[Today's Guide]
○Terrorist attacks in Belgium, international community still faces severe anti-terrorist trend
○Policy greatly supports children hospital, two-child policy expands wider market
○Wanbangde Group to control Dongliang New Material at premium over 200 pct, Zhejiang Guangsha proposes to sell assets to downsize real estate business
○Dawning Information Industry and other firms propose high share conversion and dividend, Net profits of Huawei Technology and Tianshui Zhongxing Bio-technology expected to hike significantly in Q1
[SSN Focus]
○Terrorist attacks in Belgium, international community still faces severe anti-terrorist trend
------
The airport in Brussels, the capital of Belgium, and a metro station near by the EU's headquarter were bombed on the morning of March 22 (local time) one by one, having caused about 20 deaths already. Belgium stated that these two bombs are suicide terrorist attacks, and it raises its national security alert to the highest level. And the international gold price has risen after the bombs.
Comment: Recalling the previous terrorist attacks in recent two years, it is easy to see that the terrorist attack mode of "multipoint-based linkage" usually adopted by the terrorists has been increasingly used, and the international community faces an extremely-severe anti-terrorist trend. Over 20 Chinese cities have successively issued the planning for urban security. The outline for the 13th Five-Year Plan even clearly points out that strength should be reinforced to build up the professional forces and enhance international cooperation against the terrorist. After terrorist attack in Paris on Nov. 13 last year, the stock price of A-share companies soared to the daily ten percent limit in the next trading day, such as Shenzhen Infinova Limited (002528.SZ) and Anhui Sinonet ＆ Xinlong Science ＆ Technology Co., Ltd. (002298.SZ), which are mainly engaged in video monitoring system; and so did Beijing Jiaxun Feihong Electrical Co., Ltd. (300213.SZ), mainly engaged in dispatch communication system.
[SSN Selection]
○Last week, the number of newly-added investors increased for a 5th consecutive week, but the proportion of position-holding accounts had constantly declined for three weeks.
○Officer at the State Administration of Foreign Exchange on March 22 indicated that China has sufficient and powerful policy toolkits to face capital outflow, and the Tobin tax policy is being studied.
○Spokesman of China's Ministry of Foreign Affairs on March 22 indicated that the Philippine fishing boat undisguisedly violated the law enforcement in the waters of Huangyan Island, China, and China has to take moves to reinforce the control in this waters.
○Data of www.soozhu.com shows that the market price of lean-meat pig recorded 19.9 yuan on March 22, up by over 60 percent year on year.
○General Administration of Quality Supervision, Inspection and Quarantine of Beijing, Tianjin and Hebei on March 21 indicated that National V Emission Standard for the motor vehicle will be further implemented this year.
TOP
[Industrial Information]
○Policy greatly supports children hospital, two-child policy expands wider market
------
The 22th meeting of fully deepening reform leader team of the central government was held on March 22 to determine the documents, including Opinions on Reinforcing Reform and Development of Medical Treatment, Health Care and Service for Children. It proposes to reinforce the reform and development of medical treatment, health care and service for children, and systematically design the reform path, and truly ease the resource shortage based on key issues, such as intensifying the training and team-building for pediatric medical staff, improving the related system, promoting the reform in relevant fields, and enhancing the service quality.
Comment: Along with the constant implementation of universal two-child policy, medical care for the children is likely to see wider market. Li Bin, director at the National Health and Family Planning Commission, once indicated that, during the 13th Five-Year Plan period, China will continue to focus on increasing supply of children's medical care resource for system construction, intensify the investment strength, and pursue for a goal that each province or city will have a professional hospital for children. Lvjing Holding Co., Ltd. (000502.SZ) has announced that it plans to raise 10,054 million yuan through private placement to build up tumour and genetic disease hospitals under Beijing Children Hospital Group. Humanwell Healthcare (group) Co., Ltd. (600079.SH) successively announced to establish a children hospital with Health and Family Planning Commission of Yichang City and Zhongxiang Municipal Government.
