[Today's Guide]
> Chinese Premier Li Keqiang visited Tsinghua University and Peking University, colleges and universities likely to speed up reform pace
> Kyushu in Japan suffered various strong earthquakes, semiconductor industry attracts attention
> BBMG Corporation participating in Jidong Development Group, Yatai to carry out private placement
> Net profit of Do-Fluoride Chemicals expected to surge in semiyearly report, Kangsheng proposes high share conversion and dividend
[SSN Focus]
Chinese Premier Li Keqiang visited Tsinghua University and Peking University, colleges and universities likely to speed up reform pace
------
Chinese Premier Li Keqiang visited Tsinghua University and Peking University around April 15, and hosted a reform and innovation discussion for high education. News website of Peking University shows that, its president Lin Jianhua made a speech named as "Guiding Based on Problems, Exploring Educational Rules" in the discussion, introduced its educational reform concept facing the future, and proposed to follow the educational rule, fully deepen the comprehensive reform and break through the development bottleneck. In additional, people in charge of Tsinghua University and others or their teacher representatives also made speeches in the discussion.
Comment: Based on overall scheme of the State Council, by 2020, several universities and a series of disciplines will step into the first-class list worldwide, with several disciplines ranking highly in the world. Institutions believed that reform on colleges and universities actually belongs to the reform on state-owned enterprises (SOEs); currently, the assets of colleges and universities based enterprises record 450 billion yuan, with a potential to break through the scale of 1 trillion yuan, hence, the securitization space is huge. In terms of listed companies, China Hi-Tech Group Co., Ltd. (600730.SH) under the Peking University is intensifying its strength to create a professional education platform, and its educational assets are expected to be further integrated in the future; Xiamen Insight Investment Co., Ltd. (000526.SZ) proposes to raise 5.5 billion yuan to acquire the 100 equities of Xueda Education Co., Ltd. to invest more in online education field.
[SSN Selection]
○Social financing incrument has set a historic high in the first quarter, and the growth rate of money supply M1 increased year on year to 22.1 percent, which is a new high in the latest five years.
○Management Method on Financing Behavior of Private Investment Fund was launched on April 15, clearly stating that financing procedure should strictly follow the principle of three layers.
○The State Council recently printed and issued the scheme to determine the construction process of Shanghai Technology Innovation Center, and deploy various key tasks, including construction of Zhangjiang National Comprehensive Scientific Center.
○Seven ministries including Ministry of Human Resources and Social Security on April 15 jointly issued the second ministry-level supporting specification for the supply side reform, focusing on distributing and allocating the staff through various channels.
○Department of Land and Resources in Wenzhou city announces to start the study on validity extension scheme for the use right of residential land, and states that "hundreds of thousands yuan for validity extension" reported by the media is misread.
○The media reported that crude oil production is required not to exceed that in January according to a Doha agreement draft to freeze oil production, and next meeting will be held in October.
TOP
[Industrial Information]
○Kyushu in Japan suffered various strong earthquakes, semiconductor industry attracts attention
------
After the MS 6.5 earthquake in the evening of April 14, Kumamoto, Kyushu in Japan suffered a MS 7.3 earthquake again on April 16. Based on comprehensive reports by the media, integrated circuit products delivered from Kyushu account for 30 percent of the total amount in Japan; an important CMOS manufactory under Sony is located in Kyushu; enterprises including NEC and TOSHABA also have semiconductor factories there.
Comment: The eastern part of Japan occurred a strong earthquake in March 2011, once attracting the market's high attention to semiconductor industry. As the significant semiconductor production base in Japan and also in the world, Kyushu has been hit by the earthquakes, which is likely to cause a phased shortage in capacity to incent the demands for supplementing the storage. Under the great policy support, China's capability to undertake the shifting of international semiconductor also reinforces. In terms of listed companies, China Wafer Level CSP Co., Ltd. (603005.SH) is the second largest enterprise in the world to provide WLCSP service for CMOS; JiLin Sino-Microelectronics Co., Ltd. (600360.SH) is mainly engaged in power semiconductor components; Nantong Fujitsu Microelectronics Co., Ltd. (002156.SZ) is engaged in packing test for integrated circuit.
