[Today's Guide]
○Three A-share investment platforms under SAFE enter stock market, holding market value worth RMB27.1 bln
○Prices of refrigerants all hike, Alisports launches electronic sports games
○Comix Group to acquire Inpor Cloud Computing, Chj Industry gains authorization from Walt Disney
○Assets restructuring proposals of Perfect World Pictures and others approved, net profits of Aotecar New Energy Technology and others to surge in Q1
[SSN Focus]
○Three A-share investment platforms under SAFE enter stock market, holding market value worth RMB27.1 bln
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SSN learnt through investigation that three A-share investment platforms under the State Administration of Foreign Exchange (SAFE) entered the A-share market in the fourth quarter of last year, and they appeared on the top 10 shareholders list of 10 companies that have unveiled their annual reports as of March 30. These 10 companies cover central enterprises engaged in the financial industry such as Industrial and Commercial Bank of China Limited (601398.SH; 01398.HK) and Bank of China Limited (601988.SH), central enterprises engaged in machinery industry, military industry and etc. as well as listed companies controlled by local State-owned Assets Supervision and Administration Commissions in Shanghai, Nanjing and etc. Calculation based on the latest closing prices shows that the market value held by the three platforms totals 27.1 billion yuan if the shareholding remains unchanged since the beginning of the year.
◆Jiang Jianqing, chairman of Industrial and Commercial Bank of China (ICBC), indicated on the performance press conference held on March 30 that all qualified investors are welcomed for investment in ICBC. Timely information disclosure will be conducted if necessary.
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[SSN Selection]
○The executive meeting of the State Council held on March 30 has determined to newly establish three national independent innovation demonstration zones and to speed up the construction of the center for technology and innovation in Shanghai.
○The central bank and the China Banking Regulatory Commission (CBRC) jointly released guidance on March 30, requiring stepping up financial support to areas including consumption loan and automobile loan.
○The fourth Nuclear Security Summit is scheduled to take place in Washington, D.C., from March 31. Some topics related to nuclear power security are expected to be discussed.
○The National Development and Reform Commission (NDRC) on March 30 issued the Guidance on Promoting the Development and Reform of Private Economy in Northeast China, encouraging Liaoning province to take the lead in piloting intelligent manufacturing and etc.
○Controlling shareholder of Guangdong Macro Co., Ltd. (000533.SZ) transferred 17.37 percent equities of the company to Guangzhou Huifu Boyan Investment Limited Partnership, meaning that Huifu Boyan Investment becomes the new largest shareholder of Guangdong Macro.
[Industry Information]
○Improving demand overlaps with supply-side reform, prices of refrigerants all hike
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SSN learns that driven by improving downstream demand, the prices of refrigerants all hiked on March 29 with prices of R22 and R134a soaring by 3 percent and 2.7 percent, respectively. The price of R125a also surged. Relevant manufacturers indicate that since work load is maintained at a low level for quite some time, manufacturers' inventories have been decreased to a low level. In the meantime, foreign trade sees sound progress and there is no pressure on supply yet. Manufacturers show obvious expectation on further price hike in April.
Comment: Besides, the 13th five-year plan for fluorine chemical industry has been worked out. Measures including controlling scale as well as conducting industrial transformation and upgrading will be taken to preliminarily build China into a powerhouse of fluorine chemical. Driven by the supply-side reform, the supply-demand structure of the fluorine chemical industry might take a turn for the better. As to listed companies, Shanghai 3F New Materials Company Limited (600636.SH) and Zhejiang Juhua Co., Ltd. (600160.SH), leading domestic companies engaged in the fluorine chemical industry, have relatively perfect industrial chain and actively expand to fluorine chemical new material business.
○Alisports launches electronic sports games, industry to embrace explosive growth
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On the press conference held on March 30, Alisports Group officially introduced its electronic sports business division, announced the launch of the World Electronic Sports Games (WESG) and established an open platform for electronic sports. It is learnt that the first batch of sports events will cover hot games including DOTA2, Counter-Strike, StarCraft 2 and Hearth Stone, and the total bonus will surpass 5.5 million U.S. dollars. The WESG will be opened in April and the global final will be held in China in December. Countries across the world are welcomed to apply to host the next session. Alisports will totally invest over 100 million yuan in it.
Comment: Institutions point out that as the government eases its attitude towards electronic sports in recent years, domestic electronic sports market tends to be more professional and market-oriented. They might move closer to traditional sports markets with clear commercial modes including football and basketball and expect explosive growth. As to listed companies, Lander Sports Development Co., Ltd. (000558.SZ) makes arrangement in electronic sports events, electronic sports platforms and etc. via its subsidiary; the multi-screen platform developed by Kingnet Network Co., Ltd. (002517.SZ) is a platform focusing on mobile TV competitive games; Hangzhou Shunwang Technology Co., Ltd. (300113.SZ) is involved in the operation of electronic sports events.
