[Today's Guide]
○ Opinions on revitalizing northeast China to reveal soon, five bases to built
○ MOFCOM pushes for e-commerce legislation, mobile shopping to see development
○ Nanfang Black Sesame proposes high share conversion and dividend, Reorganization of Zhongtai Chemical approved
○ Jetsen Technology to control Star Era Media, Quantum Hi-Tech sees new actual controller
[SSN Focus]
○ Opinions on revitalizing northeast China to reveal soon, five bases to built
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The opinions on fully revitalizing northeast China and other old industrial bases of the the CPC Central Committee and State Council have been handed down to local governments and will be revealed to the public soon, Pan Liguo, mayor of Shenyang City, Liaoning Province, indicated on the Bo'ao Forum on March 23. The opinions raise the revitalization of the northeast China into a high strategic level and set the goal of "constructing one belt and five bases". The belt is national economic belt. Five bases are the advanced equipment manufacturing base and technology equipment base with international influence, national new material base, modernized agriculture base and national major science and technology innovation base.
Comment: The northeast China is a typical epitome of China's economy as China has to
simultaneously deal with the slowdown in economic growth, make difficult structural adjustments, and absorb the effects of previous economic stimulus policies. Currently, the economy of the northeast China has entered a critical period after experiencing many difficulties. Supporting measures will be gradually issued. Among A-share companies, Shenyang Machine Tool Co., Ltd. (000410.SZ) is one of the representative advanced manufacturing companies in the northeast China. Institutions are bullish about the outlook of the agricultural reclamation reform of Heilongjiang Agriculture Company Limited (600598.SH).
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[SSN Focus]
○ The first Lancang-Mekong cooperation leaders' meeting was convened on March 23. China proposed to strengthen inter-connectivity and accelerate the construction of China-Laos railway and China-Thailand railway.
○ Five ministries and commission proposed multiple financial measures to boost poverty relief, including promoting inclusive finance via mobile payment and electronic credit files.
○ Chongqing Municipality on March 22 issued the implementation opinions on accelerating the construction of shipping center in the upper reaches of Yangtze River, proposing to build a comprehensive three-dimensional transportation corridor along the river.
○ The ETFs on the ChiNext Board surged by nearly 400 million yuan to a new high since its establishment on March 22 and increased by an accumulative total of over one billion yuan in the recent week.
○ China United Network Communications Limited (600050.SH) indicated on March 23 that it has invested a total of 24.4 billion yuan to elevate broadband speed and will achieve the the objective of "elevating broadband speed and lowering Internet fees" one year in advance.
[Industry Information]
○ MOFCOM pushes for e-commerce legislation, mobile shopping to see development
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The Ministry of Commerce (MOFCOM) released the major tasks on e-commerce and informatization for 2016, proposing to push for the legislation of e-commerce and the construction of e-commerce credit system, actively participating in preparation of international rules on e-commerce; accelerate in introducing e-commerce into rural areas and communities, push for the development of cross-border e-commerce, strengthen cultivation of e-commerce talents; deeply push for the construction of demonstration bases, popularize typical experience of demonstration enterprises and promote pilot for the integrative development of e-commerce and logistics; conduct pilot for e-commerce big data, improve e-commerce statistics and monitoring system and push for the integration of e-government resources.
Comment: The document makes the legislation of e-commerce the top priority, which is expected to lay a foundation for the long-term healthy development of the industry. Institutions believe that online shopping has gradually moved from PC to mobile terminals. The viscosity of online shopping continued to increase. Wechat business and specialized apps are expected to see golden opportunities. Happigo Home Shopping Co.,ltd. (300413.SZ), a multimedia-based retail sales platform, launched its own app Happigo Shopping Mall. Better Life Commercial Chain Share Co., Ltd. (002251.SZ) plans to build an e-commerce platform and launched its own app Smart Monkey. Renrenle Commercial Group Co., Ltd. (002336.SZ) plans to build its own e-commerce platform and has launched a mobile shopping client terminal.
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○ Introduction of planning for e-commerce logistics development brings new opportunity for intelligent sorting industry
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The Planning for Development of Electronic Commerce Logistics in China (2016-2020), which was issued recently, proposes to basically form the high-efficiency e-commerce logistics system, make major progress in informatization, standardization and intensification development, advanced logistics equipment and technologies will see extensive application in the industry, and packaging recycling and utilization will be greatly improved by 2020.
Comment: Institutes believe that the massive development of online shopping market provides huge demand for e-commerce logistics. As its efficiency is more than 6 times that of manual work, the intelligent sorting system enjoys vast application in intelligent logistics industry with a market size of 30 billion-50 billion yuan. In terms of listed companies, Shanxi Oriental Material Handling Co., Ltd. (300486.SZ) is specialized in intelligent logistics conveying system. Inner Mongolia Yili Industrial Group Co., Ltd. (300230.SZ) enters intelligent sorting industry through holding 51 percent equity in Shanghai Xinba Automation Technology Co., Ltd.
