[Today's Guide]
○ Companies held by local counterparts of SASAC witness frequent activities, value of shell expected to rise
○ NDRC supports construction of parking lot, importance of smart car parking highlighted
○ Guanfu Modern Household Wares to acquire plastics e-commerce company, Chuying Agro-Pastoral to develop e-sport industry
○ Shenglu Telecom. expects growth in Q1, TA＆A Ultra Clean Technology proposes high share conversion and dividend in annual report
[SSN Focus]
○ Companies held by local counterparts of SASAC witness frequent activities, value of shell expected to rise
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On March 29 night, Shang Gong Group Co., Ltd. (600843.SH), which has been suspended of trading, announced that its actual controller SASAC's Pudong new area branch proposed to publicly select assignee to transfer 10.94 percent of the company's total shareholding by agreement. This move may result in the change of control of the company. Shandong Lubei Chemical Co., Ltd. (600727.SH) announced that its substantial shareholder was planning to bring in strategic investors for mixed ownership reform and the company will suspend trading from March 30. Actual controller of the company is SASAC's branch in Wudi Country. Jiangxi Ganneng Co., Ltd. (000899.SZ), which is controlled by SASAC's Jiangxi branch, and Chongqing Sanxia Paints Co., Ltd. (000565.SZ), which is controlled by SASAC's Chongqing branch, also announced suspension of trading due to preparation for material reorganization.
Comment: recently, the pace of state-owned assets reform has apparently been accelerated. Thanks to the advantages of prevention of moral hazard and avoidance of losses of state-owned assets, to transfer equity in open market has become an important way for SASAC to disposal listed companies with poor performances. So far this year, Taiyuan Lionhead Cement Co., Ltd. (600539.SH), China Jialing Industrial Co., Ltd. (Group) (600877.SH) and Zhejiang Qianjiang Motorcycle Co., Ltd. (000913.SH) have consecutively planed transfer of controlling rights in the open market. China Securities is rosy about the value enhancement of shells of state assets controlled companies whose market capitalization are small, main business recorded continuous losses and the industries in which they operate in suffered severely excessive production capacity. According to statistics of SSN, Shandong Zhangqiu Blower Co., Ltd. (002598.SZ), Shanxi Sanwei Group Co., Ltd. (000755.SZ), Nanjing Textiles Import ＆ Export Corp., Ltd. (600250.SH), and Nafine Chemical Industry Group Co., Ltd. (000737.SZ) conform to the above conditions. Such companies planed material reorganizations but failed last year.
[SSN Selection]
○ The annual report of Bank of Communications Co., Ltd. (601328.SH) indicated that Wutongshu Investment Platform, which is wholly contributed by the State Administration of Foreign Exchange (SAFE), has become the eight biggest shareholder of the company. The institutions also appeared in the lists of top ten floating shareholders of Shanghai Pudong Development Bank Co., Ltd. (600000.SH) and Everbright Securities Company Limited (601788.SH).
○ The number of new investors has grown for the sixth consecutive week last week, but accounts with positions declined for the fourth consecutive month.
○ The National Development and Reform Commission (NDRC) on March 29 indicated that it had approved the power transmission and distribution price pilot reform in the first batch of five provinces, including Yunnan Province. The room for price reduction amounted to 5.56 billion yuan.
○ Information from the National Rare Earth Initiative held on March 29 says that the implementing plans of the establishment of large rare earth enterprise groups have been continuously reviewed and accepted.
○ Geeya Technology Co., Ltd. (300028.SZ) indicated on the investors' news briefing that it had not received the final investigation conclusion from the China Securities Regulatory Commission (CSRC), and will resume trading on March 30.
