from new orders for individual insurances of China Pacific Insurance (Group) Co., Ltd. (601601.SH) in the first four days increased by 130 percent year on year.
TOP
[Data Speaks]
○Market focuses on fundamentals again, individual stocks expecting high growth to favor
------
Along with the approaching disclosure of annual reports and the consecutive plunge of indexes in recent period, the market focuses on fundamentals again. Stocks with high performance growth are favored by capitals. For example, Beijing Sanju Environmental Protection ＆ New Materials Co., Ltd. (300072.SZ) announced large growth of annual performance on Jan. 4 evening and saw its stock price nearly soaring to the daily limit of 10 percent on Jan. 5. Since more companies will unveil their annual performance later, the companies listed on the ChiNext Board that haven't forecast their performance yet might be interested in by the market.
Comment: According to statistics by SSN, 405 companies listed on the ChiNext Board haven't forecast their performance yet. The net profit of Risen Energy Co., Ltd. (300118.SZ) and Shenzhen Sunway Communication Co., Ltd. (300136.SZ) in the first three quarters of 2015 has exceeded that of the whole year in 2014 by a large margin, suggesting a high growth in 2015. As to principal business, Risen Energy might benefit from the rushing installation of photovoltaic in the fourth quarter of 2015. Thanks to the sharp increase of orders from Apple Inc. (NASDAQ:AAPL), Sunway Communication expects a rapid growth of both revenue and profit in next six quarters.
[Industry Information]
○Wearable equipment to maintain high growth, new technology expands application
------
The Consumer Technology Association in the U.S. claims in its latest report that global expenditure on consumer electronic technology products is expected to decline for the second year in a row this year, but the sales volume of wearable equipment will step up by 59 percent to 25 billion U.S. dollars. As reported by tech.sina.com.cn, NXP Semiconductors N.V. (NASDAQ: NXPI) will launch a Bluetooth LE chip, which extends the battery endurance of intelligent wearable equipment by 100 percent, on the forthcoming 2016 CES exhibition.
Comment: As technologies advance, the battery endurance of wearable equipment is improving. Besides, more functions of wearable equipment in connecting human and intelligent equipment are gradually exploited along with the development of technologies related to smart home and intelligent automobile. As to listed companies, Sunwoda Electronic Co., Ltd. (300207.SZ) and GoerTek Inc. (002241.SZ) are involved in the production and sales of batteries and components for wearable equipment.
TOP
[Announcement Interpretation]
○Furen Pharmaceutical Group Industry acquires core asset from substantial shareholder
------
Furen Pharmaceutical Group Industry Co., Ltd. (600781.SH) proposes to acquire 100 percent equities of Kaifeng Pharmaceutical (Group) Co., Ltd. held by its controlling shareholder Furen Pharmaceutical Group Pharmaceutical Limited Company and others with 7.85 billion yuan. The transaction will be done by issuing 456 million shares through private placement at 16.50 yuan per share and paying 320 million yuan in cash. Meanwhile, a supporting fund of 5.3 billion yuan will be raised through private placement at no less than 16.50 yuan per share. The total shareholding proportion of Furen Pharmaceutical Group will increase to 47.69 percent upon completion of the transaction. Kaifeng Pharmaceutical is principally engaged in the development and sales of chemical medicine, Chinese patent medicine and crude drugs.
○Changgao High Voltage Switchgear buys security and protection companies
------
Hunan Changgao High Voltage Switchgear Group Co., Ltd. (002452.SZ) plans to purchase 100 percent equity of Zhengzhou Jinhui Computer Systems Engineering Co., Ltd. by issuing 159 million shares at a price of 9.15 yuan per share through private placement and paying in cash, which totals 1.79 billion yuan. The company accordingly enters the industry of intelligent identification and analysis on image and video. The counterparty promised that net profits of Jinhui Computer Systems Engineering will not be less than 88.92 million yuan, 122 million yuan and 163 million yuan from 2016 to 2018.
Changgao High Voltage Switchgear also intends to acquire 100 percent equity of Hubei Corporation of China Network Power by issuing 19 million shares at the same price and paying in cash, which amounts to 293 million yuan. This acquisition allows the company to expand its principal business to the fields of power engineering planning and design and main contracting. The counterparty promised that net profits of Hubei Corporation of China Network Power will not be less than 17.02 million yuan, 22.74 million yuan and 30.32 million yuan from 2016 to 2018. Meanwhile, it plans to raise supporting funds of 1.1 billion yuan by issuing shares at a price of 8.30 yuan per share through private placement.
TOP
○Several companies see shareholding increase
------
Yan Jinggang, actual controller of Shanghai Zhongji Investment Holding Co., Ltd. (600634.SH), plans to increase his shareholding by 6.5 million shares at least in next six months, accounting for no more than 2 percent of the total share capital of the company. Xu Xianming and Liu Lu, shareholders of Leo Group Co., Ltd. (002131.SZ), increase their shareholding by 470,000 shares and 280,000 shares respectively on Jan. 5. Xu Xianming plans to increase his shareholding in the company at no more than 100 million yuan when the share price is less than 22 yuan per share in the following six months. The company's latest share price reports 17.89 yuan per share. Shihezi Demeike Investment Partnership, shareholding of Hubei Huachangda Intelligent Equipment Co., Ltd. (300278.SZ) is going to increase its shareholding in the company by 1.8 million shares at least from January to June. Suning Appliance Group, the second largest shareholder of Suning Commerce Group Co., Ltd. (002024.SZ), plans to increase its shares worth no less than 1 billion yuan in the company in next three months.
○Gongjin Electronics partners with Little Turtle Science and Technology to launch new gene detection product
------
Shenzhen Gongjin Electronics Co., Ltd. (603118.SH) plans to make additional investment of 30 million yuan to Shanghai Little Turtle Science and Technology Co., Ltd. through its wholly-owned subsidiary. After that, Gongjin Electronics will hold 10 percent equity in Little Turtle Science and Technology. Little Turtle Science and Technology devotes itself in the R＆D and industrialization of new-generation semi-conductor gene chip, protein chip and relevant equipment. At present, it has developed the semi-conductor gene sequencing chip and sequencer. SSN also learns that Gongjin Electronics is going to hold a press conference to jointly launch new gene detection product with Little Turtle Science and Technology on Jan. 6.
[Financial Reports Express]
○Join-cheer Software and Nanfang Pump Industry propose high share conversion and dividend
----
Beijing Join-cheer Software Co., Ltd. (002279.SZ) proposes a 15-for-10 conversion of capital surplus into shares combined with 1 yuan dividend for every 10 shares in its annual report. Nanfang Pump Industry Co., Ltd. (300145.SZ) predicts its net profits to grow by 10-30 percent year on year and proposes a 10-for-10 conversion of capital surplus into shares combined with 1 yuan dividend for every 10 shares in its annual report.
[Trading Trends]
○Jiangnan Red Arrow bought through 3 institutional seats
------
The trading volume ranking list on Jan. 5 shows that Hunan Jiangnan Red Arrow Co., Ltd. (000519.SZ) was bought through three institutional seats with a total of 239 million yuan, accounting for 15.9 percent of its intraday turnover. In addition, it was sold through one institutional seat with a total of 43.9 million yuan.
Comment: The company recently disclosed a reorganization proposal. The assets it plans to acquire cover the core military products and relevant high-quality civilian products of China North Industries Group Corporation (Norinco Group). Institutions believe that the company is expected to finish the asset injection in 2016 and will integrate profit statements. Hence, the company will become an intelligent ammunition platform of the Norinco Group and is likely to conduct further integration in the future.
TOP
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