[Today's Guide]
○Priorities of economic system reform in 2016 determined with SOEs reform highlighted
○U.S. makes huge investment in R＆D of intelligent conscious UAV, indicating great potential in domestic market
○Guyuelongshan Shaoxing Wine raises some products prices, Bicon Phar.'s lithium hexafluorophosphate expansion project runs in full-load production
○Banbao proposes high share conversion and dividend, Net profits of Haowu Electromechanical and other firms to rise in Q1
[SSN Focus]
○Priorities of economic system reform in 2016 determined with SOEs reform highlighted
------
The National Development and Reform Commission (NDRC) released the full text of the Opinions on the Priorities of Deepening Economic System Reform in 2016 on March 31. "Striving to advance state-owned enterprises (SOEs) reform" ranks top among 10 priorities. The restructuring and establishment of state-owned capital investment and operation companies will be accelerated, and mixed-ownership reform will be piloted in key areas including power, oil, gas, railway, civil aviation and telecom. Compared with the opinions introduced last year, the opinion on the system reform of salt industry is upgraded from "propelling reform" to "launching reform schemes". And it is proposed for the first time that opinions on deepening reform in the construction industry and promoting industrial development should be launched.
Comment: Ever since six central enterprises are first selected to pilot the reform, acquisition, restructuring and private placement are frequently heard and are favored by the capital market. A new round of SOEs reform is underway since 2016. China Chengtong Holdings Group Ltd. and China Reform Holdings Corporation Ltd. are selected to pilot the form of state-owned capital operation company; the equities of several small-cap listed SOEs are publicly transferred by their substantial shareholders. Information shows that listed companies under China Chengtong Holdings include Guangdong Guanhao High-Tech Co., Ltd. (600433.SH), Yueyang Forest ＆ Paper Co., Ltd. (600963.SH) and etc.; China National Salt Industry Corporation is the actual controller of Inner Mongolia Lantai Industrial Co., Ltd. (600328.SH); Gansu Dunhuang Seed Co., Ltd. (600354.SH) and QingHai HuaDing Industrial Co., Ltd. (600243.SH) both failed to conduct major restructuring but their promise on no restructuring will soon expire.
◆As to the reform in capital market, the Opinions propose to move forward with the reform of stock and bond markets and increase the level of rule of law in their development, promote the sound development of the multilevel capital market, ensure that the proportion of direct financing is increased and launch the Shenzhen-Hong Kong Stock Connect at an appropriate time.
[SSN Selection]
○Timetable for the disclosure of Q1 report of companies listed on Shenzhen Stock Exchange is unveiled. Beijing UTour International Travel Service Co., Ltd. (002707.SZ), Xuzhou Wuyang Technology Co., Ltd. (300420.SZ) and Shanghai New Culture Media Group Co., Ltd. (300336.SZ) will be the first to release Q1 report on April 8.
○News spokesperson for the Ministry of National Defense responded to the expenditure on national defense on March 31 and indicated that in-depth development of civil-military integration is one of the five priorities.
○Securities traders include China Galaxy Securities Co., Ltd. and Haitong Securities Company Limited (600837.SH; 06837.HK) recently all eased the risk control indicators on margin financing and securities lending by lifting conversion rate, helping to boost customers' enthusiasm in financing.
○The supply-demand index for bulk commodity released by SunSirs Commodity Data Group in March climbs to a new high since it was recorded, showing that economic vitality of manufacturing industry is obviously picking up.
○SSN learns that the negative value of the overnight short-term interest of offshore RMB on March 31 was caused by the annual account of Hong Kong companies. Guosen Securities (Hong Kong) Financial Holdings Co., Ltd. dismissed the rumor of bond defaults.
TOP
[Industry Information]
○U.S. makes huge investment in R＆D of intelligent conscious UAV, indicating great potential in domestic market
------
As reported by foreign media, the Pentagon recently released a video clip on swarm unmanned aerial vehicle (UAV). This 3D-printing micro UAV can be launched via F-16 and F A/18 fighters and launched to the sky by throwing or slingshot on the ground. With situational consciousness and capability, this kind of UAV can detect teammates based on the actual battlefield situations and form a swarm formation. It is reported that the experiment is conducted under the leadership by the strategic capability office of the U.S. Department of Defense, and the project costs about 20 million U.S. dollars.
