[Today's Guide]
○MEP initiates institutional reform, investment in environmental protection likely to speed up
○Sinopec raises pyrrolylene price by 12 pct in two days
○Breakthrough achieved in R＆D of zinc-bromine flow battery, propelling development of energy storage industry
○Kingee Culture Development to expand to wearable intelligent products, Jinrui Mineral Development to embark on game business
[SSN Focus]
○MEP initiates institutional reform, investment in environmental protection likely to speed up
------
The Ministry of Environmental Protection (MEP) on March 3 responded on the rumor of adjusting its internal institutions, and indicated that it will not maintain the pollution protection and treatment department and total pollutes emission control department. Three departments for management on atmosphere, water and land have been set under the MEP.
Comment: It marks that a solid step has been taken for institutional reform of the MEP, which is beneficial to better manage and lead the environmental treatment, and fight for pollution protection and treatment related to atmosphere, water and land. Along with successive issuance of Atmosphere and Water Pollution Prevention Action Plans (the "Atmosphere Ten" and "Water Ten") in recent years, relevant key jobs have been obviously speeded up. The MEP also indicated that it will release the "Land Ten" this year and fully implement the action. Among A-share companies, Hebei Sailhero Environmental Protection High-tech Co., Ltd. (300137.SZ) constantly carried out acquisitions last year, stepping into the market nationwide from the north one; Yonker Environmental Protection Co., Ltd. (300187.SZ) gained a net profit growth of 79 percent last year, mainly due to a large number of land repair businesses; Xuzhou Kerong Environmental Resources Co., Ltd. (300152) constantly achieves environmental protection projects based on PPP model.
[SSN Selection]
○The National Energy Administration on March 3 issued the Guidelines on Building Guidance System for Renewable Energy Development and Utilization Target, going to set clear goals for renewable energy development of each province.
○Eight authorities jointly announced that measures including medical detection and mosquito elimination are required to strictly protect China from the Zika virus.
○Yang Chuantang, Minister of Transport, on March 3 indicated that regulations on internet-based car service have been specified, and hope to launch it as soon as possible.
○The offering price of baby chick in Shandong Province soared by nearly 50 percent year on year. The constantly-shrinking capacity in recent years is possibly the factor causing continuous price rising.
○The controlling shareholder of Guotai Junan Securities Co., Ltd. (601211.SH) further determined the plan to increase the shareholdings by no less than 0.5 percent equity of the company's total share capital.
TOP
[Industrial Information]
○Sinopec raises pyrrolylene price by 12 pct in two days
------
SSN learnt from insiders that after the price rise in late February, the sales companies under China Petroleum ＆ Chemical Corporation (Sinopec, SNP.NYSE; SNP.LSE; 00386.HK; 600028.SH) raised the quoted price of pyrrolylene twice on March 1 and 2 by 500 yuan/ton and 300 yuan/tlon, respectively. The current price is 7,300 yuan/ton, representing an increase of 12 percent in two days. It is reported that a pyrrolylene production equipment in Maoming City with an annual capacity of 50,000 tons will suspend operation for overhauls from March 16.
Comment: The industry believed that some pyrrolylene devices in Asia will be suspend operation for long-term overhauls from March. Along with the short supply in the future, the quoted price is expected to continue to jump. Meanwhile, international oil price has constantly increased for three days to support the pyrrolylene market, as the pyrrolylene price is closely linked to oil price. Among the listed companies, Zibo Qixiang Tengda Chemical Co., Ltd. (002408.SZ) and North Huajin Chemical Industries Co., Ltd. (000059.SZ) own the pyrrolylene capacity.
TOP
○Breakthrough achieved in R＆D of zinc-bromine flow battery, propelling development of energy storage industry
------
The Chinese Academy of Sciences (CAS) discloses on its official website on March 3 that the Dalian Institute of Chemical Physics under CAS has achieved new progress in the study of electrode materials for zinc-bromine flow battery. The project was sponsored by units including the National Natural Science Foundation of China. It is introduced that the research team has developed highly ordered mesoporous carbon anode material through structural design. The energy efficiency of single battery applied with above material can exceed 80 percent, overcoming the obstacles from low power density.
