[Today's Guide]
○Listing of various express magnates pushes intelligent logistics development
○iPhone7 chip provider begins to prepare for production; wireless charging likely to become highlight
○Medical robot of Truking Technology rolls off production line, becoming new contributor to profit
○Chunxing Precision Mechanical to invest in mobile communication with RMB1.57 bln through private placement, Energas Gas-system and other two firms propose high share conversion
[SSN Focus]
○Listing of various express magnates pushes intelligent logistics development
------
According to media report, SF Express Co., Ltd., China's largest private express company, proposes to apply for IPO in domestic securities market, and Shanghai ZTO Express (Logistics) Co., Ltd., another express magnate, proposes to carry out the financing of 1 to 2 billion U.S. dollars in America. Previously, Shanghai STO Express (Logistics) Co., Ltd. was evaluated 16.9 billion yuan, and conducted backdoor listing through Zhejiang IDC Fluid Control Co., Ltd. (002468.SZ), with evaluation premium reaching 7.5 times. Shanghai YTO Express (Logistics) Co., Ltd. also announced to conduct backdoor listing by Dalian Dayang Trands Co., Ltd. (600233.SH), with evaluation likely to exceed 20 billion yuan.
Comment: Express magnates carry out listing and financing one by one, pushing the industrial development. In line with Several Opinions on Enhancing Express Industrial Development released by the State Council, its annual business volume will reach 50 billion units by 2020, with business revenue of 800 billion yuan. Sub-industries including intelligent logistics will see accelerated development opportunity. In terms of listed companies, Shanxi Oriental Material Handling Co., Ltd. (300486.SZ) gains strong competitiveness in the market of logistics transportation and intelligent logistics storage; Shanghai Yongli Belting Co., Ltd. (300230.SZ), mainly engaged in light conveyor belt business, invested in Shanghai Xinba Automatic Technology Co., Ltd., so that to hold 51 percent equities of the company and become its controller, stepping into intelligent sorting industry of 100 billion yuan.
[SSN Selection]
○China's central bank mentioned that assessment results of oriented reserve requirement ratio cut vary, nothing to do with growth rate of newly-added loan or macro careful evaluation.
○The Ministry of Finance issued a notice to adjust the preferential policy on contract tax and business tax of real estate transaction, and the following polices are expected to issue for real estate de-stock.
○A document on urban planning and construction management has been issued, proposing development goals in terms of building energy efficiency, sewage and atmosphere treatment, urban intelligent management and etc.
○Based on piaofang.maoyan.com, box office of The Mermaid has reached 2.72 billion yuan up to 8 p.m. of Feb. 21, making it the No. 1 among films of China's mainland.
○Yonhap News Agency on Feb. 20 reported that Samsung Electronics Co. Ltd. proposes to push out Samsung payment service in China during this March.
TOP
[Industrial Information]
○iPhone7 chip provider begins to prepare for production; wireless charging likely to become highlight
------
Based on information of technology media in Taiwan, iPhone7 chip provider has started to book the capacity of foundries and after-end cooperation partners. iPhone7 will be thinner than the existing iPhones, cancel the headphone jack of 3.5mm, and provide a dual-camera module. According to another source, Apple Inc.
(AAPL.NASDAQ) has determined to cooperate with Engerous, whose patented technology can make wireless charging available within 15 inches (about 4.57 meters) for iPhone users. Stock price of Engerous accumulatively soared by 41 percent last week.
Comment: Once radius of available space can reach several meters for wireless charging, users' experience will be obviously improved, which could also open the application space of electro-mobile charging pile. Various A-share companies have deployed in wireless charging field in advance. Wireless charging modules of Luxshare Precision Industry Co., Ltd. (002475.SZ) is used for iWatch. Shenzhen Sunlord Electronics Co., Ltd. (002138.SZ) is positively pushing out wireless charging products into the market.
○TCM to see rapid development with intensive policy supports
------
China will focus on promoting the innovation and upgrading in the medicine, take measures to further promote the development of traditional Chinese medicine (TCM) and develop TCM healthcare services and add moreChinese patent medicines into the national essential medicine list, according to the executive meeting of the State Council on Feb. 14. The national TCM working conference held in January proposed to make great efforts to prepare and implement the Traditional Chinese Medicine Development Strategy and Plan (from 2016 to 2030), vigorously develop TCM healthcare service and promote to legalizing TCM.