Comment: The research report by Gf Securities points out that estimated on the condition that China's ability in this area catches up with that of the U.S. in 2014 after 10 years, China's investment in UAV for military use can reach above 16 percent in next 10 years. Since the civil-military integration is raised to a national strategy, the UAV industry will achieve explosive growth. As an important link of the civil-military integration, UAV is favored by various capitals. As to listed companies, Sunward Intelligent Equipment Co., Ltd. (002097.SZ) has committed to the research and development of military UAV for long; CKY UAV developed by Shandong Mining Machinery Group Co., Ltd. (002526.SZ) has finished the second stage of test flight.
TOP
[Announcement Interpretation]
○Guyuelongshan Shaoxing Wine raises some products prices
------
According to the status of demand and supply, Zhejiang Guyuelongshan Shaoxing Wine Co., Ltd. (600059.SH) raised prices of some products gradually since March 15, whose sales amount totaled about 220 million yuan in 2015. The company raised prices of some ordinary wine by 12-14 percent, those of traditional 500ml wine products by 7-10 percent and those of another kind of 500ml wine products by 5-6 percent.
○Bicon Phar.'s lithium hexafluorophosphate expansion project runs in full-load production
------
An announcement of Jiangsu Bicon Pharmaceutical Listed Company (002411.SZ) indicates that the company's lithium hexafluorophosphate expansion project phase II has been put into operation, increasing the whole production capacity to 2,000 tons per year. The project now has run in full-load production.
Comment: The demand has exceeded supply after price of lithium hexafluorophosphate began to surge since the fourth quarter of last year. The full-load production will improve the company's performance. Meanwhile, the company's lithium hexafluorophosphate expansion project to enhance annual production capacity with 3,000 tons is under progress.
○Sinosteel wins big Bolivian order
------
Sinosteel Equipment ＆ Engineering Co., Ltd., wholly-owned subsidiary of Sinosteel Engineering ＆ Technology Co., Ltd. (000928.SZ), signed a contract on engineering procurement construction (EPC) of a comprehensive steel plant with annual production of 150,000 tons of steel with Bolivian company Empresa Siderurgica del Mutun (ESM). The total contract amount reaches 420 million U.S. dollars (equivalent to about 2,731 million yuan), accounting for 28 percent of the company's operating revenue in 2015.
○Sunasia Tourism partners with several companies to implement big whale plan
------
Dalian Sunasia Tourism Holding Co., Ltd. (600593.SH) signed strategic cooperation framework agreement with Dalian Yingyi Investment Center (Limited Partnership), Dalian Explorer Venture Capital Co. Ltd. and Beijing Huamao Shengyou Investment Management Co., Ltd. respectively, which the company launches private placement specific to. Relevant parties will take their resources and advantages in cultural industrial investment and platform construction to help the company develop middle downstream product portfolios of "big whale plan", promote their strategic cooperation in product upgrading such as cultural industrial chain of the "big whale plan" and transforming and operating whale MALL and promote their respective strategic cooperation in non-banking financing field among the "big whale plan" product portfolio.
○Huaxiang Electronic acquire equities of two firms at RMB1.9 bln
------
Ningbo Huaxiang Electronic Co., Ltd. (002048.SZ) plans to acquire 100 percent equity of Ningbo Lawrence Auto Inner Trims Co., Ltd. (with an evaluation of 1.37 billion yuan) and 93.63 percent equity of Shanghai Global Precision Mould ＆ Plastics Co., Ltd. (with an evaluation of 610 million yuan) by issuing 147 million shares at 13.51 yuan per share. The company also intends to raise 1.9 billion yuan by issuing 127 million shares at no less than 14.91 yuan per share through private placement. The counterparty promises net profit of Lawrence Auto Inner Trims will be 151 million yuan, 124 million yuan, 169 million yuan and 197 million yuan, and that of Global Precision Mould ＆ Plastics will be 48.34 million yuan, 71.75 million yuan, 92.89 million yuan and 110 million yuan during 2016 and 2019 respectively.