Comment: Zinc-bromine flow battery enjoys advantages in high theoretical power density and low cost in electrolyte, thus it sees great prospect in massive application in large-scale energy storage area. The breakthrough achieved in zinc-bromine flow battery will help to boost the development of China's storage battery industry. As to listed companies, the zinc-bromine flow battery products produced by Anhui Meineng Store Energy System Co., Ltd. which is participated by Anhui Sinonet ＆ Xinlong Science＆ Technology Co., Ltd. (002298.SZ) has passed the detection by China Electricity Scientific Research Institute and is qualified to be connected with national power grid. Shandong Lubei Chemical Co., Ltd. (600727.SH) is able to produce bromine.
○Technology giants promote wireless charging technologies for vehicles
------
Tesla recently indicated that it will sell its wireless charging equipment "plug-free charging system" from April this year. The system can fully charge the capacity of Model S in 10 hours. Qualcomm announced at the Mobile World Congress (MWC) held in end-February that it was developing the "dynamic wireless charging" technology, which can automatically charge moving new energy vehicles and even driverless vehicles.
Comment: Compared with charging piles, wireless charging costs less and is developing to replace charging piles. Among A-share companies, ZTE Corporation (00763.HK; 000063.SZ) has invested 3.5 billion yuan in the R＆D of wireless charging technologies for automobiles. Qingdao TGOOD Electric Co., Ltd. (300001.SZ) has introduced wireless charging technologies for Tesla and other models. Shenzhen Clou Electronics Co., Ltd. (002121.SZ) is developing wireless charging technologies for new energy vehicles based on wired charging technologies.
TOP
[Announcement Interpretation]
○Kingee Culture Development to control Guangdong Appscomm to expand to wearable intelligent products
------
Beijing Kingee Culture Development Co., Ltd. (002721.SZ) proposes to acquire 51 percent equities of Guangdong Appscomm Co., Ltd. with 867 million yuan. The counterparty promises a net profit of 150 million yuan, 225 million yuan and 338 million yuan from 2016 to 2018.
Guangdong Appscomm is an innovative technology enterprise focusing on wearable intelligent products and core technologies, cloud platform and application development. The transaction will facilitate the integrated development of the gold and jewelry industry and the wearable intelligent equipment industry.
○Jinrui Mineral Development to acquire Morefun Online Technology to embark on game business
------
Qinghai Jinrui Mineral Development Co., Ltd. plans to purchase 100 percent equities of Chengdu Morefun Online Technology Co., Ltd. by issuing 45.45 million shares to the shareholders of Morefun Online Technology at a price of 11.09 yuan per share through private placement and paying 216 million yuan in cash. The acquisition will totally cost the company 720 million yuan. The company intends to raise supporting funds of 230 million yuan through private placement. The counterparty promises net profit of Morefun Online Technology will be 60 million yuan, 80 million yuan and 100 million yuan during 2016 and 2018 respectively.
The current online game products of Jinrui Mineral Development include Dragon ＆ Elves, Dragon Blade and Fights in Three Kingdoms. Jinrui Mineral Development is going to sell its coal assets business. After the acquisition is done, Jinrui Mineral Development will become an enterprises principally engaged in online games with its controlling shareholders and actual controllers unchanged.
○Zhongyuan Union Cell＆gene Engineering to raise RMB1.5 bln to develop cellular immunotherapy
------
Zhongyuan Union Cell＆gene Engineering Corp., Ltd. (600645.SH) plans to raise 1.5 billion yuan by issuing 50 million shares through private placement with the price on the first issuing day as benchmark. 1.1 billion yuan of the funds will be used to purchase 100 percent equities of Shanghai Claison Bio-tech Co., Ltd. and the remaining 400 million yuan will be used to supplement working capitals of Claison Bio-tech and repay debt.
Claison Bio-tech is specialized in the R＆D of cellular immunotherapy technology and providing cellular immunotherapy technology and services to medical institutions. It has seen increasing business scale in recent three years and provides the cellular immunotherapy technology and services to nearly 30 domestic hospitals for a long period. It gained 296 million yuan in operating revenues and 40.02 million yuan in net profit in 2015.