As the Traditional Chinese Medicine Development Strategy and Plan is under preparation and the TCM law is issued, the TCM industry needs further release. This will post opportunities for relevant companies to expand. In terms of companies, Beijing Tongrentang Co., Ltd. (600085.SH) is a leading TCM brand in China. It owns a great number of prestigious TCM brands; Guizhou Xinbang Pharmaceutical Co., Ltd. (002390.SZ) is rather competitive in Chinese patent medicine. It is now building hierarchical medical system and other medical service platforms.
TOP
[Companies Hotspot]
○Medical robot of Truking Technology rolls off production line, becoming new contributor to profit
------
The first China-made intelligent robot with asepsis production, which was developed by Truking Technology Limited (300358.SZ), rolled off production line on Feb. 20. It is introduced that this robot is able to unpack prefilled syringes and conduct material transfer. At present, only a few countries are able to manufacture this kind of robot, which is priced at about 8 million yuan. Truking Technology fixes its price at 5 million yuan and aims to sell 15 to 20 robots this year with a gross profit rate of 50 percent. In addition, another two types of robots of the company will debut in 2016.
Comment: This product is the first achievement that the company shifts its business into intelligent manufacturing field. The company will introduce wearable exoskeleton robot, intelligent medical robot and wisdom pharmaceutical plant. Robot business is expected to be a new contributor to the company's profit growth this year.
TOP
[Announcement Interpretation]
○Chunxing Precision Mechanical to invest in mobile communication with RMB1.57 bln through private placement
------
Suzhou Chunxing Precision Mechanical Co., Ltd. (002547.SZ) plans to raise 1.57 billion yuan by issuing 165 million shares through private placement at a price of 9.54 yuan per share. The fundraising will be used for building a project with an annual production of 1.15 million units of mobile communication radio frequency devices, building a project which annually produces 4.7 million units of intelligent interconnecting devices, increasing investment in Chunxing leasing to conduct financial leasing business and supplementing working capital.
○Y.U.D. Yangtze River Investment Industry plans to acquire Zhongtian Rocket Technology
------
Shanghai Changwang Meteotech Co., Ltd., a wholly-owned subsidiary of Y.U.D. Yangtze River Investment Industry Co., Ltd. (600119.SH), plans to purchase 100 percent equities of Shaanxi Zhongtian Rocket Technology Co., Ltd. from the Academy of Aerospace Solid Propulsion Technology and its persons acting in concert through issuing shares or issuing shares plus part payment in cash.
Comment: As a subsidiary under the central enterprise China Aerospace Science and Technology Corporation, Zhongtian Rocket Technology is strong in R＆D capability. Changwang Meteotech boasts rich experience in manufacturing industry and has been listed in the New Third Board. The alliance between the two powerful companies is expected to bring rapid development to them.
○Water Business Doctor saw significant shareholding increase
------
Wang Piaoyang, actual controller of Beijing Water Business Doctor Co., Ltd. (300055.SZ), increased his shareholding in the company by 6.1 million shares worth 110 million yuan during Feb. 18-19.
[Financial Reports Express]
○Energas Gas-system and other two firms propose high share conversion
------
Dalian Energas Investment Co., Ltd., controlling shareholder of Dalian Energas Gas-system Co., Ltd. (603318.SH), proposes a 10-for-10 conversion of capital surplus into shares combined with dividend; Tao Jun, actual controller of Tianshui Zhongxing Bio-technology Co., Ltd. (002772.SZ), proposes a 11-for-10 conversion of capital surplus into shares combined with 1.1 yuan dividend for every 10 shares; Shenzhen Hepalink Pharmaceutical Co., Ltd. (002399.SZ) forecasts a performance growth of 80 percent in its annual report and proposes a 6-for-10 conversion of capital surplus into shares combined with 6 yuan dividend for every 10 shares.
[Data Speaks]
○Stocks engaged in electrical equipment preferred by social security fund
------
According to statistics by SSN, the social security fund prefers stocks involved in industries like electrical equipment, leisure service, chemicals and etc. Excluding factors like high share conversion, the positions of the social security fund in aforesaid industries increased by 86.21 percent, 26.95 percent and 21.08 percent respectively by the end of the third quarter of 2015 compared with that of last term. In addition, the 2015 annual reports show that the social security fund increased its positions in Beijing Jingxi Culture ＆ Tourism Co., Ltd. (000802.SZ) and Shenzhen Sunshine Laser ＆ Electronics Technology Co., Ltd. (300227.SZ) by 155 percent and 29 percent, respectively. At present, the stock prices are lower than its cost prices.
[Trading Trends]
○Newcapec Electronics bought by five institutions
------
The trading volume ranking list on Feb. 19 shows that Newcapec Electronics Co., Ltd. (300248.SZ) was bought by five institutions with a total of 203 million yuan, accounting for 29.87 percent of its intraday turnover. Another two institutions sold the stock with 31.51 million yuan.
