[Today's Guide]
○ Zhejing plans to strengthen charging pile construction, State Grid's biding to bring substantial orders
○ NdFeB industry to boom, 13th Five-Year Plan on chemical new material expected to issue
○Kingenta Ecological Engineering proposes to acquire gardening company, Longsheng to control Yabang Dyestuff by participating in its additional issuance
○ Several companies proposes high share conversion and dividend, others report growth in Q1
[SSN Focus]
○ Zhejing plans to strengthen charging pile construction, State Grid's biding to bring substantial orders
------
State Grid Zhejiang Electric Power Company recently released the 2015 white paper on serving the economic and social development in Zhejiang Province, promising to construct 331 fast-charging stations for electric vehicle in Zhejiang in 2016. According to Zhejiang Province's plan, by 2010, the accumulative production of new energy vehicles will reach over 500,000 and the accumulative total of applied vehicles will reach over 230,000. And the charging stations will reach over 800 and charging piles will exceed 210,000.
Comments: It is not the only case for Zhejiang Province to strengthen charging pile construction. Shanghai has also proposed that by 2020, the city will see over 210,000 charging piles in operation and services to basically meet the demands of 260,000 new energy vehicles for charging services. Recently, the State Grid launched the first round of charging pile bidding since this year, which is expected to bring substantial orders to relevant enterprises. Among listed companies, Hangzhou Zhongheng Electric Co., Ltd. (002364.SZ) forecasts a 50 percent to 80 percent growth for the first quarter mainly due to revenues from the confirmation of charging equipment orders from the State Grid. Zhongyeda Electric Co., Ltd. (002441.SZ) and Suzhou Industrial Park Heshun Electric Co., Ltd. (300141.SZ) are also involved into charging pile business.
TOP
○ Surging new energy vehicles boost demand, NdFeB industry to boom
------
The unexpected huge orders for Tesla new vehicles further boosted relevant industrial chains in the new energy vehicles industry. Miao Wei, Minister of the Ministry of Industry and Information Technology (MIIT) previously indicated that the output and sales of new energy vehicles reached over 300,000 last year and it is expect to surge over 100 percent this year. The latest moves of an investor's interaction platform also show that orders for neodymium iron boron (NdFeB), a key material for electric vehicles, are seeing stable increase.
Comments: Institutes estimate that each hybrid vehicle consumes about 3 kilograms of NdFeB more than traditional vehicles and 5 to 10 kilograms more than pure electric vehicles. The demand for NdFeB will reach 44,000 tons each year in 2020 and the global demand will reach about 100,000 tons. It enjoys a huge market potential. Beijing Zhong Ke San Huan High-Tech Co., Ltd. (000970.SZ) and Ningbo Yunsheng Co., Ltd. (600366.SH) respectively are the biggest and the second biggest NdFeB permanent magnet materials suppliers in China.
[SSN Selection]
○ Data of China's central bank shows that the country's foreign currency reserve in March increased 10.3 billion U.S. dollars from the previous month, representing the first time recovery in 5 months.
○ The scale of securities-oriented trust products established in March surged by 255 percent on a monthly basis. Some large-scale capitals also enter the stock market again through leverage.
○ SSN learns that the five-year plan on the hog production development is expected to release this month, which will set a goal for the proportion of standardized hog breeding.
○ The seminar on virtual reality, augmented reality and industrial development was held on April 6 under the organization of the informatization and software service industry office of the MIIT.
○ Alipay will display its "Smile to Pay", a new face recognition payment technology, in Hangzhou City on April 8. The technology has higher recognition accuracy than human eyes.
[Industry Information]
○ 13th Five-Year Plan on chemical new material expected to issue, self-sufficiency rate of high performance fiber to raise
------
SSN learns that the China Petroleum and Chemical Industry Federation (CPCIF) has completed the 13th Five-Year Plan on chemical new material which is expected to release within this month. To promote the industry development, the federation will set up an investment fund for the new material industry.