TOP
[Announcement Interpretation]
○Wanbangde Group to control Dongliang New Material at premium over 200 pct
------
Lu Zhibao, controlling shareholder of Zhejiang Dongliang New Material Co., Ltd. (002082.SZ), proposes to transfer 22.47 million shares, accounting for 9.44 percent of the company's total share capital, to Wanbangde Group Co., Ltd. at 730 million yuan. Upon completion of the transaction, both Wanbangde Group and Lu Zhibao will act as the largest shareholder of the company and the two parties have agreed to act in concert. It is noteworthy that the transfer price is set at 32.49 yuan per share, indicating a great premium compared with the company's stock price of 10. 21 yuan per share recorded before trading suspension.
Comment: Wanbangde, engaged in investment management business, owns assets including pharmacy, mechanical manufacturing and etc. Wanbangde Pharmaceutical Group Co., Ltd. once failed to launch IPO. Dongliang New Material planned to acquire the company through private placement and paying in cash, but it recently announces termination of the plan. Wanbangde promises introduction of quality assets to integrate or optimize the business of Dongliang New Material. Following capital operation will worth the expectation.
○Zhejiang Guangsha proposes to sell assets to downsize real estate business
------
Zhejiang Guangsha Co., Ltd. (600052.SH) proposes to transfer 51 percent equities of Zhejiang Yongzhu Industry Co., Ltd. and 100 percent equities of Guangsha Dongjin Investment Co., Ltd. to Guangsha Real Estate Development Group Co., Ltd., a fully-owned subsidiary under Guangsha Holding Group Co., Ltd. The total estimated valuation of the underlying assets records around 1.11 billion yuan. The company indicates that it has determined to transform from real estate industry to emerging industries including culture, film and TV. Real estate business of the company will be further stripped off and the aforesaid transaction is just one step of the company's industrial transformation.
○Xiandai Investment invests RMB820 mln in three banks
------
Xiandai Investment Co., Ltd. (000900.SZ) proposes to acquire 3 percent equities of Changsha Rural Commercial Bank and 20 percent equities of Xiangtan Tianyi Rural Commercial Bank with 300 million yuan and 320 million yuan, respectively. Xiandai Investment will also acquire 28 percent equities of Lixian Rural Commercial Bank with 201.6 million yuan and become the largest shareholder of the latter.
○Boxin Investing ＆ Holdings bought by Kangsheng Investment Management through secondary market acquisition to 5 pct limit again
------
Guangdong Boxin Investing ＆ Holdings Co., Ltd. (600083.SH) was bought by Tibet Kangsheng Investment Management Co., Ltd. through secondary market acquisition to 5 percent limit again. Kangsheng Investment Management bought shares of Boxin Investing ＆ Holdings through secondary market acquisition to 5 percent limit for the first time in last September, and it bought another 11.499 million shares at an average price of 19.56 yuan per share during March 9-22, reaching the 5 percent limit for the second time. The company's latest stock price is 20.5 yuan per share. Kangsheng Investment Management indicates that it is optimistic about the appreciation of the equities and might further increase shareholding in the future.
○Leyard Optoelectronic joins hands with Wisesoft in exploring application of VR
------
Leyard Optoelectronic Co., Ltd. (300296.SZ) and Wisesoft Co., Ltd. (002253.SZ) ink strategic cooperation agreement, proposing to work together on studying the integration of LED small-spacing display technology and Virtual Reality (VR) technology as well as relevant application, constructing and operating a complete industrial chain for innovative entrepreneurship of television and animation in universities, investing in and researching technologies related to high-definition stereoscopic LED display, and constructing and operating VR experience pavilion.
○Kaiser to gain several IP authorizations worth RMB100 mln from Tencent Animation
------
Kaiser (China) Holding Co., Ltd. (002425.SZ) signed cooperation agreement with China's largest Internet animation platform Tencent Animation. According to the agreement, Tencent Animation will authorize a certain amount of IP (including but not limited to Spirit Blade Mountain, Silver Grave Keeper and My Double Order Companion, etc.) to the company to conduct adaptation, development, publication and operation of mobile games, web games and TV series (including internet dramas) in mainland China. The total value of this IP authorization will be worth 100 million yuan.
