[Today's Guide]
○ VA prices up 60 pct, vitamin continues to boom
○ Tencent invests in Douyu TV, online game broadcasting platform to show values
○ Sanju Environmental Protection ＆ New Materials expects growth in Q1, Ping An Insurance reported net profits growth
○ Zbd Pharmaceutical to expand medicine circulation, Tongrun Equipment Technology to expand main business
[SSN Focus]
○ VA prices up 60 pct, vitamin continues to boom
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SSN learnt that Zhejiang NHU Co., Ltd. (002001.SZ) again raised the quoted price of VA due to tight supply in the market. The latest price is 295 yuan per kilogram, up by 64 percent. The company raised the VA quoted price by 80 percent to 180 yuan per kilogram on January 19. Driven by the price lift made by NHU, other VA dealers also raise their quoted prices to 280 yuan per kilogram; some even quote at above 200 yuan per kilogram. The VE price rose by nearly 10 percent in the latest one week. Prices of VB2 and VD3 went up.
Comment: It is learnt that the lift-off of VA prices was mainly due to the tight supply in the market. The global VA giant Royal DSM has not resumed production. The demand for fodders are rising and vitamin accounts for a low proportion in the total cost. So downstream enterprises will easily accept the price hike. In terms of companies, Xiamen Kingdomway Group Company (002626.SZ) ranks first in the VA and VD3 market. Zhejiang Medicine Co., Ltd. (600216.SH) owns 15 million tons of VA capacity and nearly 40,000 tons of VE capacity. There is a large room for its earnings to rise benefiting from rising VE prices. Hubei Guangji Pharmaceutical Co., Ltd. (000952.SZ) is a leader in VB2 and owns about 4,800 tons of VB2 capacity.
[SSN Selection]
○ The draft 13th Five-Year Plan will omit "setting a new board for strategic emerging industries" and add "issuing electronic invoice", the Beijing Evening News reported.
○ The State Council of China released on March 15 a guidance on deepening cooperation in the Pan-Pearl River Delta regions, proposing to construct more railways.
○ Chen Zhenggao, China's Minister of Housing and Urban-Rural Development, said on March 15 that the ministry has made certain achievements in stabilizing the first and second-tier cities, and there is a large potential for farmer workers to buy houses in cities and towns.
○ The number of new stock investors continued to grow last week for a fourth week. But the proportion of investors making transactions slumped by 2.72 percentage points on a monthly basis.
○ China Merchants Group and Sinotrans ＆ CSC Holdings Co. Ltd. on March 15 summoned up a conference for leaders for reorganization. The head of the State-owned Assets Supervision and Administration Commission proposed taking time to prepare reorganization plans.
TOP
[Industry Information]
○ Tencent invests in Douyu TV, online game broadcasting platform to show values
------
Douyu TV, a online game broadcasting website, announces completing a new round of financing worth 100 million U.S. dollars (about 670 million yuan), Tech.qq.com reported. Tencent invested 400 million yuan. Informed persons disclosed that in order to reach a strategic cooperation with Tencent, Douyu TV refused higher-valued proposals made by several mainstream venture capital. The two will conduct in-depth cooperation in copyright and resources.
Comment: Institutes predict that the e-sports market in China is expected to exceed 100 million yuan in 2016 and maintain a growth of more than 20 percent in the next three years. Previously Tencent invested in another large broadcasting platform www.longzhu.com. Its investment in Douyu this time shows its recognition of the value of online broadcasting platform. Among listed companies, Shanghai U9 Game Co., Ltd. (600652.SH) announced last year that it proposed to buy 21 percent equities of Suzhoue Youshi Network Technology Co., Ltd., operator of www.longzhu.com. ZheJiang Daily Media Group Co., Ltd. (600633.SH) owns the online broadcasting platform www.zhanqi.tv.
TOP
[Financial Reports Express]
○ Sanju Environmental Protection ＆ New Materials expects growth in Q1
------
Beijing Sanju Environmental Protection ＆ New Materials Co., ltd. (300072.SZ) reported 104 percent growth and proposes 5-for-10 conversion of capital surplus into shares combined with 2 yuan dividend for every 10 shares according to its annual report. Its Q1 report expects 91 to 110 percent growth, primarily to substantial growth in sales. Guangdong Hongteo Accurate Technology Co., Ltd. (300176.SZ) reported 140 percent growth in its annual report, and expect 125 to 152 percent growth in the Q1 report, primarily attributable to the release of production capacity. Shanghai RAAS Blood Products Co., Ltd. (002252.SZ) reported 182 percent growth in net profits in its annual report.