Comments: People from the CPCIF indicated that China still stands at a low level in terms of chemical new material and has to greatly rely on imports in high performance products. During the 13th Five-Year Plan period, China will make progress in high performance fiber, boosting the self-sufficiency rate of key chemical new materials to above 80 percent. Among listed companies, Yantai Tayho Advanced Materials Co., Ltd. (002254.SZ) ranks top in the world in terms of aramid fiber productivity. Its products are applied in automobile security, aerospace, military and other fields. The carbon composite materials of Hunan Boyun New Materials Co., Ltd. (002297.SZ) can be applied in the aerospace field. Kingfa Sci.＆ Tech.Co., Ltd. (600143.SH) owns technology in civil automobile carbon fiber production.
○ New sports firm joins in A shares, investment in sports industry remains hot
------
Shenzhen Hifuture Electric Co., Ltd. (002168.SZ) announces that its 11.1 equities were transferred to Zhongchi Jisu Sports Culture Development Co., Ltd. for 1.65 billion yuan, a 114 percent premium to the closing price before it suspended trading. After the completion of transfer, Zhongchi Jisu Sports Culture Development will become the company's new substantial shareholder. It is likely to adjust and supplement the company's main businesses. Data shows that China Equity Group, the only shareholder of Zhongchi Jisu Sports Culture Development, is among the earliest independent institutions engaged in venture investment and private equity investment. It also invested in famous enterprises, such as Baidu (NASDAQ: BIDU), Sohu (NASDAQ: SOHU) and Huayi Brothers Media Corporation (300027.SZ).
Comment: China Equity Co., Ltd. establishes a sport company and invests heavily to control Hifuture Electric, showing its confidence towards the future of sport industry. Recently, capitals are swarming into sport sector: Leshi Internet Information ＆ Technology Corp.,Beijing (300104.SZ) will continue to invest 6 billion yuan to buy the copyright of top sports events; Tencent (00700.HK) will vigorously build self-made sport program; Hong Kong listed China Digital Culture (Group) Limited (08175.HK) contracted with Jay Chow to establish an e-sport team. A number of A-share market listed companies also actively expand sport businesses: Lander Sports Development Co., Ltd. (000558.SZ) has extensive deployment in sports lottery tickets, sport events and E-sport areas; Wuxi Double Elephant Micro Fibre Material Co., Ltd. (002395.SZ) and Chuying Agro-Pastoral Group Co., ltd. (002477.SZ) have set up sport business and e-sport industry foundation respectively.
TOP
[Announcement Interpretation]
○ Kingenta Ecological Engineering proposes to acquire European gardening company
------
Kingenta Ecological Engineering Group Co., Ltd. (002470.SZ) proposes to buy shares of 24 home gardening business companies under Compo AcquiCo S.a.r.l. with 116 million Euros. The adjusted EBITA of subject asset in 2015 is 17.4 million Euros. Kingenta Ecological Engineering indicated that through this acquisition, it can swiftly obtain the largest home gardening product and plant protection product capacity in Europe, worldwide sales network and brand with international influence, which will enhance the company's position in the industry.
○ Longsheng to control Yabang Dyestuff by participating in its additional issuance
------
Zhejiang Longsheng Group Co., Ltd. (600352.SH) and Yabang Group entered into memorandum. The latter proposes to promote Jiangsu Yabang Dyestuff Co., Ltd. (603188.SH), a listed company held by it, to issue additional shares, and Longsheng proposes to participate in the subscription with an amount of 3.5 to 4.0billion yuan. Upon completion of the additional issuance, Longsheng will become the controlling shareholder of Yabang Dyestuff. Subsequently, both sides will further negotiate in respect of business cooperation and complement of each other's advantages.
Comment: previously, Longsheng and Zhejiang Runtu Co., ltd. (002440.SZ), two leading companies in the dye industry, have reached strategic cooperation, and formed oligopoly. This time, by participating the private placement, Longsheng is able to control Yabang Dyestuff, the largest anthraquinone disperse dye and crude dye producer in the world, and solidify its position in the industry.
