[Today's Guide]
○State-owned companies in Beijing-Tianjin-Hebei region intensively announce trading suspension, breakthroughs to made in coordinated industrial development
○Toyota and Microsoft cooperate in Internet-based vehicles, mobile payment embraces rapid development
○Selen Science ＆ Technology to acquire assets related to aluminum plastic package film for lithium battery, Enn Ecological to acquire United Faith Ventures
○Keyvia Electric and other firms propose high share conversion and dividend, Infotmic bought through 3 institutional seats
[SSN Focus]
○State-owned companies in Beijing-Tianjin-Hebei region intensively announce trading suspension, breakthroughs to made in coordinated industrial development
------
Tangshan Jidong Cement Co., Ltd. (000401.SZ) and Tangshan Jidong Equipment and Engineering Co., Ltd. (000856.SZ) received a notice from their actual controller the State-owned Assets Supervision and Administration Commission (SASAC) of Tangshan, while BBMG Corporation (601992.SH; 02009.SZ) received the notice from its substantial shareholder BBMG Group Co., Ltd. which is fully controlled by the SASAC of Beijing on April 5 evening. The notice claims that to boost coordinated development of Beijing-Tianjin-Hebei region and actively answer the call of intensifying supply-side reform, preventing and controlling air pollution and propelling industrial upgrading, the SASAC of Tangshan is mulling on strategic cooperation with BBMG Group. Since the aforesaid three companies might be involved in the cooperation, they will suspend trading from April 6. XuanHua Construction Machinery Co., Ltd. (000923.SZ) under Hebei Iron ＆ Steel Co., Ltd., which is actually controlled by the SASAC of Hebei Province, also announces trading suspension due to planning of major issues on the same day.
Comment: Both Jidong Cement and BBMG Corporation are principally engaged in cement industry which sees high energy consumption and pollution. The recently released Planning on National Economic and Social Development for Beijing-Tianjin-Hebei Region during "13th Five-Year Plan" Period proposes to make great advances in the structural adjustment of the Beijing-Tianjin-Hebei Region and obviously improve environment quality there. As the Tangshan International Horticultural Exposition 2016 will soon be opened and the Beijing 2022 Olympic Winter Games is under preparation, such industries enjoy huge potential in optimizing industrial arrangement and accelerating transformation and adjustment through reorganization and integration. As to other state-owned capital companies within the region, non-iron ＆ steel business under Hebei Iron and Steel Co., Ltd. (000709.SZ) and Beijing Shougang Co., Ltd. (000959.SZ) develops rapidly. Beijing Haohua Energy Resource Co., Ltd. (601101.SH) and Jizhong Energy Resources Co., Ltd. (000937.SZ) are leading local coal companies.
[SSN Selection]
○The Ministry of Commerce on April 5 banned purchases of coal, iron ore and several other raw minerals from the Democratic People's Republic of Korea (DPRK). Material shows that DPRK is one of the main sources of China's imported coal.
○A special seminar on risk control in securities companies was held on April 5, proposing to optimize and adjust relevant indicators for business already seeing standard development and high-level standardization.
○China Information Technology Expo (CITE) 2016 will be opened on April 8 and it will focus on such fields as sensor, artificial intelligence (AI), robotics, virtual reality (VR) and etc.
○MDI (diphenyl-methane-diisocyanate) giants at home and abroad including Wanhua Chemical Group Co., Ltd. (600309.SH) and Shanghai BASF all raised their asking prices in April with the highest price hike set at nearly 6 percent.
○The State-owned Assets Supervision and Administration Commission (SASAC) of Zhejiang province recently released the classified supervision policies for state-owned enterprises controlled Zhejiang. Companies including Wuchan Zhongda Group Co., Ltd. (600704.SH), Hangzhou Iron ＆ Steel Group Company and Juhua Group Corporation are classified as competitive enterprises.
TOP
[Industry Information]
○Toyota and Microsoft cooperate in Internet-based vehicles, Internet of Vehicle to see rapid development
------
Foreign media reported that Toyota announced on April 5 that it will establish a data company and further cooperation with Microsoft in developing solutions to vehicles interconnection to make it more intelligent in parking. It was introduced that the services to be developed or expanded by the company include calculation of insurance coverage and rates according to driving modes, interconnected vehicle network that shares traffic and weather information, and information services customized for drivers' habit and preference.