○ Ping An Insurance reported about 40 pct net profits growth in annual report
------
The first annual report of insurance stock disclosed. Ping An Insurance (Group) Company Of China, Ltd. (601318.SH) recorded 54.2 billion yuan net profits last year, increased by 38 percent than the previous year; the total investment yield saw record breaking 7.8 percent in recent years, up 2.7 percentage points year on year; the number of Internet user reached 242 million, up 75.9 percent from the beginning of the year; the earnings per share is 2.98 yuan, and cash dividend per share proposed to be distributed is 0.35 yuan per share. The company's traditional core financial business is expected to be continuously rosy, and its Internet financial business started to see explosive growth.
○ UTour International Travel Service proposes high share conversion and dividend
------。
Beijing UTour International Travel Service Co., Ltd. (002707.SZ) reported 72 percent growth in its annual report and proposes 10-for-10 conversion of capital surplus into shares combined with 0.5 yuan dividend for every 10 shares according to its annual report.
TOP
[Announcement Interpretation]
○ Zbd Pharmaceutical to raise 2 billion yuan to expand medicine circulation
------
Heilongjiang Zbd Pharmaceutical Co., Ltd. (603567.SH) proposes to issue 5,814 shares through private placement at no less than 34.49 yuan per share to raise 2,005 million yuan, which will be used for traditional Chinese medicine commodity exchange center projects in Bozhou City, Anhui Province. Lin Chuangda, actual controller of the company proposes to subscribe up to 200 million yuan. The company indicated that the private placement will promote the company to consolidated the whole industry chain service system of traditional Chinese medicine, and enhance its profitability and market competitiveness.
○ Tongrun Equipment Technology to expand main business through private placement
------
Jiangsu Tongrun Equipment Technology Co., Ltd. (002150.SZ) proposes to issue 48 million shares through private placement to raise about 384 million yuan, which will be used for the expansion of professional tool cabinet, technology center upgrading project, information system upgrading project and supplementing working capital.
○ Xinyangfeng Fertilizer negotiates to purchase controlling rights of high-tech company in green agriculture field
------
Hubei Xinyangfeng Fertilizer Co., Ltd. (000902.SZ) proposes to acquire a leading domestic modernized green ecological agriculture high-tech company. The entire equity of the target company is valued at 1 billion yuan, and Xinyangfeng proposes to buy 51 percent by cash payment. The target company develop and provide comprehensive solutions and services such as seed breeding, soil improvement, trickle irrigation, water and fertilizer integration automatic control system, the Internet of Things of agriculture and agricultural facility engineering.
○ Anhui Sierte Fertilizer Industry to control phosphorite mine
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Anhui Sierte Fertilizer Industry LTD., company (002538.SZ) proposes to acquire 55 percent equity of Guizhou Zhengli Mine Co., Ltd. with 71,500,000 yuan. Major assets of Zhengli Mine is the mining rights in Pingan Phosphorite Mine No.2 mine in Jinzhong Town, Kaiyang County. Net profits of the mine are 33,970,000 yuan, 11,200,000 yuan and 15,940,000 yuan respectively from 2013 to 2015. Such acquisition can guarantee the supply of main raw phosphorite ore, and also create conditions for the company to expand the market in southwestern China.
○ Controlling shareholder increased shareholding in Youngor Group
------
Controlling shareholder of Youngor Group Co., Ltd. (600177.SH) on March 15 increased holding 3.8 million shares in the company. Substantial shareholder of Jiangsu Zhongnan Construction Group Co., Ltd. (000961.SZ) on March 15b increased holding 1.46 million shares in the company. Chongqing Yufu Group, Shareholder of Southwest Securities Co., Ltd. (600369.SH) increased holding 49 million shares in the company from Feb. 15 to March 11. Industrial Securities Co., Ltd. (601377.SH) announced that the company bought back 67 million shares as of March 14.