○ Jiugui Liquor turns deficit into profits, applying for removal of ST
------
Jiugui Liquor Co., Ltd. (000799.SZ) realized net profits of 88,570,000 yuan last year, and turned deficit into profits. Its basic earnings per share is 0.27 yuan. The company on April 7 submitted application on removing stock delisting risk warning to Shenzhen Stock Exchange.
○ Aier Eye Hospital invests RMB30 mln in Qihoo 360
------
Shannan Zhilian Medical Information Technology Co., Ltd., wholly owned subsidiary of Aier Eye Hospital Group Co., Ltd. (300015.SZ), indirectly invested in Qihoo 360's shareholding by investing in Tianjin Xinxinsheng Investment Limited Partnership. The subscribed capital contribution is 30.32 million U.S. dollar equivalent RMB. Qihoo 360 plans to return to A-share market, which is so far the largest scale returning project among Chinese Internet enterprises.
○ Lens Technology advances private placement
------
Lens Technology Co., Ltd. (300433.SZ) aims to raise over 6 billion yuan through private placement to invest in sapphire production, intelligent terminal application projects, 3D bent glass production project, etc. Currently, subscribers of the private placement have completed the quotation and paid the cash deposit. The company will continue to push forward following works. During the trading suspension, Apple and Samsung conceptual sectors surged markedly.
TOP
[Financial Reports Express]
○ Several companies proposes high share conversion and dividend
------
Zhejiang Yinlun Machinery Co., Ltd. (002126.SZ) reports 32 percent growth in its annual report, and proposes 10-for-10 conversion of capital surplus into shares combined with 0.6 yuan dividend for every 10 shares. Zhejiang Jiuzhou Pharmaceutical Co., ltd. (603456.SH) reports 50 percent growth in its annual report, and proposes 10-for-10 conversion of capital surplus into shares combined with 3 yuan dividend for every 10 shares. China TransInfo Technology Co., Ltd. (002373.SZ) reports 18 percent growth in its annual report, and proposes 10-for-10 conversion of capital surplus into shares combined with 1 yuan dividend for every 10 shares.
Hangzhou Robam Appliances Co., Ltd. (002508.SZ) reports 45 percent growth in its annual report, and proposes 5-for-10 conversion of capital surplus into shares combined with 6 yuan dividend. AVIC Electromechanical Systems Co., Ltd. (002013.SZ) reports 28 percent growth in its annual report, and proposes 5-for-10 conversion of capital surplus into shares combined with 0.5yuan dividend for every 10 shares. Guangzhou Guangri Stock Co., Ltd. (600894.SH) reports 218 percent growth in its annual report, and proposes 7.5 dividend for every 10 shares.
○ Various companies report growth in Q1
------
Henan Pinggao Electric Co., Ltd. (600312.SH) reports 550 percent growth in Q1, and expects 50 to 100 percent growth for half year, primarily due to the increase of sales volume of high value-added products.
Gosuncn Technology Group Co., Ltd. (300098.SZ) expects 142 to 163 percent growth in Q1, primarily due to the growth of big data business. Jiangsu Protruly Vision Technology Group Co., Ltd. (600074.SH) expects 80 to 130 percent growth in Q1, primarily due to the expansion of automotive video business. Sinopec Shanghai Petrochemical Company Limited (600688.SH) expect 2000 to 2200 percent growth in Q1, primarily due to the drop of price of its products is less than that of raw material purchase costs. Guangdong Biolight Meditech Co., Ltd. (300246.SZ) expects 100 to 130 percent growth in Q1, primarily due to substantial increase of overseas sales. Shenzhen V＆T Technologies Co., ltd. (300484.SZ) expect 148 to 169 percent growth in Q1, primarily due to significant growth of sales of machine controller used for electric vehicles.
[Trading Alarm]
○ Weihong Electronic Technology to unveil IPO on April 8
------
The offering price of Shanghai Weihong Electronic Technology Co., Ltd. (300508.SZ) is 20.08 yuan per share, representing a PE ratio of 23 times. The upper limit of subscription is 5,550 shares. The payment date of successful application is April 12.