Comment: Apple Inc. officially launched its mobile payment service Apple Pay in China on Feb.18 and the number of users rocketed. Insiders point out that the numerous Apple users are young in age and sees relatively high level of consumption. Compared with payment through QR codes, Apple Pay is safer and more convenient. Institutions believe that Newcapec Electronics takes a lead in developing NFC-related applications on mobile phone clients and cards. The NFC fervor raised by Apple Pay might help to change users' habit in payment and boost the company's Internet strategy.
[Weekly Review]
○Happiness is within touch
------
Chinese investors might be those who concern the most about their country and people. Many people pay close attentions to leaders' movement and study carefully about the central bank's monetary policies ever since they enter the stock market. News like the up-valuation/devaluation of exchange rates, the surge/decrease of crude oil, the outbreak of bird flu, the raging El Nino and etc. always stir Chinese investors' worries.
It's not our mission to save the earth, and to gain a profit from investment does not mean that we have to know everything. We might as well turn back to corporate value again and focus on public information that directly impacts performance trends, by then long-term profit will be within our touch.
Titanium dioxide and vitamin enjoy price hike since the beginning of the year. One reason behind the price hike is that manufacturers abroad raise the price first, and another is that since the industrial concentration has been improved greatly, relevant A-share companies are able to maintain higher profit. SSN repeatedly reported the price trend of these chemicals earlier. Visit professional websites more to get deeper knowledge about the development trend of the industry.
With regard to the upstream of the new energy vehicles industrial chain, lithium ores come into the mind of many people. Stocks related to lithium ores including Sichuan Tianqi Lithium Industries, Inc. (002466.SZ) indeed have surged greatly since the second half of last year. As Wuxi Lead Intelligent Equipment Co., Ltd. (300450.SZ) forecast a large performance growth in the first quarter and Shenzhen Yinghe Technology Co., Ltd. (300457.SZ) inked big order with Guoxuan High-Tech Co., Ltd. (002074.SZ) in recent period, the production equipment for lithium battery also emerges as another sector to benefit from the booming new energy vehicle industry. SSN will strive to find you more opportunities from numerous announcements!
TOP
○Listing of various express magnates pushes intelligent logistics development
○iPhone7 chip provider begins to prepare for production; wireless charging likely to become highlight
○Medical robot of Truking Technology rolls off production line, becoming new contributor to profit
○Chunxing Precision Mechanical to invest in mobile communication with RMB1.57 bln through private placement, Energas Gas-system and other two firms propose high share conversion
[SSN Focus]
○Listing of various express magnates pushes intelligent logistics development
------
According to media report, SF Express Co., Ltd., China's largest private express company, proposes to apply for IPO in domestic securities market, and Shanghai ZTO Express (Logistics) Co., Ltd., another express magnate, proposes to carry out the financing of 1 to 2 billion U.S. dollars in America. Previously, Shanghai STO Express (Logistics) Co., Ltd. was evaluated 16.9 billion yuan, and conducted backdoor listing through Zhejiang IDC Fluid Control Co., Ltd. (002468.SZ), with evaluation premium reaching 7.5 times. Shanghai YTO Express (Logistics) Co., Ltd. also announced to conduct backdoor listing by Dalian Dayang Trands Co., Ltd. (600233.SH), with evaluation likely to exceed 20 billion yuan.
Comment: Express magnates carry out listing and financing one by one, pushing the industrial development. In line with Several Opinions on Enhancing Express Industrial Development released by the State Council, its annual business volume will reach 50 billion units by 2020, with business revenue of 800 billion yuan. Sub-industries including intelligent logistics will see accelerated development opportunity. In terms of listed companies, Shanxi Oriental Material Handling Co., Ltd. (300486.SZ) gains strong competitiveness in the market of logistics transportation and intelligent logistics storage; Shanghai Yongli Belting Co., Ltd. (300230.SZ), mainly engaged in light conveyor belt business, invested in Shanghai Xinba Automatic Technology Co., Ltd., so that to hold 51 percent equities of the company and become its controller, stepping into intelligent sorting industry of 100 billion yuan.
[SSN Selection]
○China's central bank mentioned that assessment results of oriented reserve requirement ratio cut vary, nothing to do with growth rate of newly-added loan or macro careful evaluation.
○The Ministry of Finance issued a notice to adjust the preferential policy on contract tax and business tax of real estate transaction, and the following polices are expected to issue for real estate de-stock.