Comment: The integration of vehicles and Internet can create various products and commercial models. Many governments and enterprises are actively making arrangement in this area. The Ministry of Industry and Information Technology (MIIT) once indicated that it will launch the Plan on the Development and Innovation Actions on Internet of Vehicle (2015-2020) to fully facilitate the technology R＆D and the formulation of standards of the Internet of vehicles as well as to propel the development of the whole industry. As to listed companies, subsidiary under United Electronics Co., Ltd. (002642.SZ) is engaged in the Internet of vehicles. Shenzhen Deren Electronic Co., Ltd. (002055.SZ) recently announces that it will provide Shenzhen Didi New Energy Vehicles Rental Co., Ltd. with the Internet of vehicles service.
○Central bank unveils overall operation status of payment system, mobile payment embraces rapid development
------
The central bank on April 5 unveiled the overall operation status of payment system in the fourth quarter of 2015. Data shows that electronic payment business maintained rapid growth and mobile payment business obviously surges. Banking financial institutions totally processed 30.381 billion deals of electronic payment business, totaling 586.47 trillion yuan, in the fourth quarter. Mobile payment business contributed 5.633 billion deals and 23.46 trillion yuan, representing a year-on-year growth of 245 percent and 208 percent, respectively.
Comment: Institutions believe that the transaction done through mobile payment takes up only 4.4 percent of national total transactions through electronic payment, while the figure hits around 19 percent globally. It is expected that business transactions will increase several times over in next three years. As to listed companies, Shenzhen Xinguodu Technology Co., Ltd. (300130.SZ) provides technical service for electronic payment of bank cards. MIAXIS BIOMETRICS Co., Ltd., a subsidiary under Xinguodu Technology, focuses on fingerprint identification and safety certificate system, and sees high market occupancy in financial industry; Newcapec Electronics Co., Ltd. (300248.SZ) takes the lead in making arrangement in NFC-related mobile phone clients and card applications.
TOP
[Announcement Interpretation]
○Selen Science ＆ Technology to acquire assets related to aluminum plastic package film for lithium battery at RMB550 mln
------
Shenzhen Selen Science ＆ Technology Co., Ltd. plans to purchase assets related to production of aluminum plastic package film for lithium battery of T＆T Enertechno at 9.5 yen (equivalent to about 550 million yuan). T＆T is a famous Japanese joint-stock company engaged in manufacturing and selling various external package material of lithium battery. This acquisition enables the company to own the technology producing aluminum plastic package film for lithium battery and establish new production line in function material industrial base in Changzhou city to realize localization replacing imports.
○Enn Ecological to participate in Australian petrol and gas manufacturer with RMB4.9 bln
------
Enn Ecological Holdings Co., Ltd. (600803.SH) plans to pay 4.9 billion yuan in cash to purchase 100 percent equity of United Faith Ventures Limited, which holds 11.72 percent equity of an Australian company Santos Limited. The company also plans to raise 3.3 billion yuan by issuing 289 million shares at 11.4 yuan per share through private placement specific to Dynamic Moon Limited, Hongyi 2015 (Shanghai) Investment Center (Limited Partnership) and Xinyi Holdings Co., Ltd. The fundraising will be used for the above-mentioned acquisition. As disclosed, Santos is a leading petrol and oil gas manufacturer in Australia and its major revenue mainly comes from Australia and Asia-Pacific region.
○Seg partners with Tencent to build platform for business incubator service
------
Shenzhen Seg Co., Ltd. (000058.SZ) signed cooperation agreement with Shenzhen Seg Chuangyehui Co., Ltd. and Tencent Holdings Ltd. (00700.HK) to conduct strategic cooperation by taking advantages of their own platform and resources. The three companies will join hand in hand to build Tencent laboratory showcase and establish benchmark in business incubator service with software and hardware.
Comment: The three companies cooperate in building a comprehensive service platform for entrepreneurship with incubator and investment, exhibiting and sell platform for hardware and practical and innovative hardware lab platform. This move is an important measure of Seg to set up the complete Seg Maker industry ecosystem, which will facilitate the company's leading role in maker industry and its transformation and upgrading.