TOP
○ Zhejing plans to strengthen charging pile construction, State Grid's biding to bring substantial orders
○ NdFeB industry to boom, 13th Five-Year Plan on chemical new material expected to issue
○Kingenta Ecological Engineering proposes to acquire gardening company, Longsheng to control Yabang Dyestuff by participating in its additional issuance
○ Several companies proposes high share conversion and dividend, others report growth in Q1
[SSN Focus]
○ Zhejing plans to strengthen charging pile construction, State Grid's biding to bring substantial orders
------
State Grid Zhejiang Electric Power Company recently released the 2015 white paper on serving the economic and social development in Zhejiang Province, promising to construct 331 fast-charging stations for electric vehicle in Zhejiang in 2016. According to Zhejiang Province's plan, by 2010, the accumulative production of new energy vehicles will reach over 500,000 and the accumulative total of applied vehicles will reach over 230,000. And the charging stations will reach over 800 and charging piles will exceed 210,000.
Comments: It is not the only case for Zhejiang Province to strengthen charging pile construction. Shanghai has also proposed that by 2020, the city will see over 210,000 charging piles in operation and services to basically meet the demands of 260,000 new energy vehicles for charging services. Recently, the State Grid launched the first round of charging pile bidding since this year, which is expected to bring substantial orders to relevant enterprises. Among listed companies, Hangzhou Zhongheng Electric Co., Ltd. (002364.SZ) forecasts a 50 percent to 80 percent growth for the first quarter mainly due to revenues from the confirmation of charging equipment orders from the State Grid. Zhongyeda Electric Co., Ltd. (002441.SZ) and Suzhou Industrial Park Heshun Electric Co., Ltd. (300141.SZ) are also involved into charging pile business.
TOP
○ Surging new energy vehicles boost demand, NdFeB industry to boom
------
The unexpected huge orders for Tesla new vehicles further boosted relevant industrial chains in the new energy vehicles industry. Miao Wei, Minister of the Ministry of Industry and Information Technology (MIIT) previously indicated that the output and sales of new energy vehicles reached over 300,000 last year and it is expect to surge over 100 percent this year. The latest moves of an investor's interaction platform also show that orders for neodymium iron boron (NdFeB), a key material for electric vehicles, are seeing stable increase.
Comments: Institutes estimate that each hybrid vehicle consumes about 3 kilograms of NdFeB more than traditional vehicles and 5 to 10 kilograms more than pure electric vehicles. The demand for NdFeB will reach 44,000 tons each year in 2020 and the global demand will reach about 100,000 tons. It enjoys a huge market potential. Beijing Zhong Ke San Huan High-Tech Co., Ltd. (000970.SZ) and Ningbo Yunsheng Co., Ltd. (600366.SH) respectively are the biggest and the second biggest NdFeB permanent magnet materials suppliers in China.
[SSN Selection]
○ Data of China's central bank shows that the country's foreign currency reserve in March increased 10.3 billion U.S. dollars from the previous month, representing the first time recovery in 5 months.
○ The scale of securities-oriented trust products established in March surged by 255 percent on a monthly basis. Some large-scale capitals also enter the stock market again through leverage.
○ SSN learns that the five-year plan on the hog production development is expected to release this month, which will set a goal for the proportion of standardized hog breeding.
○ The seminar on virtual reality, augmented reality and industrial development was held on April 6 under the organization of the informatization and software service industry office of the MIIT.
○ Alipay will display its "Smile to Pay", a new face recognition payment technology, in Hangzhou City on April 8. The technology has higher recognition accuracy than human eyes.
[Industry Information]
○ 13th Five-Year Plan on chemical new material expected to issue, self-sufficiency rate of high performance fiber to raise
------
SSN learns that the China Petroleum and Chemical Industry Federation (CPCIF) has completed the 13th Five-Year Plan on chemical new material which is expected to release within this month. To promote the industry development, the federation will set up an investment fund for the new material industry.
