[Today's Guide]
○Various ministries and commissions take actions in succession to stabilize growth
○Production limit drives molybdenum concentrates prices higher, product prices in molybdenum industrial chain may further surge
○Anne Corporation acquires EFIDA Technology, Hengshun Vinegar-industry sees shareholding increase
○Shenwu Environment ＆ Energy Technology and Orbita Control Engineering propose high share conversion, Er-Kang Phar. forecasts performance growth
[SSN Focus]
○Various ministries and commissions take actions in succession to stabilize growth
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The National Development and Reform Commission (NDRC) on Jan. 11 issued the Notice on Developing Demonstration Work for Social Capital to Invest in Railway Project and announced eight demonstration projects. Specialized construction funds will focus on these projects during allocation, and provide proper support within the range of central budget and investment. On the same day, the Ministry of Housing and Urban-Rural Development issued a notice on providing financial support to the construction of sponge cities together with the Agricultural Development Bank of China. And the Ministry of Industry and Information Technology (MIIT) also indicated a few days ago that it will carry out intelligent manufacturing projects, and support innovative application of five key equipment including numerically-controlled machine tool and industrial robot.
Comment: Various ministries and commissions have taken actions in succession to stabilize growth since the beginning of 2016. Interurban railway and sponge city construction can expand effective investment of public products, and improve quality of new-type urbanization. Intelligent manufacturing is the key for transformation and upgrading of enterprises in traditional industries. Along with successively-issued supporting policies, huge development space of related industries will gradually emerge.
[SSN Selection]
○The 20th meeting of deepening reform team of the central government was held on Jan. 11, and Chinese President Xi Jinping stressed that we should strive to build up main framework of the reform this year.
○Up to the evening of Jan. 11, the exchange rate of CNH/USD has greatly rebounded by 1.2 percent, setting a new high for growth rate in a single trading day in four months.
○China Banking Regulatory Commission proposed in the meeting to comprehensively investigate and manage risks of cross-financial products to reinforce the management on assets management products.
○Zhundong-Wannan?1,100 KV UHVDC Transmission Project of the State Grid Corporation of China (SGCC) commences construction on Jan. 11. UHV equipment manufacturers are likely to see many invitations for bids recently.
○Guaranteed fund of E Fund Management Co., Ltd. has been "sold out" to raise the fund of around 4.5 billion yuan, setting a new high for the first fundraising scale of guaranteed fund in over three years.
○Controlling shareholder of Shenzhen Coship Electronics Co., Ltd. (002052.SZ) pledged the shares nearly to the warming line to make it suspend from Jan. 12; Sinosun Technology Co., Ltd. (300333.SZ) and Zhejiang Wolwo Bio-Pharmaceutical Co., Ltd. (300357.SZ) issued shareholders' shareholding-decrease plan.
TOP
[Industry Information]
○Production limit drives molybdenum concentrates prices higher, product prices in molybdenum industrial chain may further surge
------
SSN learnt that the prices of molybdenum concentrates have surged over 18 percent since December 2015 as a result of the production suspension in certain mines. It also drove the prices of ferromolybdenum and other products in the downstream higher. Relevant manufacturers indicate that the current prices of molybdenum ores are still below the cost of most mines. They are unlikely to resume production and the market prices will be supported.
Comment: Insiders estimate that driven by the integration of capacity brought about by the supply-side reform and the relatively tight market sources, enterprises will continue to boost the price and the prices of products in the molybdenum industrial chain may continue to surge. In addition, the price hike of steel products also supports the cost transfer.
TOP
[Announcement Interpretation]
○Anne Corporation acquires digital rights operator with RMB1.1 bln
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Xiamen Anne Corporation Limited (002235.SZ) proposes to acquire 100 percent equities of Beijing EFIDA Technology Co., Ltd. with 1,138 million yuan. The transaction will be done by issuing 43.60 million shares through private placement at 23.64 yuan per share and paying 107 million yuan in cash. In the meantime, Anne Corporation plans to raise a supporting fund of 1 billion yuan by issuing 29.61 million shares at no less than 33.77 yuan per share. EFIDA Technology, a service provider of digital rights, promises that its net profit from 2016 to 2018 will be no less than 76 million yuan, 100 million yuan and 130 million yuan, respectively.
Zhang Jie, actual controller of the company, transferred 3.08 percent equities of the company's total share capital to Shenzhen Fanglve Capital Management Co., Ltd. and Shenzhen Qianhe Capital Management Co., Ltd. during trading suspension. Fang Xiangsheng is the legal representative of Fanglve Capital Management, while Wang Yawei is the legal person of Qianhe Capital Management.