○Huawei Technology cooperates with Hunan Intelligence in AI robot
------
Huawei Technology Co., Ltd. (002502.SZ) signed strategic cooperation agreement with Hunan Intelligence Robot Innovation Research Institute. They will conduct cooperation in the R＆D and production of artificial intelligence (AI) robot (industrial robot and entertainment robot).
TOP
[Financial Reports Express]
○Keyvia Electric and other firms propose high share conversion and dividend
------
Actual controller of Tianjin Keyvia Electric Co., Ltd. (300407.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. TianGuang Fire-Fighting Co., Ltd. (002509.SZ) proposes a 12-for-10 conversion of capital surplus into shares combined with 0.5 yuan dividend for every 10 shares. Kunming Longjin Pharmaceutical Co., Ltd. (002750.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. Hunan Er-Kang Pharmaceutical Co., Ltd. (300267.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.
○Net profit of CSG Holding expected to surge in Q1
------
Net profit of CSG Holding Co., Ltd. (000012.SZ) is expected to surge by 137-162 percent in the first quarter as solar photovoltaic industry keeps recovering. Net profit of Guangdong Shaoneng Group Co., Ltd. (000601.SZ) is expected to surge by 313-339 percent in the first quarter mainly contributed by the increasing performance of hydropower business.
[Trading Trends]
○Infotmic bought through 3 institutional seats
------
The trading volume ranking list on April 5 shows that Infotmic Co., Ltd. (000670.SZ) was bought through three institutional seats with a total of 176 million yuan, accounting for 20.4 percent of its intraday turnover, and was sold by one institutional seat at 11.12 million yuan.
Comment: Institutions believe that as a leading designer company in high-performance processor SOC chip in China, the company embarks on the core component supply system of virtual reality (VR) hardware by developing the chips for miniStation together with Tencent, which will boost the VR industry to boom.
[Trading Alarms]
○Doyin Pump Industry to launch IPO on April 6
------
Zhejiang Doyin Pump Industry Co., Ltd (002793.SZ) is going to launch IPO at price of 11.97 yuan per share with an upper limit of 10,000 shares for each account. The P/B ratio is 15 times. Investors who succeed in subscribing the new shares should pay on April 8.
TOP
○State-owned companies in Beijing-Tianjin-Hebei region intensively announce trading suspension, breakthroughs to made in coordinated industrial development
○Toyota and Microsoft cooperate in Internet-based vehicles, mobile payment embraces rapid development
○Selen Science ＆ Technology to acquire assets related to aluminum plastic package film for lithium battery, Enn Ecological to acquire United Faith Ventures
○Keyvia Electric and other firms propose high share conversion and dividend, Infotmic bought through 3 institutional seats
[SSN Focus]
○State-owned companies in Beijing-Tianjin-Hebei region intensively announce trading suspension, breakthroughs to made in coordinated industrial development
------
Tangshan Jidong Cement Co., Ltd. (000401.SZ) and Tangshan Jidong Equipment and Engineering Co., Ltd. (000856.SZ) received a notice from their actual controller the State-owned Assets Supervision and Administration Commission (SASAC) of Tangshan, while BBMG Corporation (601992.SH; 02009.SZ) received the notice from its substantial shareholder BBMG Group Co., Ltd. which is fully controlled by the SASAC of Beijing on April 5 evening. The notice claims that to boost coordinated development of Beijing-Tianjin-Hebei region and actively answer the call of intensifying supply-side reform, preventing and controlling air pollution and propelling industrial upgrading, the SASAC of Tangshan is mulling on strategic cooperation with BBMG Group. Since the aforesaid three companies might be involved in the cooperation, they will suspend trading from April 6. XuanHua Construction Machinery Co., Ltd. (000923.SZ) under Hebei Iron ＆ Steel Co., Ltd., which is actually controlled by the SASAC of Hebei Province, also announces trading suspension due to planning of major issues on the same day.