○3 companies see shareholding increase
------
Li Zongsong, actual controller of Jiangsu Bicon Pharmaceutical Listed Company (002411.SZ) increased his shareholdings in the company by more than 13 million shares during March 1-3. AUX Group, controlling shareholder of Ningbo Sanxing Medical Electric Co., Ltd. (601567.SH), increased its shareholdings in the company by 710,000 shares on March 3. Zhongnan Urban Construction Investment Co., Ltd., substantial shareholder of Jiangsu Zhongnan Construction Group Co., Ltd. (000961.SZ), increased its shareholdings in the company by 370,000 shares on March 3.
○Hi-speed Road＆Bridge signed contract with huge amount
------
Shandong Hi-speed Road＆Bridge Co., Ltd. (000498.SZ) signed the contract of the first and the third segment of Guogao Qinglan expressway from Taian to Dong'e (including the Yellow River Bridge). The contract amount totals 4.13 billion yuan, accounting for over 60 percent of the company's revenues in 2014.
[Financial Reports Express]
○Net profits of Hithink RoyalFlush Information Network to surge in Q1
------
Nett profits of Hithink RoyalFlush Information Network Co., Ltd. (300033.SZ) are expected to grow by 60 percent-120 percent in the first quarter mainly due to the development of major business. Nett profits of Shenzhen Yitoa Intelligent Control Co., Ltd. (300131.SZ) are expected to grow by 6,962 percent-6,992 percent in the first quarter contributed by the profits from equity transfer. Its net profits were only 980,000 yuan in the same period of last year.
○Misho Ecology ＆ Landscape proposes high share conversion and dividend
------
Wang Yingyan, controlling shareholder of Jiangsu Misho Ecology ＆ Landscape Co., Ltd. (300495.SZ), proposes a 20-for-10 conversion of capital surplus into shares combined with 5.8 yuan dividend for every 10 shares in the company's annual report.
[Trading Alarms]
○Chuan Jin Nuo Chemical to launch IPO on March 4
------
Kunming Chuan Jin Nuo Chemical Co., Ltd. (300505.SZ) is going to launch IPO on March at 10.25 yuan per share with an up-limit of 9,000 shares per single account. The P/E ratio is 23 times. Investors who succeed in subscribing the new share should pay on March 8.
TOP
○MEP initiates institutional reform, investment in environmental protection likely to speed up
○Sinopec raises pyrrolylene price by 12 pct in two days
○Breakthrough achieved in R＆D of zinc-bromine flow battery, propelling development of energy storage industry
○Kingee Culture Development to expand to wearable intelligent products, Jinrui Mineral Development to embark on game business
[SSN Focus]
○MEP initiates institutional reform, investment in environmental protection likely to speed up
------
The Ministry of Environmental Protection (MEP) on March 3 responded on the rumor of adjusting its internal institutions, and indicated that it will not maintain the pollution protection and treatment department and total pollutes emission control department. Three departments for management on atmosphere, water and land have been set under the MEP.
Comment: It marks that a solid step has been taken for institutional reform of the MEP, which is beneficial to better manage and lead the environmental treatment, and fight for pollution protection and treatment related to atmosphere, water and land. Along with successive issuance of Atmosphere and Water Pollution Prevention Action Plans (the "Atmosphere Ten" and "Water Ten") in recent years, relevant key jobs have been obviously speeded up. The MEP also indicated that it will release the "Land Ten" this year and fully implement the action. Among A-share companies, Hebei Sailhero Environmental Protection High-tech Co., Ltd. (300137.SZ) constantly carried out acquisitions last year, stepping into the market nationwide from the north one; Yonker Environmental Protection Co., Ltd. (300187.SZ) gained a net profit growth of 79 percent last year, mainly due to a large number of land repair businesses; Xuzhou Kerong Environmental Resources Co., Ltd. (300152) constantly achieves environmental protection projects based on PPP model.
[SSN Selection]
○The National Energy Administration on March 3 issued the Guidelines on Building Guidance System for Renewable Energy Development and Utilization Target, going to set clear goals for renewable energy development of each province.
○Eight authorities jointly announced that measures including medical detection and mosquito elimination are required to strictly protect China from the Zika virus.
○Yang Chuantang, Minister of Transport, on March 3 indicated that regulations on internet-based car service have been specified, and hope to launch it as soon as possible.