TOP
[Industry Information]
○ NDRC supports construction of parking lot, importance of intelligent car parking highlighted
------
The NDRC on March 29 issued Work Points and Assignment of Accelerating the Construction of Parking Lot in Urban Area in the near Term, which indicated to lower the admittance standards of construction and operation subjects and investment scale ; strengthen support to the construction of urban parking lot by finance; promote the integrated development of car parking and internet, support the development and promotion of internet car parking apps available on mobile terminals, and encourage car parking search before parking, parking lot reservation, realize automated charging and payment, and improve the utilization efficiency of car parking resources.
Comment: data indicated that the gap ratio of car parking lot in Beijing, Shanghai, Guangzhou and Shenzhen is 76.3 percent in average. In the meantime, the vacancy rate of parking lot is as high as 44.6 percent. As it can reorganize parking resources and effectively solve the parking problem, the importance of intelligent car parking is highlighted. In listed companies, Shenzhen Jieshun Science And Technology Industry Co., Ltd. (002609.SZ) works together with Alipay to develop intelligent parking; the company also indicated on the interactive platform that it had signed parking lot contract with Shanghai Disneyland; Guangdong Anjubao Digital Technology Co., Ltd. (300155.SZ) maintains a leading position in automatic recognition system of vehicle license and parking guidance system; the company plans to raise funds for cloud car parking projects through issuing additional shares.
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[Announcement Interpretation]
○ Guanfu Modern Household Wares to acquire plastics e-commerce company with RMB1.68 bln
------
Fujian Guanfu Modern Household Wares Co., Ltd. (002102.SZ) proposes to acquire 100 percent equities of Shanghai Sumi Information Technology Co., Ltd. at 1.68 billion yuan by issuing 115 million shares at 12.21 yuan per share to the counterparty and paying 277 million yuan in cash. Meanwhile, the company plans to raise 1.1 billion yuan by issuing share at 12.28 yuan per share through private placement. The current business of Sumi Information Technology is positioned as a plastic materials supply e-commerce platform in the "internet plus plastic material industries". The counterparty committed that its net profit from 2016 to 2018 will be no less than 115 million yuan, 150 million yuan and 225 million yuan, respectively.
○Chuying Agro-Pastoral to establish e-sport industrial investment fund with RMB500 mln
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Chuying Agro-Pastoral Group Co., Ltd. (002477.SZ) intends to jointly establish an e-sport industrial investment fund with Shanghai Jingyuan Investment Management Co., Ltd. The total size of the fund will be no more than 505 million yuan. The company will contribute 500 million yuan, accounting for 99 percent. The company will fully develop the e-sport industry with the professional experiences and advantageous resources of Jingyuan Investment Management and its team to foster new sources of profits. Chuying Agro-Pastoral expects to turn losses into profits in the first quarter with a profit of 100 to 110 million yuan.
○ Jingxin Phar. to develop international phar. and health industry with Silicon Paradise
------
Zhejiang Jingxin Pharmaceutical Co., Ltd. (002020.SZ), Zhejiang Silicon Paradise Asset Management Group and Heaven-Sent Capital Holding (Canada) Ltd. (HSC) signed a strategic cooperation agreement on international merger and acquisition. The company will develop international pharmaceutical and health industry with the help of the two companies.
TOP
[Financial Reports Express]
○ Shenglu Telecom. expects growth in Q1
------
Guangdong Shenglu Telecommunication Tech. Co., Ltd. (002446.SZ) expects an increase of 125 to 172 percent in the first quarterly report thanks to the consolidation of the financial statements of its subsidiary Nanjing Hengdian Electronics Co., Ltd. Shenzhen H＆T Intelligent Control Co., Ltd. (002402.SZ) expects an increase of 80 to 110 percent in the first quarterly report as a result of the excellent development of its main businesses. Jiangsu Bicon Pharmaceutical Listed Company (002411.SZ) expects an increase of 65 to 105 percent in the first quarterly report thanks to the consolidation of the financial statements of Bicon Pharmaceuticals. Shenzhen Jieshun Science And Technology Industry Co., Ltd. (002609.SZ) expects an increase of 150 to 200 percent in the first quarterly report as a result of the growth in its main businesses. Guangdong Silver Age Sci ＆ Tech Co., Ltd. (300221.SZ) expects an increase of 404 to 500 percent in the first quarterly report thanks to the surging main businesses. Holitech Technology Co., Ltd. (002217.SZ) expects an increase of 90 to 119 percent in the first quarterly report as a result of the consolidation of the financial statements of three subsidiaries.