Comments: People from the CPCIF indicated that China still stands at a low level in terms of chemical new material and has to greatly rely on imports in high performance products. During the 13th Five-Year Plan period, China will make progress in high performance fiber, boosting the self-sufficiency rate of key chemical new materials to above 80 percent. Among listed companies, Yantai Tayho Advanced Materials Co., Ltd. (002254.SZ) ranks top in the world in terms of aramid fiber productivity. Its products are applied in automobile security, aerospace, military and other fields. The carbon composite materials of Hunan Boyun New Materials Co., Ltd. (002297.SZ) can be applied in the aerospace field. Kingfa Sci.＆ Tech.Co., Ltd. (600143.SH) owns technology in civil automobile carbon fiber production.
○ New sports firm joins in A shares, investment in sports industry remains hot
------
Shenzhen Hifuture Electric Co., Ltd. (002168.SZ) announces that its 11.1 equities were transferred to Zhongchi Jisu Sports Culture Development Co., Ltd. for 1.65 billion yuan, a 114 percent premium to the closing price before it suspended trading. After the completion of transfer, Zhongchi Jisu Sports Culture Development will become the company's new substantial shareholder. It is likely to adjust and supplement the company's main businesses. Data shows that China Equity Group, the only shareholder of Zhongchi Jisu Sports Culture Development, is among the earliest independent institutions engaged in venture investment and private equity investment. It also invested in famous enterprises, such as Baidu (NASDAQ: BIDU), Sohu (NASDAQ: SOHU) and Huayi Brothers Media Corporation (300027.SZ).
Comment: China Equity Co., Ltd. establishes a sport company and invests heavily to control Hifuture Electric, showing its confidence towards the future of sport industry. Recently, capitals are swarming into sport sector: Leshi Internet Information ＆ Technology Corp.,Beijing (300104.SZ) will continue to invest 6 billion yuan to buy the copyright of top sports events; Tencent (00700.HK) will vigorously build self-made sport program; Hong Kong listed China Digital Culture (Group) Limited (08175.HK) contracted with Jay Chow to establish an e-sport team. A number of A-share market listed companies also actively expand sport businesses: Lander Sports Development Co., Ltd. (000558.SZ) has extensive deployment in sports lottery tickets, sport events and E-sport areas; Wuxi Double Elephant Micro Fibre Material Co., Ltd. (002395.SZ) and Chuying Agro-Pastoral Group Co., ltd. (002477.SZ) have set up sport business and e-sport industry foundation respectively.
TOP
[Announcement Interpretation]
○ Kingenta Ecological Engineering proposes to acquire European gardening company
------
Kingenta Ecological Engineering Group Co., Ltd. (002470.SZ) proposes to buy shares of 24 home gardening business companies under Compo AcquiCo S.a.r.l. with 116 million Euros. The adjusted EBITA of subject asset in 2015 is 17.4 million Euros. Kingenta Ecological Engineering indicated that through this acquisition, it can swiftly obtain the largest home gardening product and plant protection product capacity in Europe, worldwide sales network and brand with international influence, which will enhance the company's position in the industry.
○ Longsheng to control Yabang Dyestuff by participating in its additional issuance
------
Zhejiang Longsheng Group Co., Ltd. (600352.SH) and Yabang Group entered into memorandum. The latter proposes to promote Jiangsu Yabang Dyestuff Co., Ltd. (603188.SH), a listed company held by it, to issue additional shares, and Longsheng proposes to participate in the subscription with an amount of 3.5 to 4.0billion yuan. Upon completion of the additional issuance, Longsheng will become the controlling shareholder of Yabang Dyestuff. Subsequently, both sides will further negotiate in respect of business cooperation and complement of each other's advantages.
Comment: previously, Longsheng and Zhejiang Runtu Co., ltd. (002440.SZ), two leading companies in the dye industry, have reached strategic cooperation, and formed oligopoly. This time, by participating the private placement, Longsheng is able to control Yabang Dyestuff, the largest anthraquinone disperse dye and crude dye producer in the world, and solidify its position in the industry.