○Companies including Hengshun Vinegar-industry see shareholding increase
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Jiangsu Hengshun Group Co., Ltd., controlling shareholder of Jiangsu Hengshun Vinegar-industry Co., Ltd. (600305.SH), has totally increased shareholding in the company by 1.75 million shares on Jan. 8 and 11 and will continue the shareholding increase later. Chongqing Energy Investment Group Co., Ltd., the second largest shareholder of CPI Yuanda Environmental-Protection (Group) Co., Ltd. (600292.SH), increased shareholding in the company by 1.27 million shares on Jan. 8 and a further shareholding increase of no less than 25.70 million yuan is planned. Liaoning Xintai Co., Ltd., controlling shareholder of Dandong Xintai Electric Co., Ltd. (300372.SZ), increased shareholding in the company by 2.05 million shares on Jan. 8 and 11.
On Jan. 11, Hangzhou Binjiang Investment Holding Co., Ltd., controlling shareholder of Hangzhou Binjiang Real Estate Group Co., Ltd. (002244.SZ), increased shareholding in the company by 5.55 million shares; Shanghai Zhongsheng Hongqiao Enterprise Management Co., Ltd., controlling shareholder of Shanghai Tianchen Co., Ltd. (600620.SH), increased shareholding in the company by 1 million shares; some directors, supervisors and senior managers of Guangdong Chj Industry Co., Ltd. (002345.SZ) totally increased shareholding in the company by 1,958,000 shares in the company. Oxiran Group, controlling shareholder of Liao Ning Oxiranchem, Inc. (300082.SZ), proposes to increase shareholding in the company with no more than 100 million yuan in next 12 months.
○Kunlun Tech controls world's largest homosexual social networking service
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Beijing Kunlun Tech Co., Ltd. (300418.SZ) plans to purchase 60 percent equity of New Grindr LLC at 93 million U.S. dollars. Headquartered in Los Angeles of the U.S., Grindr is the world's largest social networking service for the homosexuals. Its net profit recorded 660,000 U.S. dollars, 9.75 million U.S. dollars and 13.74 million U.S. dollars during 2012 and 2014, respectively.
TOP
[Financial Reports Express]
○3 companies propose high share conversion and dividend
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Beijing Shenwu Environment ＆ Energy Technology Corp., controlling shareholder of Shenwu Environmental Technology Co., Ltd. (300156.SZ), proposed a 15-for-10 conversion of capital surplus into shares combined with 1 yuan dividend for every 10 shares in the company's profit distribution plan. Zhuhai Orbita Control Engineering Co., Ltd. (300053.SZ) proposed a 15-for-10 conversion of capital surplus into shares combined with dividend in the company's profit distribution plan. East Group Co., Ltd. (300376.SZ) proposed a 10-for-10 conversion of capital surplus into shares combined with 2.6 yuan dividend for every 10 shares in the company's profit distribution plan.
○Net profit of 3 companies to see multiplied surge
------
Hunan Er-Kang Pharmaceutical Co., Ltd. (300267.SZ) is expected to see a year-on-year growth of 97 -117 percent in net profit mainly owing to the rapid development of its new products. Due to the good performance of its subsidiary Sichuan Zhongwu Hongyu Science and Technology Co., Ltd., Honyu Wear-Resistant New Materials Co., Ltd. (300345.SZ) is predicted to see a year-on-year growth of 294-342 percent in net profit. Net profit of Myhome Real Estate Development Group Co., Ltd. (000667.SZ) is expected to increase by 458-484 percent resulting from the increasing earnings of commercial buildings.
[Trading Trends]
○Haide Industry bought through 5 institutional seats
------
The trading volume ranking list on Jan. 11 shows that Hainan Haide Industry Co., Ltd. (000567.SZ) was bought through five institutional seats with a total of 140 million yuan, accounting for 32.5 percent of its intraday turnover, and it was sold through one institutional seat with a total of 22.146 million yuan.
Comment: The company introduced a private placement plan last December, intending to strip off the real estate assets and deal with the non-performing assets. Institutions believe that as the economic growth pivot goes down, the operation and management business concerning the non-performing assets will see prominent growth in both supply side and demand side. The short-term stimulator is the company obtained the non-performing assets license as scheduled and the long-term stimulator will depend on the increase in the non-performing loan of banking sector.