○ TA＆A Ultra Clean Technology proposes high share conversion and dividend
------
Suzhou TA＆A Ultra Clean Technology Co., Ltd. (300390.SZ) expects an increase of 13 percent in performance and proposes a 15-for-10 conversion of capital surplus into shares combined with 2 yuan dividend for every 10 shares according to its annual report. Uroica Mining Safety Engineering Co., Ltd. (300099.SZ) expects an increase of 372 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. Hunan Fangsheng Pharmaceutical Co., Ltd. (603998.SH) expects an increase of 12 percent in performance and proposes a 20-for-10 conversion of capital surplus into shares combined with 2 yuan dividend for every 10 shares according to its annual report. Shanghai Runda Medical Technology Co., Ltd. (603108.SH) expects an increase of 22 percent in performance and proposes a 20-for-10 conversion of capital surplus into shares combined with 2 yuan dividend for every 10 shares according to its annual report. Zhejiang Wanfeng Auto Wheel Co., Ltd. (002085.SZ) expects an increase of 41 percent in performance and proposes an 8-for-10 conversion of capital surplus into shares combined with 2 shares and 0.5 yuan dividend for every 10 shares according to its annual report. Xi'an International Medical Investment Company Limited (000516.SZ) expects a decrease of 31 percent in performance and proposes a 15-for-10 conversion of capital surplus into shares combined with 0.5 yuan dividend for every 10 shares according to its annual report. Beijing Capital Co., Ltd. (600008.SH) expects a decrease of 27 percent in performance and proposes a 10-for-10 conversion of capital surplus into shares combined with 1.5 yuan dividend for every 10 shares according to its annual report. Puyang Huicheng Electronic Material Co., Ltd. (300481.SZ) expects an increase of 81 percent in performance and proposes a 10-for-10 conversion of capital surplus into shares combined with 5 yuan dividend for every 10 shares according to its annual report. It expects an increase of 5 to 20 percent in its first quarterly report.
Henan Shuanghui Investment ＆ Development Co., Ltd. (000895.SZ) expects an increase of 5 percent in performance and proposes 12.5 yuan dividend for every 10 shares according to its annual report. Hualan Biological Engineering, Inc. (002007.SZ) expects an increase of 9 percent in performance and proposes a 6-for-10 conversion of capital surplus into shares combined with 4 yuan dividend for every 10 shares according to its annual report. Shenzhen Everwin Precision Technology Co., Ltd. (300115.SZ) expects an increase of 55 percent in performance and proposes a 6-for-10 conversion of capital surplus into shares combined with 3 yuan dividend for every 10 shares according to its annual report. It expects an increase of 40 to 60 percent in its first quarterly report. Xinjiang Goldwind Science ＆ technology Co., Ltd. (02208.HK; 002202.SZ) expects an increase of 56 percent in performance and proposes 4.8 yuan dividend for every 10 shares according to its annual report. It expects an increase of 50 percent in its first quarterly report. Dalian Refrigeration Co., Ltd. (000530.SZ) expects an increase of 13 percent in performance and proposes a 5-for-10 conversion of capital surplus into shares combined with 1 yuan dividend for every 10 shares according to its annual report.
[Trading Alarms]
○ Dehong Automotive Electronic ＆ Electrical starts subscription on March 30
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Zhejiang Dehong Automotive Electronic ＆ Electrical Co., Ltd. (603701.SH) will issue shares 13.5 yuan per share with an upper subscription limit of 19,000 shares and a P/E ratio of 22 times. The payment day for lot-winners is April 1.