TOP
[Financial Reports Express]
○Banbao proposes high share conversion and dividend
------
Controlling shareholder of Banbao Co., Ltd. (603398.SH) proposes a 12-for-10 conversion of capital surplus into shares combined with 2.1 yuan dividend for every 10 shares. Net profit of Dingli Corp., Ltd. (300050.SZ) goes up by 161 percent in 2015 and is predicted to increase by 10-40 percent in the first quarter. The company 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. Net profit of CNHTC Jinan Truck Co., Ltd. (000951.SZ) declines by 35 percent in 2015 and the company proposes a 6-for-10 conversion of capital surplus into shares combined with 2 yuan dividend for every 10 shares according to its annual report.
○Net profits of Haowu Electromechanical and other firms to rise in Q1
------
Net profit of Sichuan Haowu Electromechanical Co., Ltd. (002502.SZ) rises by 250 percent in 2015 and is expected to jump by 310-360 percent in the first quarter mainly owing to contribution of film and TV projects. As cost drops resulting from improvement in craft technology, net profit of Tianjin Zhonghuan Semiconductor Co., Ltd. (002129.SZ) is predicted to hike by 194-223 percent in the first quarter. Net profit of Hengyi Petrochemical Co., Ltd. (000703.SZ) goes up by 156 percent in 2015 and is expected to jump by 192-289 percent in the first quarter mainly thanks to improvement in PTA industrial prosperity. In addition, Wangsu Science ＆ Technology Co., Ltd. (300017.SZ) revised its expected profit growth to be 60-90 percent in the first quarter as it gained subsidiary of 28.32 million yuan from people's government of Jiading District of Shanghai Municipality.
[Publication Suspension]
○Based on the holiday schedules of Shanghai and Shenzhen stock exchanges, the SSN Early Bird will suspend publication on April 3 and will resume publication on April 4.
TOP
○Priorities of economic system reform in 2016 determined with SOEs reform highlighted
○U.S. makes huge investment in R＆D of intelligent conscious UAV, indicating great potential in domestic market
○Guyuelongshan Shaoxing Wine raises some products prices, Bicon Phar.'s lithium hexafluorophosphate expansion project runs in full-load production
○Banbao proposes high share conversion and dividend, Net profits of Haowu Electromechanical and other firms to rise in Q1
[SSN Focus]
○Priorities of economic system reform in 2016 determined with SOEs reform highlighted
------
The National Development and Reform Commission (NDRC) released the full text of the Opinions on the Priorities of Deepening Economic System Reform in 2016 on March 31. "Striving to advance state-owned enterprises (SOEs) reform" ranks top among 10 priorities. The restructuring and establishment of state-owned capital investment and operation companies will be accelerated, and mixed-ownership reform will be piloted in key areas including power, oil, gas, railway, civil aviation and telecom. Compared with the opinions introduced last year, the opinion on the system reform of salt industry is upgraded from "propelling reform" to "launching reform schemes". And it is proposed for the first time that opinions on deepening reform in the construction industry and promoting industrial development should be launched.
Comment: Ever since six central enterprises are first selected to pilot the reform, acquisition, restructuring and private placement are frequently heard and are favored by the capital market. A new round of SOEs reform is underway since 2016. China Chengtong Holdings Group Ltd. and China Reform Holdings Corporation Ltd. are selected to pilot the form of state-owned capital operation company; the equities of several small-cap listed SOEs are publicly transferred by their substantial shareholders. Information shows that listed companies under China Chengtong Holdings include Guangdong Guanhao High-Tech Co., Ltd. (600433.SH), Yueyang Forest ＆ Paper Co., Ltd. (600963.SH) and etc.; China National Salt Industry Corporation is the actual controller of Inner Mongolia Lantai Industrial Co., Ltd. (600328.SH); Gansu Dunhuang Seed Co., Ltd. (600354.SH) and QingHai HuaDing Industrial Co., Ltd. (600243.SH) both failed to conduct major restructuring but their promise on no restructuring will soon expire.