TOP
○ VA prices up 60 pct, vitamin continues to boom
○ Tencent invests in Douyu TV, online game broadcasting platform to show values
○ Sanju Environmental Protection ＆ New Materials expects growth in Q1, Ping An Insurance reported net profits growth
○ Zbd Pharmaceutical to expand medicine circulation, Tongrun Equipment Technology to expand main business
[SSN Focus]
○ VA prices up 60 pct, vitamin continues to boom
------
SSN learnt that Zhejiang NHU Co., Ltd. (002001.SZ) again raised the quoted price of VA due to tight supply in the market. The latest price is 295 yuan per kilogram, up by 64 percent. The company raised the VA quoted price by 80 percent to 180 yuan per kilogram on January 19. Driven by the price lift made by NHU, other VA dealers also raise their quoted prices to 280 yuan per kilogram; some even quote at above 200 yuan per kilogram. The VE price rose by nearly 10 percent in the latest one week. Prices of VB2 and VD3 went up.
Comment: It is learnt that the lift-off of VA prices was mainly due to the tight supply in the market. The global VA giant Royal DSM has not resumed production. The demand for fodders are rising and vitamin accounts for a low proportion in the total cost. So downstream enterprises will easily accept the price hike. In terms of companies, Xiamen Kingdomway Group Company (002626.SZ) ranks first in the VA and VD3 market. Zhejiang Medicine Co., Ltd. (600216.SH) owns 15 million tons of VA capacity and nearly 40,000 tons of VE capacity. There is a large room for its earnings to rise benefiting from rising VE prices. Hubei Guangji Pharmaceutical Co., Ltd. (000952.SZ) is a leader in VB2 and owns about 4,800 tons of VB2 capacity.
[SSN Selection]
○ The draft 13th Five-Year Plan will omit "setting a new board for strategic emerging industries" and add "issuing electronic invoice", the Beijing Evening News reported.
○ The State Council of China released on March 15 a guidance on deepening cooperation in the Pan-Pearl River Delta regions, proposing to construct more railways.
○ Chen Zhenggao, China's Minister of Housing and Urban-Rural Development, said on March 15 that the ministry has made certain achievements in stabilizing the first and second-tier cities, and there is a large potential for farmer workers to buy houses in cities and towns.
○ The number of new stock investors continued to grow last week for a fourth week. But the proportion of investors making transactions slumped by 2.72 percentage points on a monthly basis.
○ China Merchants Group and Sinotrans ＆ CSC Holdings Co. Ltd. on March 15 summoned up a conference for leaders for reorganization. The head of the State-owned Assets Supervision and Administration Commission proposed taking time to prepare reorganization plans.
TOP
[Industry Information]
○ Tencent invests in Douyu TV, online game broadcasting platform to show values
------
Douyu TV, a online game broadcasting website, announces completing a new round of financing worth 100 million U.S. dollars (about 670 million yuan), Tech.qq.com reported. Tencent invested 400 million yuan. Informed persons disclosed that in order to reach a strategic cooperation with Tencent, Douyu TV refused higher-valued proposals made by several mainstream venture capital. The two will conduct in-depth cooperation in copyright and resources.
Comment: Institutes predict that the e-sports market in China is expected to exceed 100 million yuan in 2016 and maintain a growth of more than 20 percent in the next three years. Previously Tencent invested in another large broadcasting platform www.longzhu.com. Its investment in Douyu this time shows its recognition of the value of online broadcasting platform. Among listed companies, Shanghai U9 Game Co., Ltd. (600652.SH) announced last year that it proposed to buy 21 percent equities of Suzhoue Youshi Network Technology Co., Ltd., operator of www.longzhu.com. ZheJiang Daily Media Group Co., Ltd. (600633.SH) owns the online broadcasting platform www.zhanqi.tv.
TOP
[Financial Reports Express]
○ Sanju Environmental Protection ＆ New Materials expects growth in Q1
------
Beijing Sanju Environmental Protection ＆ New Materials Co., ltd. (300072.SZ) reported 104 percent growth and proposes 5-for-10 conversion of capital surplus into shares combined with 2 yuan dividend for every 10 shares according to its annual report. Its Q1 report expects 91 to 110 percent growth, primarily to substantial growth in sales. Guangdong Hongteo Accurate Technology Co., Ltd. (300176.SZ) reported 140 percent growth in its annual report, and expect 125 to 152 percent growth in the Q1 report, primarily attributable to the release of production capacity. Shanghai RAAS Blood Products Co., Ltd. (002252.SZ) reported 182 percent growth in net profits in its annual report.