TOP
[Financial Reports Express]
○Dawning Information Industry and other firms propose high share conversion and dividend
------
Net profit of Dawning Information Industry Co., Ltd. (603019.SH) rises by 53 percent in 2015 and the company proposes a 4-for-10 conversion of capital surplus into shares combined with 1.4 yuan dividend for every 10 shares according to its annual report.
Net profit of Zibo Qixiang Tengda Chemical Co., Ltd. (002408.SZ) drops by 38 percent in 2015 and the company proposes a 12-for-10 conversion of capital surplus into shares combined with 2 yuan dividend for every 10 shares according to its annual report. Net profit of Hebei Huijin Electromechanical Co., Ltd. (300368.SZ) soars by 18 percent in 2015 and the company proposes a 10-for-10 conversion of capital surplus into shares combined with 0.4 yuan dividend for every 10 shares according to its annual report.
○Net profits of Huawei Technology and Tianshui Zhongxing Bio-technology expected to hike significantly in Q1
------
Net profit of Huawei Technology Co., Ltd. (002502.SZ) is predicted to jump by 310 percent-360 percent in the first quarter mainly due to contribution from games and films business. Net profit of Tianshui Zhongxing Bio-technology Co., Ltd. (002772.SZ) is predicted to hike by 75 percent-95 percent in the first quarter as prices of needle mushroom increased remarkably in Jan.-Feb. and the needle mushroom production base in Sichuan, which the company acquired, raised the production in this quarter.
[News Tracking]
○Jingxi Culture ＆ Tourism to release future strategy
------
Beijing Jingxi Culture ＆ Tourism Co., Ltd. (000802.SZ) holds a press conference on future strategy in Beijing today (March 22). The company's president Xia Chen'an indicates that the company will carry out works in 2106 from the following three aspects. Firstly, it will establish platform channels to improve the channels of TV terminal, Internet terminal and mobile terminal; secondly, it will found IP R＆D division, reserve, develop and advance high-quality IP; and finally, it will set up several divisions to improve the construction of talent teams.
According to the strategy deployment, the company plans to focus on the TV and internet dramas through Beijing Century Partner Culture ＆ Media Inc., which is led by famous film and TV plays investor Lou Xiaoxi. Senior film and TV play producer Bian Xiaojun is in charge of TV play investment and production and scriptwriter Yan Geling will serve as literature consultant to provide support on copyright and charge the content. Beijing Culture Brokerage Co., Ltd. that the company is going to acquire is led by the famous mainland broker Wang Jinghua and is a top artist brokerage company in China with more than 10 famous Chinese artists.
[Trading Trends]
○Jinke Peroxides bought through 3 institutional seats
------
The trading volume ranking list on March 22 shows that Zhejiang Jinke Peroxides Co., Ltd. (300459.SZ) was bought through three institutional seats with a total of 155 million yuan, accounting for 20 percent of its intraday turnover.
Comment: SSN reported on March 20 that the CMEG 2016 was about to kick off. According to the Sport Information Center at the General Administration of Sport of China, this CMEG will draw extensive attention as it is the first e-sports competition specific to mobile terminal. The report of Industrial Securities Co., Ltd. also points out that there are various channels available for the e-sports industry in the entertainment Internet era. Jinke Peroxides is now promoting the acquisition of 100 percent equity of Hangzhou Zhe Xin IT Company, which is principally engaged in the launch and operation of mobile games.
[Trading Alarms]
○Copton Technology to launch IPO on March 23
------
Qingdao Copton Technology Company Limited (732798) will offer shares at 14.33 yuan per share with an upper limit of 10,000 shares for each applicant. The company's PE ratio is 17 times. Successful applicants should pay subscriptions on March 25.