TOP
○ Companies held by local counterparts of SASAC witness frequent activities, value of shell expected to rise
○ NDRC supports construction of parking lot, importance of smart car parking highlighted
○ Guanfu Modern Household Wares to acquire plastics e-commerce company, Chuying Agro-Pastoral to develop e-sport industry
○ Shenglu Telecom. expects growth in Q1, TA＆A Ultra Clean Technology proposes high share conversion and dividend in annual report
[SSN Focus]
○ Companies held by local counterparts of SASAC witness frequent activities, value of shell expected to rise
------
On March 29 night, Shang Gong Group Co., Ltd. (600843.SH), which has been suspended of trading, announced that its actual controller SASAC's Pudong new area branch proposed to publicly select assignee to transfer 10.94 percent of the company's total shareholding by agreement. This move may result in the change of control of the company. Shandong Lubei Chemical Co., Ltd. (600727.SH) announced that its substantial shareholder was planning to bring in strategic investors for mixed ownership reform and the company will suspend trading from March 30. Actual controller of the company is SASAC's branch in Wudi Country. Jiangxi Ganneng Co., Ltd. (000899.SZ), which is controlled by SASAC's Jiangxi branch, and Chongqing Sanxia Paints Co., Ltd. (000565.SZ), which is controlled by SASAC's Chongqing branch, also announced suspension of trading due to preparation for material reorganization.
Comment: recently, the pace of state-owned assets reform has apparently been accelerated. Thanks to the advantages of prevention of moral hazard and avoidance of losses of state-owned assets, to transfer equity in open market has become an important way for SASAC to disposal listed companies with poor performances. So far this year, Taiyuan Lionhead Cement Co., Ltd. (600539.SH), China Jialing Industrial Co., Ltd. (Group) (600877.SH) and Zhejiang Qianjiang Motorcycle Co., Ltd. (000913.SH) have consecutively planed transfer of controlling rights in the open market. China Securities is rosy about the value enhancement of shells of state assets controlled companies whose market capitalization are small, main business recorded continuous losses and the industries in which they operate in suffered severely excessive production capacity. According to statistics of SSN, Shandong Zhangqiu Blower Co., Ltd. (002598.SZ), Shanxi Sanwei Group Co., Ltd. (000755.SZ), Nanjing Textiles Import ＆ Export Corp., Ltd. (600250.SH), and Nafine Chemical Industry Group Co., Ltd. (000737.SZ) conform to the above conditions. Such companies planed material reorganizations but failed last year.
[SSN Selection]
○ The annual report of Bank of Communications Co., Ltd. (601328.SH) indicated that Wutongshu Investment Platform, which is wholly contributed by the State Administration of Foreign Exchange (SAFE), has become the eight biggest shareholder of the company. The institutions also appeared in the lists of top ten floating shareholders of Shanghai Pudong Development Bank Co., Ltd. (600000.SH) and Everbright Securities Company Limited (601788.SH).
○ The number of new investors has grown for the sixth consecutive week last week, but accounts with positions declined for the fourth consecutive month.
○ The National Development and Reform Commission (NDRC) on March 29 indicated that it had approved the power transmission and distribution price pilot reform in the first batch of five provinces, including Yunnan Province. The room for price reduction amounted to 5.56 billion yuan.
○ Information from the National Rare Earth Initiative held on March 29 says that the implementing plans of the establishment of large rare earth enterprise groups have been continuously reviewed and accepted.
○ Geeya Technology Co., Ltd. (300028.SZ) indicated on the investors' news briefing that it had not received the final investigation conclusion from the China Securities Regulatory Commission (CSRC), and will resume trading on March 30.