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[Announcement Interpretation]
○Comix Group to raise RMB1.1 bln through private placement to acquire Inpor Cloud Computing
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Shenzhen Comix Group Co., Ltd. (002301.SZ) plans to raise 1.1 billion yuan by issuing 76.28 million shares at 14.42 yuan per share through private placement to invest in its office e-commerce service platform project and acquirer 100 percent equity of Shenzhen Inpor Cloud Computing Co., Ltd. Inpor Cloud Computing is a leading provider of cloud video conference SaaS service and embark on business relying on the famous brand FastMeeting, a video conferencing software. The counterparty promises that net profits of the company will be 46 million yuan, 60 million yuan and 78 million yuan during 2016 and 2018 respectively. Acquiring Inpor Cloud Computing will offer support to Comix Group's office e-commerce service platform in terms of software service content.
○Chj Industry gains authorization from Walt Disney
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Guangdong Chj Industry Co., Ltd. (002345.SZ) signed license agreement with The Walt Disney Company in August 2015, entitled to use the trademarks of "迪士尼" and "DISNEY" and four prototypes including Alice in Wonderland, Alice in Wonderland (live action film), Bambi and Marie, on precious jewelries and other accessories. Various jewelries based on the prototypes of Bambi and Marie (Disney Marie Cat) have been introduced and other products will hit the market in succession in 2016.
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○Assets restructuring proposals of Perfect World Pictures and others approved
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Assets acquisition and other major restructuring matters of Perfect World Pictures Co., Ltd. (002624.SZ), Zhejiang Yonggui Electric Equipment Co., Ltd. (300351.SZ) and Genimous Investment Co., Ltd. (000676.SZ) have been unconditionally approved by China Securities Regulatory Commission. Perfect World Pictures turns losses into profits in the first quarter.
○Wuhan Double partners with Guangdong Advertising Group to develop sports industry
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Desports, a wholly-owned subsidiary of Wuhan Double Co., Ltd. (600136.SH), signed strategic cooperation framework agreement with Guangdong Advertising Group Co., Ltd. (002400.SZ). They plan to conduct in-depth cooperation in sports marketing, sports copyright and making, sports supporting facilities and derivative industry, sports technology and R＆D, sports assets acquisition and operation and other fields.
○Hongda Xingye to raise RMB2.7 bln through private placement to invest in environmental protection products
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Hongda Xingye Co., Ltd. (002002.SZ) intends to raise 2.72 billion yuan by issuing 188 million shares at a floor price of 14.42 yuan per share through private placement to invest in soil restoration project, PVC eco-friendly homes and environmental protection material project, chlor-alkali industry-based supply chain management and pay debts. The company's controlling shareholder Hongda Xingye Group will subscribe 20 percent shares in this private placement.
○Huagong Tech to raise RMB1.8 bln through private placement to invest in intelligent equipment industry
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Huagong Tech Company Limited (000988.SZ) proposes to raise 1,807 million yuan by issuing 120 million shares at more than 15.86 yuan per share through private placement to invest in four projects including industrialization of intelligent equipment of laser precision micro-nano machining so as to improve the company's competitiveness and market shares of high-power laser and products related to photoelectricity.
[Financial Reports Express]
○Net profits of Aotecar New Energy Technology and others to surge in Q1
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Net profit of Aotecar New Energy Technology Co., Ltd. (002239.SZ) is expected to jump by 3,482 percent-3,693 percent in the first quarter mainly owing to the consolidated financial statements with Nanjing Aotecar New Energy Technology Co., Ltd. As feeding costs of commercial broilers declines, net profit of Shandong Xiantan Co., Ltd. (002746.SZ) is expected to hike by 699 percent-740 percent in the first quarter. Net profit of Shandong Fin Cnc Machine Co., Ltd. (002270.SZ) is expected to move up by 808 percent-997 percent in the first quarter thanks to the consolidated financial statements with Shanghai Huaming Power Equipment Co., Ltd.
Resulted from the consolidated financial statements with Jiangsu Huayuan New Energy Technology Co., Ltd., net profit of Shenzhen Jiawei Photovoltaic Lighting Co., Ltd. (300317.SZ) rises by 1,575 percent in 2015 and is predicted to edge up by 761 percent-791 percent in the first quarter. Net profit of Rongsheng Petro Chemical Co., Ltd. (002493.SZ) is expected to surge by 741 percent-1,044 percent in the first quarter contributed by the periodic recovery of PTA industry. Net profit of Rongxin Power Electronic Co., Ltd. (002123.SZ) is expected to hike by 476 percent-524 percent in the first quarter thanks to the consolidated financial statements with Shenzhen City Montnet Technology Development Co. Ltd.
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○Yifan Xinfu Phar. and other firms propose high share conversion and dividend
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Net profit of Yifan Xinfu Pharmaceutical Co., Ltd. (002019.SZ) goes up by 52 percent in 2015 and the company 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. Its net profit is predicted to increase by 50-80 percent in the first quarter.
Net profit of Beijing Interact Technology Co., Ltd. (300419.SZ) soars by 7 percent in 2015 and the company proposes a 28-for-10 conversion of capital surplus into shares combined with 5 yuan dividend for every 10 shares according to its annual report.
Net profit of Fujian Dongbai (Group) Co., Ltd. (600693.SH) drops by 66 percent in 2015 and the company proposes a 10-for-10 conversion of capital surplus into shares according to its annual report.
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