[Today's Guide]
○Mark Zuckerberg and Jack Ma discuss hotspots on technology and internet, various fields including AI to gain prosperity
○CMEG 2016 to held soon, cold-chain delivery of vaccines to reinforce
○Ysstech Info-Tech to add stake in Internet finance, Zhejiang Longsheng Group raises prices of dyes products again
○Beijing Enlight Media to control Seven-dimension Vision Tech., Changshan Biochemical Phar. and others propose high share conversion and dividend
[SSN Focus]
○Mark Zuckerberg and Jack Ma discuss hotspots on technology and internet, various fields including AI to gain prosperity
------
Mark Zuckerberg, CEO of Facebook Inc., and Jack Ma, founder and chairman of Alibaba Group, on March 19 participated in an economic summit of China Development Forum 2016, and the both sides discussed on hotspots of internet-based scientific and technical fields, such as artificial intelligence (AI) and virtual reality (VR). Zuckerberg believed that although current AI technology is limited, it will achieve great progress in next five to ten years and see wide utilization in the fields including unmanned drive, forecast of climatic change and medical care ＆ health. Ma mentioned that he could help Zuckerberg to sell the Oculus Rift, sort of VR equipment, on the platforms of Alibaba, and meanwhile, he hoped to help the merchants for promotion through VR scientific technology.
Comment: According to institutional prediction, the investment in the AI field will continue to maintain a high-speed growth, and the market scale in this field will reach 119 billion yuan in 2020. Besides, voice recognition and visual identity will take up 60 percent and 12.5 percent, respectively, of China's AI market in the future. Public information shows that Beijing Guangnian Infinite Tech. Co., Ltd, partially invested in by Anhui Jiangnan Chemical Industry Co., Ltd. (002226.SZ), is mainly engaged in AI-related businesses; Shenzhen JT Automation Equipment Co., Ltd. (300400.SZ) will regard the machine vision as one of its developing directions.
[SSN Selection]
○China Securities Finance Corporation Limited announced that it will resume five term types of margin funds loan businesses from March 21, and cut the rates of each term for margin funds loan.
○The executive meeting of the State Council held on March 18 fully carried out the pilot on changing business tax to value-added tax. The head of the State Administration of Taxation indicated that tax rate of the real estate industry has been determined as 11 percent.
○Zhou Xiaochuan indicated on March 19 that the 13th Five-Year Plan is looking forward to gaining more capital for equity financing by developing the capital market, so as to reduce the enterprises' dependence on loan and credit leverage.
○Xu Dazhe, director of China Atomic Energy Authority, on March 18 indicated that nuclear power station in the inland is being deep demonstration.
○Shen Guang Securities Co., Ltd., the first securities company with joint venture from inland China and Hong Kong under the CEPA framework, has been approved recently, and will be located in China (Shanghai) Pilot Free Trade Zone.
○Shanghai Zhangjiang Hi-tech Park Development Co., Ltd. (600895.SH) recently announced an action scheme for technologic innovation and construction in 2016, and ZJ INNOPARK will speed up the construction for comprehensive National Scientific Center.
TOP
[Industry Information]
○CMEG 2016 to held soon, electronic sports industry attracts increasing attentions
------
The Sport Information Center at the General Administration of Sport of China and Datang Telecom Technology Co., Ltd. (600198.SH) on March 19 held a press conference to announce that they will jointly host the CMEG 2016, which will be carried out from April to July synchronously in various competition zones nationwide. This CMEG is likely to attract 1 million people to participate in the game, and the audience number is likely to reach 27 million person-time through spot game, live telecast and online video and etc., according to related insiders of the General Administration of Sport of China based on previous game-hosting experience.
Comment: Data shows that in 2015, China's electronic sports market reached a size of 27 billion yuan and the number of electronic sports players jumped by 37 percent compared with that in 2014, indicating that the industry is attracting increasing attentions. Besides, the advancing of the "Broadband China" strategy and the construction of 4G also back up the electronic sports industry in hardware. As to listed companies, Chuying Agro-Pastoral Group Co., Ltd. (002477.SZ) gets involved in electronic sports and Internet business via its subsidiary; Shenzhen Seg Co., Ltd. (000058.SZ) recently announced its partnership with Shanghai Wangyu Information Technology Co., Ltd. in electronic sports. ZheJiang Daily Media Group Co., Ltd. (600633.SH) and Shanghai U9 Game Co., Ltd. (600652.SH) have their own game live-broadcasting platforms.