○The offering price of baby chick in Shandong Province soared by nearly 50 percent year on year. The constantly-shrinking capacity in recent years is possibly the factor causing continuous price rising.
○The controlling shareholder of Guotai Junan Securities Co., Ltd. (601211.SH) further determined the plan to increase the shareholdings by no less than 0.5 percent equity of the company's total share capital.
TOP
[Industrial Information]
○Sinopec raises pyrrolylene price by 12 pct in two days
------
SSN learnt from insiders that after the price rise in late February, the sales companies under China Petroleum ＆ Chemical Corporation (Sinopec, SNP.NYSE; SNP.LSE; 00386.HK; 600028.SH) raised the quoted price of pyrrolylene twice on March 1 and 2 by 500 yuan/ton and 300 yuan/tlon, respectively. The current price is 7,300 yuan/ton, representing an increase of 12 percent in two days. It is reported that a pyrrolylene production equipment in Maoming City with an annual capacity of 50,000 tons will suspend operation for overhauls from March 16.
Comment: The industry believed that some pyrrolylene devices in Asia will be suspend operation for long-term overhauls from March. Along with the short supply in the future, the quoted price is expected to continue to jump. Meanwhile, international oil price has constantly increased for three days to support the pyrrolylene market, as the pyrrolylene price is closely linked to oil price. Among the listed companies, Zibo Qixiang Tengda Chemical Co., Ltd. (002408.SZ) and North Huajin Chemical Industries Co., Ltd. (000059.SZ) own the pyrrolylene capacity.
TOP
○Breakthrough achieved in R＆D of zinc-bromine flow battery, propelling development of energy storage industry
------
The Chinese Academy of Sciences (CAS) discloses on its official website on March 3 that the Dalian Institute of Chemical Physics under CAS has achieved new progress in the study of electrode materials for zinc-bromine flow battery. The project was sponsored by units including the National Natural Science Foundation of China. It is introduced that the research team has developed highly ordered mesoporous carbon anode material through structural design. The energy efficiency of single battery applied with above material can exceed 80 percent, overcoming the obstacles from low power density.
Comment: Zinc-bromine flow battery enjoys advantages in high theoretical power density and low cost in electrolyte, thus it sees great prospect in massive application in large-scale energy storage area. The breakthrough achieved in zinc-bromine flow battery will help to boost the development of China's storage battery industry. As to listed companies, the zinc-bromine flow battery products produced by Anhui Meineng Store Energy System Co., Ltd. which is participated by Anhui Sinonet ＆ Xinlong Science＆ Technology Co., Ltd. (002298.SZ) has passed the detection by China Electricity Scientific Research Institute and is qualified to be connected with national power grid. Shandong Lubei Chemical Co., Ltd. (600727.SH) is able to produce bromine.
○Technology giants promote wireless charging technologies for vehicles
------
Tesla recently indicated that it will sell its wireless charging equipment "plug-free charging system" from April this year. The system can fully charge the capacity of Model S in 10 hours. Qualcomm announced at the Mobile World Congress (MWC) held in end-February that it was developing the "dynamic wireless charging" technology, which can automatically charge moving new energy vehicles and even driverless vehicles.
Comment: Compared with charging piles, wireless charging costs less and is developing to replace charging piles. Among A-share companies, ZTE Corporation (00763.HK; 000063.SZ) has invested 3.5 billion yuan in the R＆D of wireless charging technologies for automobiles. Qingdao TGOOD Electric Co., Ltd. (300001.SZ) has introduced wireless charging technologies for Tesla and other models. Shenzhen Clou Electronics Co., Ltd. (002121.SZ) is developing wireless charging technologies for new energy vehicles based on wired charging technologies.
TOP
[Announcement Interpretation]
○Kingee Culture Development to control Guangdong Appscomm to expand to wearable intelligent products
------
Beijing Kingee Culture Development Co., Ltd. (002721.SZ) proposes to acquire 51 percent equities of Guangdong Appscomm Co., Ltd. with 867 million yuan. The counterparty promises a net profit of 150 million yuan, 225 million yuan and 338 million yuan from 2016 to 2018.
Guangdong Appscomm is an innovative technology enterprise focusing on wearable intelligent products and core technologies, cloud platform and application development. The transaction will facilitate the integrated development of the gold and jewelry industry and the wearable intelligent equipment industry.