TOP
○Terrorist attacks in Belgium, international community still faces severe anti-terrorist trend
○Policy greatly supports children hospital, two-child policy expands wider market
○Wanbangde Group to control Dongliang New Material at premium over 200 pct, Zhejiang Guangsha proposes to sell assets to downsize real estate business
○Dawning Information Industry and other firms propose high share conversion and dividend, Net profits of Huawei Technology and Tianshui Zhongxing Bio-technology expected to hike significantly in Q1
[SSN Focus]
○Terrorist attacks in Belgium, international community still faces severe anti-terrorist trend
------
The airport in Brussels, the capital of Belgium, and a metro station near by the EU's headquarter were bombed on the morning of March 22 (local time) one by one, having caused about 20 deaths already. Belgium stated that these two bombs are suicide terrorist attacks, and it raises its national security alert to the highest level. And the international gold price has risen after the bombs.
Comment: Recalling the previous terrorist attacks in recent two years, it is easy to see that the terrorist attack mode of "multipoint-based linkage" usually adopted by the terrorists has been increasingly used, and the international community faces an extremely-severe anti-terrorist trend. Over 20 Chinese cities have successively issued the planning for urban security. The outline for the 13th Five-Year Plan even clearly points out that strength should be reinforced to build up the professional forces and enhance international cooperation against the terrorist. After terrorist attack in Paris on Nov. 13 last year, the stock price of A-share companies soared to the daily ten percent limit in the next trading day, such as Shenzhen Infinova Limited (002528.SZ) and Anhui Sinonet ＆ Xinlong Science ＆ Technology Co., Ltd. (002298.SZ), which are mainly engaged in video monitoring system; and so did Beijing Jiaxun Feihong Electrical Co., Ltd. (300213.SZ), mainly engaged in dispatch communication system.
[SSN Selection]
○Last week, the number of newly-added investors increased for a 5th consecutive week, but the proportion of position-holding accounts had constantly declined for three weeks.
○Officer at the State Administration of Foreign Exchange on March 22 indicated that China has sufficient and powerful policy toolkits to face capital outflow, and the Tobin tax policy is being studied.
○Spokesman of China's Ministry of Foreign Affairs on March 22 indicated that the Philippine fishing boat undisguisedly violated the law enforcement in the waters of Huangyan Island, China, and China has to take moves to reinforce the control in this waters.
○Data of www.soozhu.com shows that the market price of lean-meat pig recorded 19.9 yuan on March 22, up by over 60 percent year on year.
○General Administration of Quality Supervision, Inspection and Quarantine of Beijing, Tianjin and Hebei on March 21 indicated that National V Emission Standard for the motor vehicle will be further implemented this year.
TOP
[Industrial Information]
○Policy greatly supports children hospital, two-child policy expands wider market
------
The 22th meeting of fully deepening reform leader team of the central government was held on March 22 to determine the documents, including Opinions on Reinforcing Reform and Development of Medical Treatment, Health Care and Service for Children. It proposes to reinforce the reform and development of medical treatment, health care and service for children, and systematically design the reform path, and truly ease the resource shortage based on key issues, such as intensifying the training and team-building for pediatric medical staff, improving the related system, promoting the reform in relevant fields, and enhancing the service quality.
Comment: Along with the constant implementation of universal two-child policy, medical care for the children is likely to see wider market. Li Bin, director at the National Health and Family Planning Commission, once indicated that, during the 13th Five-Year Plan period, China will continue to focus on increasing supply of children's medical care resource for system construction, intensify the investment strength, and pursue for a goal that each province or city will have a professional hospital for children. Lvjing Holding Co., Ltd. (000502.SZ) has announced that it plans to raise 10,054 million yuan through private placement to build up tumour and genetic disease hospitals under Beijing Children Hospital Group. Humanwell Healthcare (group) Co., Ltd. (600079.SH) successively announced to establish a children hospital with Health and Family Planning Commission of Yichang City and Zhongxiang Municipal Government.