○Illegal vaccines sold to 18 provinces and regions, cold-chain delivery to reinforce
------
Shandong province recently uncovered a case in which a mother and daughter were charged for illegal vaccine sales worth more than 570 million yuan. Vaccines should be transported and stored in cold chain throughout the process by enterprises. But the vaccines involved in the case were not properly refrigerated as required by national standards and were sold to 18 provinces and regions. The not adequately refrigerated vaccine could leave them ineffective and put the lives of the users at risk. The Xinhua News Agency issued an article on March 19 claiming that there are laws to abide by for the circulation of vaccines. Seven departments have proposed to build up and perfect the management system for the cold-chain delivery of vaccines in their industrial planning.
Comment: Cold chain is not only indispensable to the circulation of vaccines but also experiences rapid growth due to the improvement of residents' food structure and the development of fresh food e-commerce business. According to institutional measurement, China's cold chain market will expand at a compound annual growth rate of 25 percent during the thirteenth five-year plan period and reach a market size of 470 billion yuan by 2020. As to listed companies, Aucma Company Limited (600336.SH) was once involved in the development of refrigerated storage equipment for vaccines against Ebola virus; Dalian Refrigeration Co., Ltd. (000530.SZ) covers complete industrial chain from cold-chain equipment to service; Fujian Snowman Co., Ltd. (002639.SZ) actively makes arrangements in relevant production, sales and third-party logistics.
TOP
[Announcement Interpretation]
○Ysstech Info-Tech completes private placement to add stake in Internet finance
------
Shenzhen Ysstech Info-Tech Co., Ltd. (300377.SZ) raises 2.9 billion yuan through private placement by issuing shares to actual controller of the company and etc. to add stakes in Internet finance. Funds for subscription have been paid in at present and the company will resume trading on March 21.
○Zhejiang Longsheng Group raises prices of dyes products again
------
Zhejiang Longsheng Group Co., Ltd. (600352.SH) announces that due to short supply, the company raises the prices of some domestic disperse dyes and reactive dyes products by 3,000 yuan per ton and 5,000 yuan per ton, respectively, on March 20. The total price hike of disperse dyes, reactive dyes and acid dyes products hits 50-55 percent, 55-60 percent and around 15 percent since the beginning of March this year.
TOP
○Beijing Enlight Media to control Seven-dimension Vision Tech. to expand in VR
------
Beijing Enlight Media Co., Ltd. (300251.SZ) intends to increase investment of 40 million yuan in Beijing Seven-dimension Vision Tech. Company. This deal will make Beijing Enlight Pictures and Enlight Media Company, the wholly-owned subsidiary of Beijing Enlight Media, will hold 51 percent equity in Seven-dimension Vision Tech. Seven-dimension Vision Tech. is leading in virtual reality and augmented reality (VR/AR) technology in China and has provided a great many of high-quality services to clients such as China Central Television, satellite television and satellite televisions.
○Guangji Phar. and others see shareholding increase
------
Substantial shareholder of Hubei Guangji Pharmaceutical Co., Ltd. (000952.SZ) increased shareholding in the company with 1.97 million shares during March 17-18. Some senior management of Heilan Home Co., Ltd. (600398.SH) increased shareholding in the company with 15.01 million shares during March 1-18. Qingdao City Construction Investment Group, shareholder of Qingdao Hengshun Zhongsheng Group Co., Ltd. (300208.SZ) increased shareholding in the company with 11.08 million shares during March 11-18. Controlling shareholder of Youngor Group Co., Ltd. (600177.SH) increased shareholding in the company with 4.32 million shares on March 18.
○Xingye Mining to acquire 2 mining companies at RMB3.7 bln
------
Inner Mongolia Xingye Mining Co., Ltd. (000426.SZ) plans to acquire 100 percent equity of Xi Ujimqin Banner Yinman Mining Company and Zhengxiangbai Banner Qian Jin Da Mining Company by issuing shares at 6.06 yuan per share through private placement and paying cash, which totals 3.7 billion yuan. In addition, the company will raise supporting funds of 3.1 billion yuan through private placement. Yinman Mining and Qian Jin Da Mining are both engaged in selecting and purchasing nonferrous metals such as silver, lead and zinc.