○Jinrui Mineral Development to acquire Morefun Online Technology to embark on game business
------
Qinghai Jinrui Mineral Development Co., Ltd. plans to purchase 100 percent equities of Chengdu Morefun Online Technology Co., Ltd. by issuing 45.45 million shares to the shareholders of Morefun Online Technology at a price of 11.09 yuan per share through private placement and paying 216 million yuan in cash. The acquisition will totally cost the company 720 million yuan. The company intends to raise supporting funds of 230 million yuan through private placement. The counterparty promises net profit of Morefun Online Technology will be 60 million yuan, 80 million yuan and 100 million yuan during 2016 and 2018 respectively.
The current online game products of Jinrui Mineral Development include Dragon ＆ Elves, Dragon Blade and Fights in Three Kingdoms. Jinrui Mineral Development is going to sell its coal assets business. After the acquisition is done, Jinrui Mineral Development will become an enterprises principally engaged in online games with its controlling shareholders and actual controllers unchanged.
○Zhongyuan Union Cell＆gene Engineering to raise RMB1.5 bln to develop cellular immunotherapy
------
Zhongyuan Union Cell＆gene Engineering Corp., Ltd. (600645.SH) plans to raise 1.5 billion yuan by issuing 50 million shares through private placement with the price on the first issuing day as benchmark. 1.1 billion yuan of the funds will be used to purchase 100 percent equities of Shanghai Claison Bio-tech Co., Ltd. and the remaining 400 million yuan will be used to supplement working capitals of Claison Bio-tech and repay debt.
Claison Bio-tech is specialized in the R＆D of cellular immunotherapy technology and providing cellular immunotherapy technology and services to medical institutions. It has seen increasing business scale in recent three years and provides the cellular immunotherapy technology and services to nearly 30 domestic hospitals for a long period. It gained 296 million yuan in operating revenues and 40.02 million yuan in net profit in 2015.
○3 companies see shareholding increase
------
Li Zongsong, actual controller of Jiangsu Bicon Pharmaceutical Listed Company (002411.SZ) increased his shareholdings in the company by more than 13 million shares during March 1-3. AUX Group, controlling shareholder of Ningbo Sanxing Medical Electric Co., Ltd. (601567.SH), increased its shareholdings in the company by 710,000 shares on March 3. Zhongnan Urban Construction Investment Co., Ltd., substantial shareholder of Jiangsu Zhongnan Construction Group Co., Ltd. (000961.SZ), increased its shareholdings in the company by 370,000 shares on March 3.
○Hi-speed Road＆Bridge signed contract with huge amount
------
Shandong Hi-speed Road＆Bridge Co., Ltd. (000498.SZ) signed the contract of the first and the third segment of Guogao Qinglan expressway from Taian to Dong'e (including the Yellow River Bridge). The contract amount totals 4.13 billion yuan, accounting for over 60 percent of the company's revenues in 2014.
[Financial Reports Express]
○Net profits of Hithink RoyalFlush Information Network to surge in Q1
------
Nett profits of Hithink RoyalFlush Information Network Co., Ltd. (300033.SZ) are expected to grow by 60 percent-120 percent in the first quarter mainly due to the development of major business. Nett profits of Shenzhen Yitoa Intelligent Control Co., Ltd. (300131.SZ) are expected to grow by 6,962 percent-6,992 percent in the first quarter contributed by the profits from equity transfer. Its net profits were only 980,000 yuan in the same period of last year.
○Misho Ecology ＆ Landscape proposes high share conversion and dividend
------
Wang Yingyan, controlling shareholder of Jiangsu Misho Ecology ＆ Landscape Co., Ltd. (300495.SZ), proposes a 20-for-10 conversion of capital surplus into shares combined with 5.8 yuan dividend for every 10 shares in the company's annual report.
[Trading Alarms]
○Chuan Jin Nuo Chemical to launch IPO on March 4
------
Kunming Chuan Jin Nuo Chemical Co., Ltd. (300505.SZ) is going to launch IPO on March at 10.25 yuan per share with an up-limit of 9,000 shares per single account. The P/E ratio is 23 times. Investors who succeed in subscribing the new share should pay on March 8.
TOP
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