Comment: Both Jidong Cement and BBMG Corporation are principally engaged in cement industry which sees high energy consumption and pollution. The recently released Planning on National Economic and Social Development for Beijing-Tianjin-Hebei Region during "13th Five-Year Plan" Period proposes to make great advances in the structural adjustment of the Beijing-Tianjin-Hebei Region and obviously improve environment quality there. As the Tangshan International Horticultural Exposition 2016 will soon be opened and the Beijing 2022 Olympic Winter Games is under preparation, such industries enjoy huge potential in optimizing industrial arrangement and accelerating transformation and adjustment through reorganization and integration. As to other state-owned capital companies within the region, non-iron ＆ steel business under Hebei Iron and Steel Co., Ltd. (000709.SZ) and Beijing Shougang Co., Ltd. (000959.SZ) develops rapidly. Beijing Haohua Energy Resource Co., Ltd. (601101.SH) and Jizhong Energy Resources Co., Ltd. (000937.SZ) are leading local coal companies.
[SSN Selection]
○The Ministry of Commerce on April 5 banned purchases of coal, iron ore and several other raw minerals from the Democratic People's Republic of Korea (DPRK). Material shows that DPRK is one of the main sources of China's imported coal.
○A special seminar on risk control in securities companies was held on April 5, proposing to optimize and adjust relevant indicators for business already seeing standard development and high-level standardization.
○China Information Technology Expo (CITE) 2016 will be opened on April 8 and it will focus on such fields as sensor, artificial intelligence (AI), robotics, virtual reality (VR) and etc.
○MDI (diphenyl-methane-diisocyanate) giants at home and abroad including Wanhua Chemical Group Co., Ltd. (600309.SH) and Shanghai BASF all raised their asking prices in April with the highest price hike set at nearly 6 percent.
○The State-owned Assets Supervision and Administration Commission (SASAC) of Zhejiang province recently released the classified supervision policies for state-owned enterprises controlled Zhejiang. Companies including Wuchan Zhongda Group Co., Ltd. (600704.SH), Hangzhou Iron ＆ Steel Group Company and Juhua Group Corporation are classified as competitive enterprises.
TOP
[Industry Information]
○Toyota and Microsoft cooperate in Internet-based vehicles, Internet of Vehicle to see rapid development
------
Foreign media reported that Toyota announced on April 5 that it will establish a data company and further cooperation with Microsoft in developing solutions to vehicles interconnection to make it more intelligent in parking. It was introduced that the services to be developed or expanded by the company include calculation of insurance coverage and rates according to driving modes, interconnected vehicle network that shares traffic and weather information, and information services customized for drivers' habit and preference.
Comment: The integration of vehicles and Internet can create various products and commercial models. Many governments and enterprises are actively making arrangement in this area. The Ministry of Industry and Information Technology (MIIT) once indicated that it will launch the Plan on the Development and Innovation Actions on Internet of Vehicle (2015-2020) to fully facilitate the technology R＆D and the formulation of standards of the Internet of vehicles as well as to propel the development of the whole industry. As to listed companies, subsidiary under United Electronics Co., Ltd. (002642.SZ) is engaged in the Internet of vehicles. Shenzhen Deren Electronic Co., Ltd. (002055.SZ) recently announces that it will provide Shenzhen Didi New Energy Vehicles Rental Co., Ltd. with the Internet of vehicles service.
○Central bank unveils overall operation status of payment system, mobile payment embraces rapid development
------
The central bank on April 5 unveiled the overall operation status of payment system in the fourth quarter of 2015. Data shows that electronic payment business maintained rapid growth and mobile payment business obviously surges. Banking financial institutions totally processed 30.381 billion deals of electronic payment business, totaling 586.47 trillion yuan, in the fourth quarter. Mobile payment business contributed 5.633 billion deals and 23.46 trillion yuan, representing a year-on-year growth of 245 percent and 208 percent, respectively.
Comment: Institutions believe that the transaction done through mobile payment takes up only 4.4 percent of national total transactions through electronic payment, while the figure hits around 19 percent globally. It is expected that business transactions will increase several times over in next three years. As to listed companies, Shenzhen Xinguodu Technology Co., Ltd. (300130.SZ) provides technical service for electronic payment of bank cards. MIAXIS BIOMETRICS Co., Ltd., a subsidiary under Xinguodu Technology, focuses on fingerprint identification and safety certificate system, and sees high market occupancy in financial industry; Newcapec Electronics Co., Ltd. (300248.SZ) takes the lead in making arrangement in NFC-related mobile phone clients and card applications.