TOP
[Industry Information]
○ NDRC supports construction of parking lot, importance of intelligent car parking highlighted
------
The NDRC on March 29 issued Work Points and Assignment of Accelerating the Construction of Parking Lot in Urban Area in the near Term, which indicated to lower the admittance standards of construction and operation subjects and investment scale ; strengthen support to the construction of urban parking lot by finance; promote the integrated development of car parking and internet, support the development and promotion of internet car parking apps available on mobile terminals, and encourage car parking search before parking, parking lot reservation, realize automated charging and payment, and improve the utilization efficiency of car parking resources.
Comment: data indicated that the gap ratio of car parking lot in Beijing, Shanghai, Guangzhou and Shenzhen is 76.3 percent in average. In the meantime, the vacancy rate of parking lot is as high as 44.6 percent. As it can reorganize parking resources and effectively solve the parking problem, the importance of intelligent car parking is highlighted. In listed companies, Shenzhen Jieshun Science And Technology Industry Co., Ltd. (002609.SZ) works together with Alipay to develop intelligent parking; the company also indicated on the interactive platform that it had signed parking lot contract with Shanghai Disneyland; Guangdong Anjubao Digital Technology Co., Ltd. (300155.SZ) maintains a leading position in automatic recognition system of vehicle license and parking guidance system; the company plans to raise funds for cloud car parking projects through issuing additional shares.
TOP
[Announcement Interpretation]
○ Guanfu Modern Household Wares to acquire plastics e-commerce company with RMB1.68 bln
------
Fujian Guanfu Modern Household Wares Co., Ltd. (002102.SZ) proposes to acquire 100 percent equities of Shanghai Sumi Information Technology Co., Ltd. at 1.68 billion yuan by issuing 115 million shares at 12.21 yuan per share to the counterparty and paying 277 million yuan in cash. Meanwhile, the company plans to raise 1.1 billion yuan by issuing share at 12.28 yuan per share through private placement. The current business of Sumi Information Technology is positioned as a plastic materials supply e-commerce platform in the "internet plus plastic material industries". The counterparty committed that its net profit from 2016 to 2018 will be no less than 115 million yuan, 150 million yuan and 225 million yuan, respectively.
○Chuying Agro-Pastoral to establish e-sport industrial investment fund with RMB500 mln
------
Chuying Agro-Pastoral Group Co., Ltd. (002477.SZ) intends to jointly establish an e-sport industrial investment fund with Shanghai Jingyuan Investment Management Co., Ltd. The total size of the fund will be no more than 505 million yuan. The company will contribute 500 million yuan, accounting for 99 percent. The company will fully develop the e-sport industry with the professional experiences and advantageous resources of Jingyuan Investment Management and its team to foster new sources of profits. Chuying Agro-Pastoral expects to turn losses into profits in the first quarter with a profit of 100 to 110 million yuan.
○ Jingxin Phar. to develop international phar. and health industry with Silicon Paradise
------
Zhejiang Jingxin Pharmaceutical Co., Ltd. (002020.SZ), Zhejiang Silicon Paradise Asset Management Group and Heaven-Sent Capital Holding (Canada) Ltd. (HSC) signed a strategic cooperation agreement on international merger and acquisition. The company will develop international pharmaceutical and health industry with the help of the two companies.
TOP
[Financial Reports Express]
○ Shenglu Telecom. expects growth in Q1
------
Guangdong Shenglu Telecommunication Tech. Co., Ltd. (002446.SZ) expects an increase of 125 to 172 percent in the first quarterly report thanks to the consolidation of the financial statements of its subsidiary Nanjing Hengdian Electronics Co., Ltd. Shenzhen H＆T Intelligent Control Co., Ltd. (002402.SZ) expects an increase of 80 to 110 percent in the first quarterly report as a result of the excellent development of its main businesses. Jiangsu Bicon Pharmaceutical Listed Company (002411.SZ) expects an increase of 65 to 105 percent in the first quarterly report thanks to the consolidation of the financial statements of Bicon Pharmaceuticals. Shenzhen Jieshun Science And Technology Industry Co., Ltd. (002609.SZ) expects an increase of 150 to 200 percent in the first quarterly report as a result of the growth in its main businesses. Guangdong Silver Age Sci ＆ Tech Co., Ltd. (300221.SZ) expects an increase of 404 to 500 percent in the first quarterly report thanks to the surging main businesses. Holitech Technology Co., Ltd. (002217.SZ) expects an increase of 90 to 119 percent in the first quarterly report as a result of the consolidation of the financial statements of three subsidiaries.