TOP
[Announcement Interpretation]
○Wanbangde Group to control Dongliang New Material at premium over 200 pct
------
Lu Zhibao, controlling shareholder of Zhejiang Dongliang New Material Co., Ltd. (002082.SZ), proposes to transfer 22.47 million shares, accounting for 9.44 percent of the company's total share capital, to Wanbangde Group Co., Ltd. at 730 million yuan. Upon completion of the transaction, both Wanbangde Group and Lu Zhibao will act as the largest shareholder of the company and the two parties have agreed to act in concert. It is noteworthy that the transfer price is set at 32.49 yuan per share, indicating a great premium compared with the company's stock price of 10. 21 yuan per share recorded before trading suspension.
Comment: Wanbangde, engaged in investment management business, owns assets including pharmacy, mechanical manufacturing and etc. Wanbangde Pharmaceutical Group Co., Ltd. once failed to launch IPO. Dongliang New Material planned to acquire the company through private placement and paying in cash, but it recently announces termination of the plan. Wanbangde promises introduction of quality assets to integrate or optimize the business of Dongliang New Material. Following capital operation will worth the expectation.
○Zhejiang Guangsha proposes to sell assets to downsize real estate business
------
Zhejiang Guangsha Co., Ltd. (600052.SH) proposes to transfer 51 percent equities of Zhejiang Yongzhu Industry Co., Ltd. and 100 percent equities of Guangsha Dongjin Investment Co., Ltd. to Guangsha Real Estate Development Group Co., Ltd., a fully-owned subsidiary under Guangsha Holding Group Co., Ltd. The total estimated valuation of the underlying assets records around 1.11 billion yuan. The company indicates that it has determined to transform from real estate industry to emerging industries including culture, film and TV. Real estate business of the company will be further stripped off and the aforesaid transaction is just one step of the company's industrial transformation.
○Xiandai Investment invests RMB820 mln in three banks
------
Xiandai Investment Co., Ltd. (000900.SZ) proposes to acquire 3 percent equities of Changsha Rural Commercial Bank and 20 percent equities of Xiangtan Tianyi Rural Commercial Bank with 300 million yuan and 320 million yuan, respectively. Xiandai Investment will also acquire 28 percent equities of Lixian Rural Commercial Bank with 201.6 million yuan and become the largest shareholder of the latter.
○Boxin Investing ＆ Holdings bought by Kangsheng Investment Management through secondary market acquisition to 5 pct limit again
------
Guangdong Boxin Investing ＆ Holdings Co., Ltd. (600083.SH) was bought by Tibet Kangsheng Investment Management Co., Ltd. through secondary market acquisition to 5 percent limit again. Kangsheng Investment Management bought shares of Boxin Investing ＆ Holdings through secondary market acquisition to 5 percent limit for the first time in last September, and it bought another 11.499 million shares at an average price of 19.56 yuan per share during March 9-22, reaching the 5 percent limit for the second time. The company's latest stock price is 20.5 yuan per share. Kangsheng Investment Management indicates that it is optimistic about the appreciation of the equities and might further increase shareholding in the future.
○Leyard Optoelectronic joins hands with Wisesoft in exploring application of VR
------
Leyard Optoelectronic Co., Ltd. (300296.SZ) and Wisesoft Co., Ltd. (002253.SZ) ink strategic cooperation agreement, proposing to work together on studying the integration of LED small-spacing display technology and Virtual Reality (VR) technology as well as relevant application, constructing and operating a complete industrial chain for innovative entrepreneurship of television and animation in universities, investing in and researching technologies related to high-definition stereoscopic LED display, and constructing and operating VR experience pavilion.
○Kaiser to gain several IP authorizations worth RMB100 mln from Tencent Animation
------
Kaiser (China) Holding Co., Ltd. (002425.SZ) signed cooperation agreement with China's largest Internet animation platform Tencent Animation. According to the agreement, Tencent Animation will authorize a certain amount of IP (including but not limited to Spirit Blade Mountain, Silver Grave Keeper and My Double Order Companion, etc.) to the company to conduct adaptation, development, publication and operation of mobile games, web games and TV series (including internet dramas) in mainland China. The total value of this IP authorization will be worth 100 million yuan.