○A document on urban planning and construction management has been issued, proposing development goals in terms of building energy efficiency, sewage and atmosphere treatment, urban intelligent management and etc.
○Based on piaofang.maoyan.com, box office of The Mermaid has reached 2.72 billion yuan up to 8 p.m. of Feb. 21, making it the No. 1 among films of China's mainland.
○Yonhap News Agency on Feb. 20 reported that Samsung Electronics Co. Ltd. proposes to push out Samsung payment service in China during this March.
TOP
[Industrial Information]
○iPhone7 chip provider begins to prepare for production; wireless charging likely to become highlight
------
Based on information of technology media in Taiwan, iPhone7 chip provider has started to book the capacity of foundries and after-end cooperation partners. iPhone7 will be thinner than the existing iPhones, cancel the headphone jack of 3.5mm, and provide a dual-camera module. According to another source, Apple Inc.
(AAPL.NASDAQ) has determined to cooperate with Engerous, whose patented technology can make wireless charging available within 15 inches (about 4.57 meters) for iPhone users. Stock price of Engerous accumulatively soared by 41 percent last week.
Comment: Once radius of available space can reach several meters for wireless charging, users' experience will be obviously improved, which could also open the application space of electro-mobile charging pile. Various A-share companies have deployed in wireless charging field in advance. Wireless charging modules of Luxshare Precision Industry Co., Ltd. (002475.SZ) is used for iWatch. Shenzhen Sunlord Electronics Co., Ltd. (002138.SZ) is positively pushing out wireless charging products into the market.
○TCM to see rapid development with intensive policy supports
------
China will focus on promoting the innovation and upgrading in the medicine, take measures to further promote the development of traditional Chinese medicine (TCM) and develop TCM healthcare services and add moreChinese patent medicines into the national essential medicine list, according to the executive meeting of the State Council on Feb. 14. The national TCM working conference held in January proposed to make great efforts to prepare and implement the Traditional Chinese Medicine Development Strategy and Plan (from 2016 to 2030), vigorously develop TCM healthcare service and promote to legalizing TCM.
As the Traditional Chinese Medicine Development Strategy and Plan is under preparation and the TCM law is issued, the TCM industry needs further release. This will post opportunities for relevant companies to expand. In terms of companies, Beijing Tongrentang Co., Ltd. (600085.SH) is a leading TCM brand in China. It owns a great number of prestigious TCM brands; Guizhou Xinbang Pharmaceutical Co., Ltd. (002390.SZ) is rather competitive in Chinese patent medicine. It is now building hierarchical medical system and other medical service platforms.
TOP
[Companies Hotspot]
○Medical robot of Truking Technology rolls off production line, becoming new contributor to profit
------
The first China-made intelligent robot with asepsis production, which was developed by Truking Technology Limited (300358.SZ), rolled off production line on Feb. 20. It is introduced that this robot is able to unpack prefilled syringes and conduct material transfer. At present, only a few countries are able to manufacture this kind of robot, which is priced at about 8 million yuan. Truking Technology fixes its price at 5 million yuan and aims to sell 15 to 20 robots this year with a gross profit rate of 50 percent. In addition, another two types of robots of the company will debut in 2016.
Comment: This product is the first achievement that the company shifts its business into intelligent manufacturing field. The company will introduce wearable exoskeleton robot, intelligent medical robot and wisdom pharmaceutical plant. Robot business is expected to be a new contributor to the company's profit growth this year.
TOP
[Announcement Interpretation]
○Chunxing Precision Mechanical to invest in mobile communication with RMB1.57 bln through private placement
------
Suzhou Chunxing Precision Mechanical Co., Ltd. (002547.SZ) plans to raise 1.57 billion yuan by issuing 165 million shares through private placement at a price of 9.54 yuan per share. The fundraising will be used for building a project with an annual production of 1.15 million units of mobile communication radio frequency devices, building a project which annually produces 4.7 million units of intelligent interconnecting devices, increasing investment in Chunxing leasing to conduct financial leasing business and supplementing working capital.
○Y.U.D. Yangtze River Investment Industry plans to acquire Zhongtian Rocket Technology
------
Shanghai Changwang Meteotech Co., Ltd., a wholly-owned subsidiary of Y.U.D. Yangtze River Investment Industry Co., Ltd. (600119.SH), plans to purchase 100 percent equities of Shaanxi Zhongtian Rocket Technology Co., Ltd. from the Academy of Aerospace Solid Propulsion Technology and its persons acting in concert through issuing shares or issuing shares plus part payment in cash.