TOP
○Various ministries and commissions take actions in succession to stabilize growth
○Production limit drives molybdenum concentrates prices higher, product prices in molybdenum industrial chain may further surge
○Anne Corporation acquires EFIDA Technology, Hengshun Vinegar-industry sees shareholding increase
○Shenwu Environment ＆ Energy Technology and Orbita Control Engineering propose high share conversion, Er-Kang Phar. forecasts performance growth
[SSN Focus]
○Various ministries and commissions take actions in succession to stabilize growth
------
The National Development and Reform Commission (NDRC) on Jan. 11 issued the Notice on Developing Demonstration Work for Social Capital to Invest in Railway Project and announced eight demonstration projects. Specialized construction funds will focus on these projects during allocation, and provide proper support within the range of central budget and investment. On the same day, the Ministry of Housing and Urban-Rural Development issued a notice on providing financial support to the construction of sponge cities together with the Agricultural Development Bank of China. And the Ministry of Industry and Information Technology (MIIT) also indicated a few days ago that it will carry out intelligent manufacturing projects, and support innovative application of five key equipment including numerically-controlled machine tool and industrial robot.
Comment: Various ministries and commissions have taken actions in succession to stabilize growth since the beginning of 2016. Interurban railway and sponge city construction can expand effective investment of public products, and improve quality of new-type urbanization. Intelligent manufacturing is the key for transformation and upgrading of enterprises in traditional industries. Along with successively-issued supporting policies, huge development space of related industries will gradually emerge.
[SSN Selection]
○The 20th meeting of deepening reform team of the central government was held on Jan. 11, and Chinese President Xi Jinping stressed that we should strive to build up main framework of the reform this year.
○Up to the evening of Jan. 11, the exchange rate of CNH/USD has greatly rebounded by 1.2 percent, setting a new high for growth rate in a single trading day in four months.
○China Banking Regulatory Commission proposed in the meeting to comprehensively investigate and manage risks of cross-financial products to reinforce the management on assets management products.
○Zhundong-Wannan?1,100 KV UHVDC Transmission Project of the State Grid Corporation of China (SGCC) commences construction on Jan. 11. UHV equipment manufacturers are likely to see many invitations for bids recently.
○Guaranteed fund of E Fund Management Co., Ltd. has been "sold out" to raise the fund of around 4.5 billion yuan, setting a new high for the first fundraising scale of guaranteed fund in over three years.
○Controlling shareholder of Shenzhen Coship Electronics Co., Ltd. (002052.SZ) pledged the shares nearly to the warming line to make it suspend from Jan. 12; Sinosun Technology Co., Ltd. (300333.SZ) and Zhejiang Wolwo Bio-Pharmaceutical Co., Ltd. (300357.SZ) issued shareholders' shareholding-decrease plan.
TOP
[Industry Information]
○Production limit drives molybdenum concentrates prices higher, product prices in molybdenum industrial chain may further surge
------
SSN learnt that the prices of molybdenum concentrates have surged over 18 percent since December 2015 as a result of the production suspension in certain mines. It also drove the prices of ferromolybdenum and other products in the downstream higher. Relevant manufacturers indicate that the current prices of molybdenum ores are still below the cost of most mines. They are unlikely to resume production and the market prices will be supported.
Comment: Insiders estimate that driven by the integration of capacity brought about by the supply-side reform and the relatively tight market sources, enterprises will continue to boost the price and the prices of products in the molybdenum industrial chain may continue to surge. In addition, the price hike of steel products also supports the cost transfer.
TOP
[Announcement Interpretation]
○Anne Corporation acquires digital rights operator with RMB1.1 bln
------
Xiamen Anne Corporation Limited (002235.SZ) proposes to acquire 100 percent equities of Beijing EFIDA Technology Co., Ltd. with 1,138 million yuan. The transaction will be done by issuing 43.60 million shares through private placement at 23.64 yuan per share and paying 107 million yuan in cash. In the meantime, Anne Corporation plans to raise a supporting fund of 1 billion yuan by issuing 29.61 million shares at no less than 33.77 yuan per share. EFIDA Technology, a service provider of digital rights, promises that its net profit from 2016 to 2018 will be no less than 76 million yuan, 100 million yuan and 130 million yuan, respectively.
Zhang Jie, actual controller of the company, transferred 3.08 percent equities of the company's total share capital to Shenzhen Fanglve Capital Management Co., Ltd. and Shenzhen Qianhe Capital Management Co., Ltd. during trading suspension. Fang Xiangsheng is the legal representative of Fanglve Capital Management, while Wang Yawei is the legal person of Qianhe Capital Management.