TOP
[Financial Reports Express]
○Dawning Information Industry and other firms propose high share conversion and dividend
------
Net profit of Dawning Information Industry Co., Ltd. (603019.SH) rises by 53 percent in 2015 and the company proposes a 4-for-10 conversion of capital surplus into shares combined with 1.4 yuan dividend for every 10 shares according to its annual report.
Net profit of Zibo Qixiang Tengda Chemical Co., Ltd. (002408.SZ) drops by 38 percent in 2015 and the company proposes a 12-for-10 conversion of capital surplus into shares combined with 2 yuan dividend for every 10 shares according to its annual report. Net profit of Hebei Huijin Electromechanical Co., Ltd. (300368.SZ) soars by 18 percent in 2015 and the company proposes a 10-for-10 conversion of capital surplus into shares combined with 0.4 yuan dividend for every 10 shares according to its annual report.
○Net profits of Huawei Technology and Tianshui Zhongxing Bio-technology expected to hike significantly in Q1
------
Net profit of Huawei Technology Co., Ltd. (002502.SZ) is predicted to jump by 310 percent-360 percent in the first quarter mainly due to contribution from games and films business. Net profit of Tianshui Zhongxing Bio-technology Co., Ltd. (002772.SZ) is predicted to hike by 75 percent-95 percent in the first quarter as prices of needle mushroom increased remarkably in Jan.-Feb. and the needle mushroom production base in Sichuan, which the company acquired, raised the production in this quarter.
[News Tracking]
○Jingxi Culture ＆ Tourism to release future strategy
------
Beijing Jingxi Culture ＆ Tourism Co., Ltd. (000802.SZ) holds a press conference on future strategy in Beijing today (March 22). The company's president Xia Chen'an indicates that the company will carry out works in 2106 from the following three aspects. Firstly, it will establish platform channels to improve the channels of TV terminal, Internet terminal and mobile terminal; secondly, it will found IP R＆D division, reserve, develop and advance high-quality IP; and finally, it will set up several divisions to improve the construction of talent teams.
According to the strategy deployment, the company plans to focus on the TV and internet dramas through Beijing Century Partner Culture ＆ Media Inc., which is led by famous film and TV plays investor Lou Xiaoxi. Senior film and TV play producer Bian Xiaojun is in charge of TV play investment and production and scriptwriter Yan Geling will serve as literature consultant to provide support on copyright and charge the content. Beijing Culture Brokerage Co., Ltd. that the company is going to acquire is led by the famous mainland broker Wang Jinghua and is a top artist brokerage company in China with more than 10 famous Chinese artists.
[Trading Trends]
○Jinke Peroxides bought through 3 institutional seats
------
The trading volume ranking list on March 22 shows that Zhejiang Jinke Peroxides Co., Ltd. (300459.SZ) was bought through three institutional seats with a total of 155 million yuan, accounting for 20 percent of its intraday turnover.
Comment: SSN reported on March 20 that the CMEG 2016 was about to kick off. According to the Sport Information Center at the General Administration of Sport of China, this CMEG will draw extensive attention as it is the first e-sports competition specific to mobile terminal. The report of Industrial Securities Co., Ltd. also points out that there are various channels available for the e-sports industry in the entertainment Internet era. Jinke Peroxides is now promoting the acquisition of 100 percent equity of Hangzhou Zhe Xin IT Company, which is principally engaged in the launch and operation of mobile games.
[Trading Alarms]
○Copton Technology to launch IPO on March 23
------
Qingdao Copton Technology Company Limited (732798) will offer shares at 14.33 yuan per share with an upper limit of 10,000 shares for each applicant. The company's PE ratio is 17 times. Successful applicants should pay subscriptions on March 25.
TOP
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