○ Jiugui Liquor turns deficit into profits, applying for removal of ST
------
Jiugui Liquor Co., Ltd. (000799.SZ) realized net profits of 88,570,000 yuan last year, and turned deficit into profits. Its basic earnings per share is 0.27 yuan. The company on April 7 submitted application on removing stock delisting risk warning to Shenzhen Stock Exchange.
○ Aier Eye Hospital invests RMB30 mln in Qihoo 360
------
Shannan Zhilian Medical Information Technology Co., Ltd., wholly owned subsidiary of Aier Eye Hospital Group Co., Ltd. (300015.SZ), indirectly invested in Qihoo 360's shareholding by investing in Tianjin Xinxinsheng Investment Limited Partnership. The subscribed capital contribution is 30.32 million U.S. dollar equivalent RMB. Qihoo 360 plans to return to A-share market, which is so far the largest scale returning project among Chinese Internet enterprises.
○ Lens Technology advances private placement
------
Lens Technology Co., Ltd. (300433.SZ) aims to raise over 6 billion yuan through private placement to invest in sapphire production, intelligent terminal application projects, 3D bent glass production project, etc. Currently, subscribers of the private placement have completed the quotation and paid the cash deposit. The company will continue to push forward following works. During the trading suspension, Apple and Samsung conceptual sectors surged markedly.
TOP
[Financial Reports Express]
○ Several companies proposes high share conversion and dividend
------
Zhejiang Yinlun Machinery Co., Ltd. (002126.SZ) reports 32 percent growth in its annual report, and proposes 10-for-10 conversion of capital surplus into shares combined with 0.6 yuan dividend for every 10 shares. Zhejiang Jiuzhou Pharmaceutical Co., ltd. (603456.SH) reports 50 percent growth in its annual report, and proposes 10-for-10 conversion of capital surplus into shares combined with 3 yuan dividend for every 10 shares. China TransInfo Technology Co., Ltd. (002373.SZ) reports 18 percent growth in its annual report, and proposes 10-for-10 conversion of capital surplus into shares combined with 1 yuan dividend for every 10 shares.
Hangzhou Robam Appliances Co., Ltd. (002508.SZ) reports 45 percent growth in its annual report, and proposes 5-for-10 conversion of capital surplus into shares combined with 6 yuan dividend. AVIC Electromechanical Systems Co., Ltd. (002013.SZ) reports 28 percent growth in its annual report, and proposes 5-for-10 conversion of capital surplus into shares combined with 0.5yuan dividend for every 10 shares. Guangzhou Guangri Stock Co., Ltd. (600894.SH) reports 218 percent growth in its annual report, and proposes 7.5 dividend for every 10 shares.
○ Various companies report growth in Q1
------
Henan Pinggao Electric Co., Ltd. (600312.SH) reports 550 percent growth in Q1, and expects 50 to 100 percent growth for half year, primarily due to the increase of sales volume of high value-added products.
Gosuncn Technology Group Co., Ltd. (300098.SZ) expects 142 to 163 percent growth in Q1, primarily due to the growth of big data business. Jiangsu Protruly Vision Technology Group Co., Ltd. (600074.SH) expects 80 to 130 percent growth in Q1, primarily due to the expansion of automotive video business. Sinopec Shanghai Petrochemical Company Limited (600688.SH) expect 2000 to 2200 percent growth in Q1, primarily due to the drop of price of its products is less than that of raw material purchase costs. Guangdong Biolight Meditech Co., Ltd. (300246.SZ) expects 100 to 130 percent growth in Q1, primarily due to substantial increase of overseas sales. Shenzhen V＆T Technologies Co., ltd. (300484.SZ) expect 148 to 169 percent growth in Q1, primarily due to significant growth of sales of machine controller used for electric vehicles.
[Trading Alarm]
○ Weihong Electronic Technology to unveil IPO on April 8
------
The offering price of Shanghai Weihong Electronic Technology Co., Ltd. (300508.SZ) is 20.08 yuan per share, representing a PE ratio of 23 times. The upper limit of subscription is 5,550 shares. The payment date of successful application is April 12.
TOP
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