[Financial Reports Express]
○Changshan Biochemical Phar. and others propose high share conversion and dividend
------
Hebei Changshan Biochemical Pharmaceutical Co., Ltd. (300255.SZ) sees a growth of 17 percent in net profits in 2015 and proposes a 10-for-10 conversion of capital surplus into shares combined with 0.53 yuan dividend for every 10 shares according to its annual report. Its new profit is expected to increase by 10 percent-30 percent in the first quarter. Net profit of Jiangsu Kangde Xin Composite Material Co., Ltd. (002450.SZ) rises by 41 percent in 2015 and the company's controlling shareholder proposes a 10-for-10 conversion of capital surplus into shares combined with 0.9 yuan dividend for every 10 shares according to its annual report. Actual controller of China West Construction Group Co., Ltd. (002302.SZ) proposes a 10-for-10 conversion of capital surplus into shares combined with 1 yuan dividend for every 10 shares according to its annual report. Net profit of East Money Information Co., Ltd. (300059.SZ) hikes by 1,015 percent in 2015 and the company proposes a 8-for-10 conversion of capital surplus into shares combined with 1 yuan dividend for every 10 shares according to its annual report.
Net profit of Gf Securities Co., Ltd. (000776.SZ) jumps by 163 percent in 2015 and it proposes a dividend of 8 yuan for every 10 shares according to its annual report. Net profit of Hubei Jumpcan Pharmaceutical Co., Ltd. (600566.SH) soars by 32 percent in 2015 and it proposes a dividend of 7 yuan for every 10 shares according to its annual report.
[Trading Alarms]
○Safety Wire Rope launches IPO on March 21
------
Jiangsu Safety Wire Rope Co., Ltd. (603028.SH) will launch IPO at 4.26 yuan per share with an upper limit of 22,000 shares per account. The P/E ratio is 23 times. Investors who succeed in subscribing the stocks should pay on March 23.
[Weekly Review]
○Realize policy trend and expect good market situation
------
March 20 is the spring equinox of 2016. The spring equinox and autumn equinox are the two days in the year when day and night are of equal length; after the spring equinox, days will be longer than nights in a year. But as for stock market, it is noteworthy that whether this round of rebound will trigger the real market situation in spring.
Regarding the keynote of market trend, policy plays an important role in this round of market situation. Authorities' attitude, especially the significant adjustment in IPO policy, indicates the leaders' efforts in improving the orientation of stock market, which is of significance to the long and medium-term development of the A-share market.
In view of market structure, the hot topics in last week reflects the warming policy and also shows the characteristics with general recovery and growth stocks, which is helpful for the following situation.
Based on the above judgment, SSN found the investment opportunity in dying industry and Sichuan Tianqi Lithium Industries, Inc. (002466.SZ) in the first half of last week and focused on intelligent drive which gained great policy support in the second half. We receive sound response from the market and will be work harder to provide more high-quality information in the future.
TOP
○Mark Zuckerberg and Jack Ma discuss hotspots on technology and internet, various fields including AI to gain prosperity
○CMEG 2016 to held soon, cold-chain delivery of vaccines to reinforce
○Ysstech Info-Tech to add stake in Internet finance, Zhejiang Longsheng Group raises prices of dyes products again
○Beijing Enlight Media to control Seven-dimension Vision Tech., Changshan Biochemical Phar. and others propose high share conversion and dividend
[SSN Focus]
○Mark Zuckerberg and Jack Ma discuss hotspots on technology and internet, various fields including AI to gain prosperity
------
Mark Zuckerberg, CEO of Facebook Inc., and Jack Ma, founder and chairman of Alibaba Group, on March 19 participated in an economic summit of China Development Forum 2016, and the both sides discussed on hotspots of internet-based scientific and technical fields, such as artificial intelligence (AI) and virtual reality (VR). Zuckerberg believed that although current AI technology is limited, it will achieve great progress in next five to ten years and see wide utilization in the fields including unmanned drive, forecast of climatic change and medical care ＆ health. Ma mentioned that he could help Zuckerberg to sell the Oculus Rift, sort of VR equipment, on the platforms of Alibaba, and meanwhile, he hoped to help the merchants for promotion through VR scientific technology.
Comment: According to institutional prediction, the investment in the AI field will continue to maintain a high-speed growth, and the market scale in this field will reach 119 billion yuan in 2020. Besides, voice recognition and visual identity will take up 60 percent and 12.5 percent, respectively, of China's AI market in the future. Public information shows that Beijing Guangnian Infinite Tech. Co., Ltd, partially invested in by Anhui Jiangnan Chemical Industry Co., Ltd. (002226.SZ), is mainly engaged in AI-related businesses; Shenzhen JT Automation Equipment Co., Ltd. (300400.SZ) will regard the machine vision as one of its developing directions.
[SSN Selection]
○China Securities Finance Corporation Limited announced that it will resume five term types of margin funds loan businesses from March 21, and cut the rates of each term for margin funds loan.
○The executive meeting of the State Council held on March 18 fully carried out the pilot on changing business tax to value-added tax. The head of the State Administration of Taxation indicated that tax rate of the real estate industry has been determined as 11 percent.