○ Ping An Insurance reported about 40 pct net profits growth in annual report
------
The first annual report of insurance stock disclosed. Ping An Insurance (Group) Company Of China, Ltd. (601318.SH) recorded 54.2 billion yuan net profits last year, increased by 38 percent than the previous year; the total investment yield saw record breaking 7.8 percent in recent years, up 2.7 percentage points year on year; the number of Internet user reached 242 million, up 75.9 percent from the beginning of the year; the earnings per share is 2.98 yuan, and cash dividend per share proposed to be distributed is 0.35 yuan per share. The company's traditional core financial business is expected to be continuously rosy, and its Internet financial business started to see explosive growth.
○ UTour International Travel Service proposes high share conversion and dividend
------。
Beijing UTour International Travel Service Co., Ltd. (002707.SZ) reported 72 percent growth in its annual report and proposes 10-for-10 conversion of capital surplus into shares combined with 0.5 yuan dividend for every 10 shares according to its annual report.
TOP
[Announcement Interpretation]
○ Zbd Pharmaceutical to raise 2 billion yuan to expand medicine circulation
------
Heilongjiang Zbd Pharmaceutical Co., Ltd. (603567.SH) proposes to issue 5,814 shares through private placement at no less than 34.49 yuan per share to raise 2,005 million yuan, which will be used for traditional Chinese medicine commodity exchange center projects in Bozhou City, Anhui Province. Lin Chuangda, actual controller of the company proposes to subscribe up to 200 million yuan. The company indicated that the private placement will promote the company to consolidated the whole industry chain service system of traditional Chinese medicine, and enhance its profitability and market competitiveness.
○ Tongrun Equipment Technology to expand main business through private placement
------
Jiangsu Tongrun Equipment Technology Co., Ltd. (002150.SZ) proposes to issue 48 million shares through private placement to raise about 384 million yuan, which will be used for the expansion of professional tool cabinet, technology center upgrading project, information system upgrading project and supplementing working capital.
○ Xinyangfeng Fertilizer negotiates to purchase controlling rights of high-tech company in green agriculture field
------
Hubei Xinyangfeng Fertilizer Co., Ltd. (000902.SZ) proposes to acquire a leading domestic modernized green ecological agriculture high-tech company. The entire equity of the target company is valued at 1 billion yuan, and Xinyangfeng proposes to buy 51 percent by cash payment. The target company develop and provide comprehensive solutions and services such as seed breeding, soil improvement, trickle irrigation, water and fertilizer integration automatic control system, the Internet of Things of agriculture and agricultural facility engineering.
○ Anhui Sierte Fertilizer Industry to control phosphorite mine
------
Anhui Sierte Fertilizer Industry LTD., company (002538.SZ) proposes to acquire 55 percent equity of Guizhou Zhengli Mine Co., Ltd. with 71,500,000 yuan. Major assets of Zhengli Mine is the mining rights in Pingan Phosphorite Mine No.2 mine in Jinzhong Town, Kaiyang County. Net profits of the mine are 33,970,000 yuan, 11,200,000 yuan and 15,940,000 yuan respectively from 2013 to 2015. Such acquisition can guarantee the supply of main raw phosphorite ore, and also create conditions for the company to expand the market in southwestern China.
○ Controlling shareholder increased shareholding in Youngor Group
------
Controlling shareholder of Youngor Group Co., Ltd. (600177.SH) on March 15 increased holding 3.8 million shares in the company. Substantial shareholder of Jiangsu Zhongnan Construction Group Co., Ltd. (000961.SZ) on March 15b increased holding 1.46 million shares in the company. Chongqing Yufu Group, Shareholder of Southwest Securities Co., Ltd. (600369.SH) increased holding 49 million shares in the company from Feb. 15 to March 11. Industrial Securities Co., Ltd. (601377.SH) announced that the company bought back 67 million shares as of March 14.
TOP
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