○ TA＆A Ultra Clean Technology proposes high share conversion and dividend
------
Suzhou TA＆A Ultra Clean Technology Co., Ltd. (300390.SZ) expects an increase of 13 percent in performance and proposes a 15-for-10 conversion of capital surplus into shares combined with 2 yuan dividend for every 10 shares according to its annual report. Uroica Mining Safety Engineering Co., Ltd. (300099.SZ) expects an increase of 372 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. Hunan Fangsheng Pharmaceutical Co., Ltd. (603998.SH) expects an increase of 12 percent in performance and proposes a 20-for-10 conversion of capital surplus into shares combined with 2 yuan dividend for every 10 shares according to its annual report. Shanghai Runda Medical Technology Co., Ltd. (603108.SH) expects an increase of 22 percent in performance and proposes a 20-for-10 conversion of capital surplus into shares combined with 2 yuan dividend for every 10 shares according to its annual report. Zhejiang Wanfeng Auto Wheel Co., Ltd. (002085.SZ) expects an increase of 41 percent in performance and proposes an 8-for-10 conversion of capital surplus into shares combined with 2 shares and 0.5 yuan dividend for every 10 shares according to its annual report. Xi'an International Medical Investment Company Limited (000516.SZ) expects a decrease of 31 percent in performance and proposes a 15-for-10 conversion of capital surplus into shares combined with 0.5 yuan dividend for every 10 shares according to its annual report. Beijing Capital Co., Ltd. (600008.SH) expects a decrease of 27 percent in performance and proposes a 10-for-10 conversion of capital surplus into shares combined with 1.5 yuan dividend for every 10 shares according to its annual report. Puyang Huicheng Electronic Material Co., Ltd. (300481.SZ) expects an increase of 81 percent in performance and proposes a 10-for-10 conversion of capital surplus into shares combined with 5 yuan dividend for every 10 shares according to its annual report. It expects an increase of 5 to 20 percent in its first quarterly report.
Henan Shuanghui Investment ＆ Development Co., Ltd. (000895.SZ) expects an increase of 5 percent in performance and proposes 12.5 yuan dividend for every 10 shares according to its annual report. Hualan Biological Engineering, Inc. (002007.SZ) expects an increase of 9 percent in performance and proposes a 6-for-10 conversion of capital surplus into shares combined with 4 yuan dividend for every 10 shares according to its annual report. Shenzhen Everwin Precision Technology Co., Ltd. (300115.SZ) expects an increase of 55 percent in performance and proposes a 6-for-10 conversion of capital surplus into shares combined with 3 yuan dividend for every 10 shares according to its annual report. It expects an increase of 40 to 60 percent in its first quarterly report. Xinjiang Goldwind Science ＆ technology Co., Ltd. (02208.HK; 002202.SZ) expects an increase of 56 percent in performance and proposes 4.8 yuan dividend for every 10 shares according to its annual report. It expects an increase of 50 percent in its first quarterly report. Dalian Refrigeration Co., Ltd. (000530.SZ) expects an increase of 13 percent in performance and proposes a 5-for-10 conversion of capital surplus into shares combined with 1 yuan dividend for every 10 shares according to its annual report.
[Trading Alarms]
○ Dehong Automotive Electronic ＆ Electrical starts subscription on March 30
------
Zhejiang Dehong Automotive Electronic ＆ Electrical Co., Ltd. (603701.SH) will issue shares 13.5 yuan per share with an upper subscription limit of 19,000 shares and a P/E ratio of 22 times. The payment day for lot-winners is April 1.
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