○Zhou Xiaochuan indicated on March 19 that the 13th Five-Year Plan is looking forward to gaining more capital for equity financing by developing the capital market, so as to reduce the enterprises' dependence on loan and credit leverage.
○Xu Dazhe, director of China Atomic Energy Authority, on March 18 indicated that nuclear power station in the inland is being deep demonstration.
○Shen Guang Securities Co., Ltd., the first securities company with joint venture from inland China and Hong Kong under the CEPA framework, has been approved recently, and will be located in China (Shanghai) Pilot Free Trade Zone.
○Shanghai Zhangjiang Hi-tech Park Development Co., Ltd. (600895.SH) recently announced an action scheme for technologic innovation and construction in 2016, and ZJ INNOPARK will speed up the construction for comprehensive National Scientific Center.
TOP
[Industry Information]
○CMEG 2016 to held soon, electronic sports industry attracts increasing attentions
------
The Sport Information Center at the General Administration of Sport of China and Datang Telecom Technology Co., Ltd. (600198.SH) on March 19 held a press conference to announce that they will jointly host the CMEG 2016, which will be carried out from April to July synchronously in various competition zones nationwide. This CMEG is likely to attract 1 million people to participate in the game, and the audience number is likely to reach 27 million person-time through spot game, live telecast and online video and etc., according to related insiders of the General Administration of Sport of China based on previous game-hosting experience.
Comment: Data shows that in 2015, China's electronic sports market reached a size of 27 billion yuan and the number of electronic sports players jumped by 37 percent compared with that in 2014, indicating that the industry is attracting increasing attentions. Besides, the advancing of the "Broadband China" strategy and the construction of 4G also back up the electronic sports industry in hardware. As to listed companies, Chuying Agro-Pastoral Group Co., Ltd. (002477.SZ) gets involved in electronic sports and Internet business via its subsidiary; Shenzhen Seg Co., Ltd. (000058.SZ) recently announced its partnership with Shanghai Wangyu Information Technology Co., Ltd. in electronic sports. ZheJiang Daily Media Group Co., Ltd. (600633.SH) and Shanghai U9 Game Co., Ltd. (600652.SH) have their own game live-broadcasting platforms.
○Illegal vaccines sold to 18 provinces and regions, cold-chain delivery to reinforce
------
Shandong province recently uncovered a case in which a mother and daughter were charged for illegal vaccine sales worth more than 570 million yuan. Vaccines should be transported and stored in cold chain throughout the process by enterprises. But the vaccines involved in the case were not properly refrigerated as required by national standards and were sold to 18 provinces and regions. The not adequately refrigerated vaccine could leave them ineffective and put the lives of the users at risk. The Xinhua News Agency issued an article on March 19 claiming that there are laws to abide by for the circulation of vaccines. Seven departments have proposed to build up and perfect the management system for the cold-chain delivery of vaccines in their industrial planning.
Comment: Cold chain is not only indispensable to the circulation of vaccines but also experiences rapid growth due to the improvement of residents' food structure and the development of fresh food e-commerce business. According to institutional measurement, China's cold chain market will expand at a compound annual growth rate of 25 percent during the thirteenth five-year plan period and reach a market size of 470 billion yuan by 2020. As to listed companies, Aucma Company Limited (600336.SH) was once involved in the development of refrigerated storage equipment for vaccines against Ebola virus; Dalian Refrigeration Co., Ltd. (000530.SZ) covers complete industrial chain from cold-chain equipment to service; Fujian Snowman Co., Ltd. (002639.SZ) actively makes arrangements in relevant production, sales and third-party logistics.
TOP
[Announcement Interpretation]
○Ysstech Info-Tech completes private placement to add stake in Internet finance
------
Shenzhen Ysstech Info-Tech Co., Ltd. (300377.SZ) raises 2.9 billion yuan through private placement by issuing shares to actual controller of the company and etc. to add stakes in Internet finance. Funds for subscription have been paid in at present and the company will resume trading on March 21.
○Zhejiang Longsheng Group raises prices of dyes products again
------
Zhejiang Longsheng Group Co., Ltd. (600352.SH) announces that due to short supply, the company raises the prices of some domestic disperse dyes and reactive dyes products by 3,000 yuan per ton and 5,000 yuan per ton, respectively, on March 20. The total price hike of disperse dyes, reactive dyes and acid dyes products hits 50-55 percent, 55-60 percent and around 15 percent since the beginning of March this year.