○Companies including Hengshun Vinegar-industry see shareholding increase
------
Jiangsu Hengshun Group Co., Ltd., controlling shareholder of Jiangsu Hengshun Vinegar-industry Co., Ltd. (600305.SH), has totally increased shareholding in the company by 1.75 million shares on Jan. 8 and 11 and will continue the shareholding increase later. Chongqing Energy Investment Group Co., Ltd., the second largest shareholder of CPI Yuanda Environmental-Protection (Group) Co., Ltd. (600292.SH), increased shareholding in the company by 1.27 million shares on Jan. 8 and a further shareholding increase of no less than 25.70 million yuan is planned. Liaoning Xintai Co., Ltd., controlling shareholder of Dandong Xintai Electric Co., Ltd. (300372.SZ), increased shareholding in the company by 2.05 million shares on Jan. 8 and 11.
On Jan. 11, Hangzhou Binjiang Investment Holding Co., Ltd., controlling shareholder of Hangzhou Binjiang Real Estate Group Co., Ltd. (002244.SZ), increased shareholding in the company by 5.55 million shares; Shanghai Zhongsheng Hongqiao Enterprise Management Co., Ltd., controlling shareholder of Shanghai Tianchen Co., Ltd. (600620.SH), increased shareholding in the company by 1 million shares; some directors, supervisors and senior managers of Guangdong Chj Industry Co., Ltd. (002345.SZ) totally increased shareholding in the company by 1,958,000 shares in the company. Oxiran Group, controlling shareholder of Liao Ning Oxiranchem, Inc. (300082.SZ), proposes to increase shareholding in the company with no more than 100 million yuan in next 12 months.
○Kunlun Tech controls world's largest homosexual social networking service
------
Beijing Kunlun Tech Co., Ltd. (300418.SZ) plans to purchase 60 percent equity of New Grindr LLC at 93 million U.S. dollars. Headquartered in Los Angeles of the U.S., Grindr is the world's largest social networking service for the homosexuals. Its net profit recorded 660,000 U.S. dollars, 9.75 million U.S. dollars and 13.74 million U.S. dollars during 2012 and 2014, respectively.
TOP
[Financial Reports Express]
○3 companies propose high share conversion and dividend
------
Beijing Shenwu Environment ＆ Energy Technology Corp., controlling shareholder of Shenwu Environmental Technology Co., Ltd. (300156.SZ), proposed a 15-for-10 conversion of capital surplus into shares combined with 1 yuan dividend for every 10 shares in the company's profit distribution plan. Zhuhai Orbita Control Engineering Co., Ltd. (300053.SZ) proposed a 15-for-10 conversion of capital surplus into shares combined with dividend in the company's profit distribution plan. East Group Co., Ltd. (300376.SZ) proposed a 10-for-10 conversion of capital surplus into shares combined with 2.6 yuan dividend for every 10 shares in the company's profit distribution plan.
○Net profit of 3 companies to see multiplied surge
------
Hunan Er-Kang Pharmaceutical Co., Ltd. (300267.SZ) is expected to see a year-on-year growth of 97 -117 percent in net profit mainly owing to the rapid development of its new products. Due to the good performance of its subsidiary Sichuan Zhongwu Hongyu Science and Technology Co., Ltd., Honyu Wear-Resistant New Materials Co., Ltd. (300345.SZ) is predicted to see a year-on-year growth of 294-342 percent in net profit. Net profit of Myhome Real Estate Development Group Co., Ltd. (000667.SZ) is expected to increase by 458-484 percent resulting from the increasing earnings of commercial buildings.
[Trading Trends]
○Haide Industry bought through 5 institutional seats
------
The trading volume ranking list on Jan. 11 shows that Hainan Haide Industry Co., Ltd. (000567.SZ) was bought through five institutional seats with a total of 140 million yuan, accounting for 32.5 percent of its intraday turnover, and it was sold through one institutional seat with a total of 22.146 million yuan.
Comment: The company introduced a private placement plan last December, intending to strip off the real estate assets and deal with the non-performing assets. Institutions believe that as the economic growth pivot goes down, the operation and management business concerning the non-performing assets will see prominent growth in both supply side and demand side. The short-term stimulator is the company obtained the non-performing assets license as scheduled and the long-term stimulator will depend on the increase in the non-performing loan of banking sector.
TOP
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