○Salt industry included in key industries to be reformed, manufacturers' profitable space likely to increase
------
The website of National Development and Reform Commission reported on April 16 that the national working meeting on economic mechanism reform for this year has been held recently, requiring to grasp the key development situation and focus on reform's implementation. Referring to deepening the enterprise reform, the meeting proposed to make great effort to push the reform in key industries, such as power, oil gas, salt and etc. Information showed that key industries involved in the reform mentioned in such meeting of 2015 only covered power and oil gas, not taking about the reform in salt industry.
Comment: The salt industry's exclusive operation system has been lasted for nearly 20 years. Along with economic and social development, its problems exposed to the public become increasingly serious: production and sales chains are separated; product price of the manufacturers are pressed; enterprises are reluctant to innovate the products or improve the quality; consumers have few choices. Going to benefit from the promoted salt industrial reform, some strongly-competitive salt enterprises in the upstream chain are likely to step into the final consumption filed to improve their market share and profitable space. Some salt companies with state-owned asset and advanced resources will attract the institutional attention, such as Jiangsu Jingshen Salt ＆ Chemical Industry Co., Ltd. (603299.SH) and Yunnan Salt ＆ Salt Chemical Industry Co., Ltd. (002053.SZ).
◆It is reported by China Business Journal that reform scheme for the natural gas price is likely to release in the second half year. Besides proposing to unify the gas princes for non-residential and residential use, it also proposes various measures, such as opening the gas price for fertilizer enterprises and taking advantage of price leverage to ease the supply pressure at gas-using peak.
TOP
[Announcement Interpretation]
○Two cement giants sees integration with BBMG Corporation participating in Jidong Development Group
------
BBMG Corporation (601992.SH) plans to prepay cash 3 billion yuan to become controlling shareholder of Jidong Development Group (with shareholding no less than 51 percent). Tangshan Jidong Cement Co., Ltd. (000401.SZ) under Jidong Development Group intends to acquire relevant cement and concrete assets through private placement so as to promote the integration of cement industry in the region. Tangshan Jidong Equipment And Engineering Co., Ltd. (000856.SZ) under the group also announces that BBMG Corporation will invest in it, which will make State-owned Assets Supervision and Administration Commission of Government of Beijing Municipality as its new actual controller.
North China, where BBMG Corporation and Jidong Development Group are located, sees the fiercest competition of cement industry. The integration of these two powerful companies will effectively improve the cutthroat competition with low price for a long time in this region. According to statistics from China Cement Association, the production capacities of BBMG Corporation and Jidong Development Group ranked the fourth and the ninth in 2015 respectively and cement clinker capacity of them after integration will exceed 110 million tons, ranking up to the third in the country.
○Yatai to raise RMB3.4 bln to expand in pharmacy and building material industries
------
Jilin Yatai (Group) Co., Ltd. (600881.SH) proposes to raise 3,435 million yuan by issuing 731 million shares at no less than 4.70 yuan per share through private placement to build pharmaceutical industrial park and industrial park for building industrialized products. The company's associate party Jilin Gold Tower Investment Co., Ltd. will subscribe 5 percent of the total shares at most and its major shareholders are the company's senior management, members of enterprise which it is affiliated to and core backbones.
○Machine Tool to raise RMB bln to invest in intelligent machine tool and other projects
------
Shenyang Machine Tool Co., Ltd. (000410.SZ) intends to raise 3 billion yuan by issuing shares at the floor price of 15.96 yuan per share through private placement from no more than ten investors including its controlling shareholder (which will subscribe the shares worth no more than 300 million yuan). The fundraising will be invested in such projects as industrialization upgrading of intelligent machine tool, marketing network upgrading, technology innovation platform and loan repayment. The company's latest stock price stood at 18.79 yuan per share before the trading suspension.
○Chenming Paper Holdings to raise RMB8 bln to invest in papermaking and leasing sectors
------
Shandong Chenming Paper Holdings Limited is going to raise 8 billion yuan by raising 1,062 million shares through private placement to invest in a project with annual production of 400,000 tons of bleached chemical wood pulp, make additional investment in Shandong Chenming Finance Leasing Co., Ltd. and supplement working capitals. The company's controlling shareholder will subscribe the shares worth no less than 2 billion yuan. The stock price in this private placement will be no less than 7.53 yuan per share and it was 8.8 yuan per share before the trading suspension.