Comment: As a subsidiary under the central enterprise China Aerospace Science and Technology Corporation, Zhongtian Rocket Technology is strong in R＆D capability. Changwang Meteotech boasts rich experience in manufacturing industry and has been listed in the New Third Board. The alliance between the two powerful companies is expected to bring rapid development to them.
○Water Business Doctor saw significant shareholding increase
------
Wang Piaoyang, actual controller of Beijing Water Business Doctor Co., Ltd. (300055.SZ), increased his shareholding in the company by 6.1 million shares worth 110 million yuan during Feb. 18-19.
[Financial Reports Express]
○Energas Gas-system and other two firms propose high share conversion
------
Dalian Energas Investment Co., Ltd., controlling shareholder of Dalian Energas Gas-system Co., Ltd. (603318.SH), proposes a 10-for-10 conversion of capital surplus into shares combined with dividend; Tao Jun, actual controller of Tianshui Zhongxing Bio-technology Co., Ltd. (002772.SZ), proposes a 11-for-10 conversion of capital surplus into shares combined with 1.1 yuan dividend for every 10 shares; Shenzhen Hepalink Pharmaceutical Co., Ltd. (002399.SZ) forecasts a performance growth of 80 percent in its annual report and proposes a 6-for-10 conversion of capital surplus into shares combined with 6 yuan dividend for every 10 shares.
[Data Speaks]
○Stocks engaged in electrical equipment preferred by social security fund
------
According to statistics by SSN, the social security fund prefers stocks involved in industries like electrical equipment, leisure service, chemicals and etc. Excluding factors like high share conversion, the positions of the social security fund in aforesaid industries increased by 86.21 percent, 26.95 percent and 21.08 percent respectively by the end of the third quarter of 2015 compared with that of last term. In addition, the 2015 annual reports show that the social security fund increased its positions in Beijing Jingxi Culture ＆ Tourism Co., Ltd. (000802.SZ) and Shenzhen Sunshine Laser ＆ Electronics Technology Co., Ltd. (300227.SZ) by 155 percent and 29 percent, respectively. At present, the stock prices are lower than its cost prices.
[Trading Trends]
○Newcapec Electronics bought by five institutions
------
The trading volume ranking list on Feb. 19 shows that Newcapec Electronics Co., Ltd. (300248.SZ) was bought by five institutions with a total of 203 million yuan, accounting for 29.87 percent of its intraday turnover. Another two institutions sold the stock with 31.51 million yuan.
Comment: Apple Inc. officially launched its mobile payment service Apple Pay in China on Feb.18 and the number of users rocketed. Insiders point out that the numerous Apple users are young in age and sees relatively high level of consumption. Compared with payment through QR codes, Apple Pay is safer and more convenient. Institutions believe that Newcapec Electronics takes a lead in developing NFC-related applications on mobile phone clients and cards. The NFC fervor raised by Apple Pay might help to change users' habit in payment and boost the company's Internet strategy.
[Weekly Review]
○Happiness is within touch
------
Chinese investors might be those who concern the most about their country and people. Many people pay close attentions to leaders' movement and study carefully about the central bank's monetary policies ever since they enter the stock market. News like the up-valuation/devaluation of exchange rates, the surge/decrease of crude oil, the outbreak of bird flu, the raging El Nino and etc. always stir Chinese investors' worries.
It's not our mission to save the earth, and to gain a profit from investment does not mean that we have to know everything. We might as well turn back to corporate value again and focus on public information that directly impacts performance trends, by then long-term profit will be within our touch.
Titanium dioxide and vitamin enjoy price hike since the beginning of the year. One reason behind the price hike is that manufacturers abroad raise the price first, and another is that since the industrial concentration has been improved greatly, relevant A-share companies are able to maintain higher profit. SSN repeatedly reported the price trend of these chemicals earlier. Visit professional websites more to get deeper knowledge about the development trend of the industry.
With regard to the upstream of the new energy vehicles industrial chain, lithium ores come into the mind of many people. Stocks related to lithium ores including Sichuan Tianqi Lithium Industries, Inc. (002466.SZ) indeed have surged greatly since the second half of last year. As Wuxi Lead Intelligent Equipment Co., Ltd. (300450.SZ) forecast a large performance growth in the first quarter and Shenzhen Yinghe Technology Co., Ltd. (300457.SZ) inked big order with Guoxuan High-Tech Co., Ltd. (002074.SZ) in recent period, the production equipment for lithium battery also emerges as another sector to benefit from the booming new energy vehicle industry. SSN will strive to find you more opportunities from numerous announcements!
TOP
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