TOP
○Beijing Enlight Media to control Seven-dimension Vision Tech. to expand in VR
------
Beijing Enlight Media Co., Ltd. (300251.SZ) intends to increase investment of 40 million yuan in Beijing Seven-dimension Vision Tech. Company. This deal will make Beijing Enlight Pictures and Enlight Media Company, the wholly-owned subsidiary of Beijing Enlight Media, will hold 51 percent equity in Seven-dimension Vision Tech. Seven-dimension Vision Tech. is leading in virtual reality and augmented reality (VR/AR) technology in China and has provided a great many of high-quality services to clients such as China Central Television, satellite television and satellite televisions.
○Guangji Phar. and others see shareholding increase
------
Substantial shareholder of Hubei Guangji Pharmaceutical Co., Ltd. (000952.SZ) increased shareholding in the company with 1.97 million shares during March 17-18. Some senior management of Heilan Home Co., Ltd. (600398.SH) increased shareholding in the company with 15.01 million shares during March 1-18. Qingdao City Construction Investment Group, shareholder of Qingdao Hengshun Zhongsheng Group Co., Ltd. (300208.SZ) increased shareholding in the company with 11.08 million shares during March 11-18. Controlling shareholder of Youngor Group Co., Ltd. (600177.SH) increased shareholding in the company with 4.32 million shares on March 18.
○Xingye Mining to acquire 2 mining companies at RMB3.7 bln
------
Inner Mongolia Xingye Mining Co., Ltd. (000426.SZ) plans to acquire 100 percent equity of Xi Ujimqin Banner Yinman Mining Company and Zhengxiangbai Banner Qian Jin Da Mining Company by issuing shares at 6.06 yuan per share through private placement and paying cash, which totals 3.7 billion yuan. In addition, the company will raise supporting funds of 3.1 billion yuan through private placement. Yinman Mining and Qian Jin Da Mining are both engaged in selecting and purchasing nonferrous metals such as silver, lead and zinc.
[Financial Reports Express]
○Changshan Biochemical Phar. and others propose high share conversion and dividend
------
Hebei Changshan Biochemical Pharmaceutical Co., Ltd. (300255.SZ) sees a growth of 17 percent in net profits in 2015 and proposes a 10-for-10 conversion of capital surplus into shares combined with 0.53 yuan dividend for every 10 shares according to its annual report. Its new profit is expected to increase by 10 percent-30 percent in the first quarter. Net profit of Jiangsu Kangde Xin Composite Material Co., Ltd. (002450.SZ) rises by 41 percent in 2015 and the company's controlling shareholder proposes a 10-for-10 conversion of capital surplus into shares combined with 0.9 yuan dividend for every 10 shares according to its annual report. Actual controller of China West Construction Group Co., Ltd. (002302.SZ) proposes a 10-for-10 conversion of capital surplus into shares combined with 1 yuan dividend for every 10 shares according to its annual report. Net profit of East Money Information Co., Ltd. (300059.SZ) hikes by 1,015 percent in 2015 and the company proposes a 8-for-10 conversion of capital surplus into shares combined with 1 yuan dividend for every 10 shares according to its annual report.
Net profit of Gf Securities Co., Ltd. (000776.SZ) jumps by 163 percent in 2015 and it proposes a dividend of 8 yuan for every 10 shares according to its annual report. Net profit of Hubei Jumpcan Pharmaceutical Co., Ltd. (600566.SH) soars by 32 percent in 2015 and it proposes a dividend of 7 yuan for every 10 shares according to its annual report.
[Trading Alarms]
○Safety Wire Rope launches IPO on March 21
------
Jiangsu Safety Wire Rope Co., Ltd. (603028.SH) will launch IPO at 4.26 yuan per share with an upper limit of 22,000 shares per account. The P/E ratio is 23 times. Investors who succeed in subscribing the stocks should pay on March 23.
[Weekly Review]
○Realize policy trend and expect good market situation
------
March 20 is the spring equinox of 2016. The spring equinox and autumn equinox are the two days in the year when day and night are of equal length; after the spring equinox, days will be longer than nights in a year. But as for stock market, it is noteworthy that whether this round of rebound will trigger the real market situation in spring.
Regarding the keynote of market trend, policy plays an important role in this round of market situation. Authorities' attitude, especially the significant adjustment in IPO policy, indicates the leaders' efforts in improving the orientation of stock market, which is of significance to the long and medium-term development of the A-share market.
In view of market structure, the hot topics in last week reflects the warming policy and also shows the characteristics with general recovery and growth stocks, which is helpful for the following situation.
Based on the above judgment, SSN found the investment opportunity in dying industry and Sichuan Tianqi Lithium Industries, Inc. (002466.SZ) in the first half of last week and focused on intelligent drive which gained great policy support in the second half. We receive sound response from the market and will be work harder to provide more high-quality information in the future.
TOP
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