[Financial Reports Express]
○ Nanfang Black Sesame proposes high share conversion and dividend
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Nanfang Black Sesame Group Co., Ltd. (000716.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. It also announced the termination of reorganization and resumed trading. Lingyuan Iron ＆ Steel Co., Ltd. (600231.SH) proposes a 9-for-10 conversion of capital surplus into shares combined with 1 share and 0.2 yuan dividend for every 10 shares according to its annual report. Xilong Scientific Co., Ltd. (002584.SZ) expects a growth of 17 percent in performance and proposes a 15-for-10 conversion of capital surplus into shares combined with 1 yuan dividend for every 10 shares according to its annual report. Victory Giant Technology (Huizhou) Co., Ltd. (300476.SZ) proposes a 15-for-10 conversion of capital surplus into shares combined with 3.5 yuan dividend for every 10 shares according to its annual report.
Shanghai Baosight Software Co., Ltd. (600845.SH) expects a decrease of 2.9 percent in performance and proposes a 10-for-10 conversion of capital surplus into shares combined with 2.5 yuan dividend for every 10 shares according to its annual report. Huayi Brothers Media Corporation (300027.SZ) expects a growth of 9 percent in performance and 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. BBMG Corporation (02009.HK; 601992.SH) expects a decrease of 17 percent in performance and proposes a 10-for-10 conversion of capital surplus into shares combined with 0.3 yuan dividend for every 10 shares according to its annual report.
○ Sinyang Semiconductor Materials expects growth in Q1
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Shanghai Sinyang Semiconductor Materials Co., Ltd. (300236.SZ) expects an increase of 109 to 137 percent in the firstly quarterly report thanks to the sales increase and the improved gross profit margin. Guomai Technologies, Inc. (002093.SZ) expects an increase of 50 to 100 percent in the firstly quarterly report thanks to the improvement in the technical service business.
CITIC Securities Company Limited(06030.HK; 600030.SH) expects an increase of 75 percent in net profit and proposes a 5 yuan dividend for every 10 shares according to its annual report. Kweichow Moutai Co., Ltd. (600519.SH) expects an increase of 1 percent in net profit and proposes a 61.71 yuan dividend for every 10 shares according to its annual report.
[Announcement Interpretation]
○ Reorganization of Zhongtai Chemical approved
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The merger, acquisition and reorganization of Xinjiang Zhongtai Chemical Co., Ltd. (002092.SZ) was unconditionally approved by the China Securities Regulatory Commission (CSRC). Wuxi Taiji Industry Company Ltd. (600667.SH) and Heilongjiang Heihua Co., Ltd. (600179.SH) were conditionally approved.
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○ Jetsen Technology to control Star Era Media
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Beijing Jetsen Technology Co., Ltd. (300182.SZ) intends to acquire 25 percent equities of Star Era Media Company with 525 million yuan. Its shareholding in the company will increase to 55 percent after the acquisition. The counterparty committed that the net profit of Star Era Media from 2016 to 2018 will be no less than 140 million yuan, 182 million yuan and 236.6 million yuan, respectively. Star Era Media invested in My Battalion and the SWAT in 2014 and 2015, which were among the most popular list of the year.
○ Quantum Hi-Tech sees new actual controller
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Quantum Group, the controlling shareholder of Quantum Hi-Tech (China) Biological Co., Ltd. (300149.SZ) with 24.09 percent equities, transferred all its shareholding in the listed company to Zeng Xianjing and other parties. Zeng and his concerted actors has controlled 19.46 percent equities of Quantum Hi-Tech and their shareholding will increase to 24.55 percent and will become new actual controllers of the company. The price of the transfer is 12.51 yuan per share, which is 90 percent of the close price of 13.90 yuan before trading suspension.
Comment: Zeng Xianjing was appointed as the general manager of the company in 2000 and has been the second biggest shareholder of the company. Zeng replaced Wang Congwei, the former actual controller, as the chairman of the company last May.
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○ Equities of Sunbird Yacht transferred to introduce M＆A fund
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Xiong Yan and Xu Yi, shareholders of Sunbird Yacht Co., Ltd. (300123.SZ), agreed to transfer 20.48 million shares of the company held them (7.18 percent shareholding) to Jiangsu Huatai Ruilian Merger and Acquisition Fund at 12 yuan per share with a total of about 246 million yuan. The contributor of the fund is Huatai Securities Co., Ltd. (601688.SH), which indicated that the acquisition of the shares is out of its optimism about the prospects of the company. The company closed at 13.35 yuan.
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