◆As to the reform in capital market, the Opinions propose to move forward with the reform of stock and bond markets and increase the level of rule of law in their development, promote the sound development of the multilevel capital market, ensure that the proportion of direct financing is increased and launch the Shenzhen-Hong Kong Stock Connect at an appropriate time.
[SSN Selection]
○Timetable for the disclosure of Q1 report of companies listed on Shenzhen Stock Exchange is unveiled. Beijing UTour International Travel Service Co., Ltd. (002707.SZ), Xuzhou Wuyang Technology Co., Ltd. (300420.SZ) and Shanghai New Culture Media Group Co., Ltd. (300336.SZ) will be the first to release Q1 report on April 8.
○News spokesperson for the Ministry of National Defense responded to the expenditure on national defense on March 31 and indicated that in-depth development of civil-military integration is one of the five priorities.
○Securities traders include China Galaxy Securities Co., Ltd. and Haitong Securities Company Limited (600837.SH; 06837.HK) recently all eased the risk control indicators on margin financing and securities lending by lifting conversion rate, helping to boost customers' enthusiasm in financing.
○The supply-demand index for bulk commodity released by SunSirs Commodity Data Group in March climbs to a new high since it was recorded, showing that economic vitality of manufacturing industry is obviously picking up.
○SSN learns that the negative value of the overnight short-term interest of offshore RMB on March 31 was caused by the annual account of Hong Kong companies. Guosen Securities (Hong Kong) Financial Holdings Co., Ltd. dismissed the rumor of bond defaults.
TOP
[Industry Information]
○U.S. makes huge investment in R＆D of intelligent conscious UAV, indicating great potential in domestic market
------
As reported by foreign media, the Pentagon recently released a video clip on swarm unmanned aerial vehicle (UAV). This 3D-printing micro UAV can be launched via F-16 and F A/18 fighters and launched to the sky by throwing or slingshot on the ground. With situational consciousness and capability, this kind of UAV can detect teammates based on the actual battlefield situations and form a swarm formation. It is reported that the experiment is conducted under the leadership by the strategic capability office of the U.S. Department of Defense, and the project costs about 20 million U.S. dollars.
Comment: The research report by Gf Securities points out that estimated on the condition that China's ability in this area catches up with that of the U.S. in 2014 after 10 years, China's investment in UAV for military use can reach above 16 percent in next 10 years. Since the civil-military integration is raised to a national strategy, the UAV industry will achieve explosive growth. As an important link of the civil-military integration, UAV is favored by various capitals. As to listed companies, Sunward Intelligent Equipment Co., Ltd. (002097.SZ) has committed to the research and development of military UAV for long; CKY UAV developed by Shandong Mining Machinery Group Co., Ltd. (002526.SZ) has finished the second stage of test flight.
TOP
[Announcement Interpretation]
○Guyuelongshan Shaoxing Wine raises some products prices
------
According to the status of demand and supply, Zhejiang Guyuelongshan Shaoxing Wine Co., Ltd. (600059.SH) raised prices of some products gradually since March 15, whose sales amount totaled about 220 million yuan in 2015. The company raised prices of some ordinary wine by 12-14 percent, those of traditional 500ml wine products by 7-10 percent and those of another kind of 500ml wine products by 5-6 percent.
○Bicon Phar.'s lithium hexafluorophosphate expansion project runs in full-load production
------
An announcement of Jiangsu Bicon Pharmaceutical Listed Company (002411.SZ) indicates that the company's lithium hexafluorophosphate expansion project phase II has been put into operation, increasing the whole production capacity to 2,000 tons per year. The project now has run in full-load production.
Comment: The demand has exceeded supply after price of lithium hexafluorophosphate began to surge since the fourth quarter of last year. The full-load production will improve the company's performance. Meanwhile, the company's lithium hexafluorophosphate expansion project to enhance annual production capacity with 3,000 tons is under progress.