TOP
[Announcement Interpretation]
○Selen Science ＆ Technology to acquire assets related to aluminum plastic package film for lithium battery at RMB550 mln
------
Shenzhen Selen Science ＆ Technology Co., Ltd. plans to purchase assets related to production of aluminum plastic package film for lithium battery of T＆T Enertechno at 9.5 yen (equivalent to about 550 million yuan). T＆T is a famous Japanese joint-stock company engaged in manufacturing and selling various external package material of lithium battery. This acquisition enables the company to own the technology producing aluminum plastic package film for lithium battery and establish new production line in function material industrial base in Changzhou city to realize localization replacing imports.
○Enn Ecological to participate in Australian petrol and gas manufacturer with RMB4.9 bln
------
Enn Ecological Holdings Co., Ltd. (600803.SH) plans to pay 4.9 billion yuan in cash to purchase 100 percent equity of United Faith Ventures Limited, which holds 11.72 percent equity of an Australian company Santos Limited. The company also plans to raise 3.3 billion yuan by issuing 289 million shares at 11.4 yuan per share through private placement specific to Dynamic Moon Limited, Hongyi 2015 (Shanghai) Investment Center (Limited Partnership) and Xinyi Holdings Co., Ltd. The fundraising will be used for the above-mentioned acquisition. As disclosed, Santos is a leading petrol and oil gas manufacturer in Australia and its major revenue mainly comes from Australia and Asia-Pacific region.
○Seg partners with Tencent to build platform for business incubator service
------
Shenzhen Seg Co., Ltd. (000058.SZ) signed cooperation agreement with Shenzhen Seg Chuangyehui Co., Ltd. and Tencent Holdings Ltd. (00700.HK) to conduct strategic cooperation by taking advantages of their own platform and resources. The three companies will join hand in hand to build Tencent laboratory showcase and establish benchmark in business incubator service with software and hardware.
Comment: The three companies cooperate in building a comprehensive service platform for entrepreneurship with incubator and investment, exhibiting and sell platform for hardware and practical and innovative hardware lab platform. This move is an important measure of Seg to set up the complete Seg Maker industry ecosystem, which will facilitate the company's leading role in maker industry and its transformation and upgrading.
○Huawei Technology cooperates with Hunan Intelligence in AI robot
------
Huawei Technology Co., Ltd. (002502.SZ) signed strategic cooperation agreement with Hunan Intelligence Robot Innovation Research Institute. They will conduct cooperation in the R＆D and production of artificial intelligence (AI) robot (industrial robot and entertainment robot).
TOP
[Financial Reports Express]
○Keyvia Electric and other firms propose high share conversion and dividend
------
Actual controller of Tianjin Keyvia Electric Co., Ltd. (300407.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. TianGuang Fire-Fighting Co., Ltd. (002509.SZ) proposes a 12-for-10 conversion of capital surplus into shares combined with 0.5 yuan dividend for every 10 shares. Kunming Longjin Pharmaceutical Co., Ltd. (002750.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. Hunan Er-Kang Pharmaceutical Co., Ltd. (300267.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.
○Net profit of CSG Holding expected to surge in Q1
------
Net profit of CSG Holding Co., Ltd. (000012.SZ) is expected to surge by 137-162 percent in the first quarter as solar photovoltaic industry keeps recovering. Net profit of Guangdong Shaoneng Group Co., Ltd. (000601.SZ) is expected to surge by 313-339 percent in the first quarter mainly contributed by the increasing performance of hydropower business.
[Trading Trends]
○Infotmic bought through 3 institutional seats
------
The trading volume ranking list on April 5 shows that Infotmic Co., Ltd. (000670.SZ) was bought through three institutional seats with a total of 176 million yuan, accounting for 20.4 percent of its intraday turnover, and was sold by one institutional seat at 11.12 million yuan.
Comment: Institutions believe that as a leading designer company in high-performance processor SOC chip in China, the company embarks on the core component supply system of virtual reality (VR) hardware by developing the chips for miniStation together with Tencent, which will boost the VR industry to boom.
[Trading Alarms]
○Doyin Pump Industry to launch IPO on April 6
------
Zhejiang Doyin Pump Industry Co., Ltd (002793.SZ) is going to launch IPO at price of 11.97 yuan per share with an upper limit of 10,000 shares for each account. The P/B ratio is 15 times. Investors who succeed in subscribing the new shares should pay on April 8.
TOP
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