○Sinosteel wins big Bolivian order
------
Sinosteel Equipment ＆ Engineering Co., Ltd., wholly-owned subsidiary of Sinosteel Engineering ＆ Technology Co., Ltd. (000928.SZ), signed a contract on engineering procurement construction (EPC) of a comprehensive steel plant with annual production of 150,000 tons of steel with Bolivian company Empresa Siderurgica del Mutun (ESM). The total contract amount reaches 420 million U.S. dollars (equivalent to about 2,731 million yuan), accounting for 28 percent of the company's operating revenue in 2015.
○Sunasia Tourism partners with several companies to implement big whale plan
------
Dalian Sunasia Tourism Holding Co., Ltd. (600593.SH) signed strategic cooperation framework agreement with Dalian Yingyi Investment Center (Limited Partnership), Dalian Explorer Venture Capital Co. Ltd. and Beijing Huamao Shengyou Investment Management Co., Ltd. respectively, which the company launches private placement specific to. Relevant parties will take their resources and advantages in cultural industrial investment and platform construction to help the company develop middle downstream product portfolios of "big whale plan", promote their strategic cooperation in product upgrading such as cultural industrial chain of the "big whale plan" and transforming and operating whale MALL and promote their respective strategic cooperation in non-banking financing field among the "big whale plan" product portfolio.
○Huaxiang Electronic acquire equities of two firms at RMB1.9 bln
------
Ningbo Huaxiang Electronic Co., Ltd. (002048.SZ) plans to acquire 100 percent equity of Ningbo Lawrence Auto Inner Trims Co., Ltd. (with an evaluation of 1.37 billion yuan) and 93.63 percent equity of Shanghai Global Precision Mould ＆ Plastics Co., Ltd. (with an evaluation of 610 million yuan) by issuing 147 million shares at 13.51 yuan per share. The company also intends to raise 1.9 billion yuan by issuing 127 million shares at no less than 14.91 yuan per share through private placement. The counterparty promises net profit of Lawrence Auto Inner Trims will be 151 million yuan, 124 million yuan, 169 million yuan and 197 million yuan, and that of Global Precision Mould ＆ Plastics will be 48.34 million yuan, 71.75 million yuan, 92.89 million yuan and 110 million yuan during 2016 and 2019 respectively.
TOP
[Financial Reports Express]
○Banbao proposes high share conversion and dividend
------
Controlling shareholder of Banbao Co., Ltd. (603398.SH) proposes a 12-for-10 conversion of capital surplus into shares combined with 2.1 yuan dividend for every 10 shares. Net profit of Dingli Corp., Ltd. (300050.SZ) goes up by 161 percent in 2015 and is predicted to increase by 10-40 percent in the first quarter. The company 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. Net profit of CNHTC Jinan Truck Co., Ltd. (000951.SZ) declines by 35 percent in 2015 and the company proposes a 6-for-10 conversion of capital surplus into shares combined with 2 yuan dividend for every 10 shares according to its annual report.
○Net profits of Haowu Electromechanical and other firms to rise in Q1
------
Net profit of Sichuan Haowu Electromechanical Co., Ltd. (002502.SZ) rises by 250 percent in 2015 and is expected to jump by 310-360 percent in the first quarter mainly owing to contribution of film and TV projects. As cost drops resulting from improvement in craft technology, net profit of Tianjin Zhonghuan Semiconductor Co., Ltd. (002129.SZ) is predicted to hike by 194-223 percent in the first quarter. Net profit of Hengyi Petrochemical Co., Ltd. (000703.SZ) goes up by 156 percent in 2015 and is expected to jump by 192-289 percent in the first quarter mainly thanks to improvement in PTA industrial prosperity. In addition, Wangsu Science ＆ Technology Co., Ltd. (300017.SZ) revised its expected profit growth to be 60-90 percent in the first quarter as it gained subsidiary of 28.32 million yuan from people's government of Jiading District of Shanghai Municipality.
[Publication Suspension]
○Based on the holiday schedules of Shanghai and Shenzhen stock exchanges, the SSN Early Bird will suspend publication on April 3 and will resume publication on April 4.
TOP
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