○PetroChina Jinhong Energy Investment cooperates with CSNE
------
PetroChina Jinhong Energy Investment Co., Ltd. (000669.SZ) terminates major recombination matters and will cooperate with Liang Jinda and 80 gas stations controlled by Liang by stages to establish liquefied natural gas or compressed natural gas stations based on the existing ones.
Meanwhile, the company will sign strategic cooperation agreement with China Shipbuilding (Shanghai) New Energy Company (CSNE) to conduct overall strategic cooperation in several energy utilization fields including new energy and energy innovation, energy Internet, intelligent energy and intelligent environmental protection.
TOP
[Financial Reports Express]
○Net profit of Do-Fluoride Chemicals expected to surge in semiyearly report
------
New profit of Do-Fluoride Chemicals Co., Ltd. (002407.SZ) grows by 1,245 percent in the first quarter and is expected to rise by 2,500-2,550 percent in the first half of 2016 as lithium hexafluorophosphate enters booming cycle. Net profit of Nanji E-commerce Co., Ltd. (002127.SZ) is predicted to increase by 260-307 percent in the first quarter of this year mainly due to hike in the authorized dealers and improvement in e-commerce ecological service quality. The company proposes a 10-for-10 conversion of capital surplus into shares
New profit of Shenzhen H＆T Intelligent Control Co., Ltd. (002402.SZ) soar by 113 percent in the first quarter and is expected to jump by 50-80 percent in the first half of 2016 resulting from stable development of principal business which has improved gross profit rate.
○Kangsheng proposes high share conversion and dividend
------
Zhe Jiang Kangsheng Co., Ltd. (002418.SZ) turns losses into profits according its annual report and its board of directors approves the proposal with a 20-for-10 conversion of capital surplus into shares combined with 1 yuan dividend for every 10 shares in the annual report. Its net profit is expected to rise by 67-92 percent according to its first quarterly report. Net profit of (300477.SZ) surges by 16 percent according to its annual report for 2015 and its board of directors approves the proposal with a 15-for-10 conversion of capital surplus into shares combined with 4 yuan dividend for every 10 shares in its annual report.
[Trading Trends]
○Jiaao Enprotech Stock to launch IPO on April 18
------
Zhejiang Jiaao Enprotech Stock Co., Ltd. (732822) will launch IPO at 11.76 yuan per share with an upper limit of 18,000 shares per account. The P/E ratio is 23 times. Investors who succeed in subscribing the stocks should pay on April 20.
[Weekly Review]
○Why no significant surge in stock market
------
In spite of loose risk control of securities brokerages, improved economic data and strong recommendation by famous analysts, the A shares still experienced moderate fluctuation last week.
Why does the breakthrough with surging trading volume not take place for so long? SSN thinks that the breakthrough in stock indexes usually needs to be led by the big-cap sector, but there is no leading sector at present. The market believes that banking sector has become a tool, resource stocks depend on overnight futures, there lacks leader in the real estate industry after China Vanke Co., Ltd. (000002.SZ) suspended trading and securities traders frequently entangle investors. In addition, with strengthening efforts in supervision, cases raising stocks prices violently in a succession are decreasing and leading stocks effect are weakening. In view of investors' psychology, investors have become extremely frightened after three rounds of significant plummet. As a result, scrolling operation has become a mainstream and blind investors holding stocks are dropping. It needs time and money-making effect to ease the psychic trauma of investors, but most of the current hot topics feature poor continuity, making it difficult for investors to make profits.
However, the market is still abundant in capitals at present. After the tier-1 cities carry out policies with housing restriction, the stock market's allocation value is improving and part of the capitals are desired to take long positions. With the promotion of reform and staged economic recovery, new substantial topics are expected to come up to refuel investors' passion.
TOP
> Chinese Premier Li Keqiang visited Tsinghua University and Peking University, colleges and universities likely to speed up reform pace
> Kyushu in Japan suffered various strong earthquakes, semiconductor industry attracts attention
> BBMG Corporation participating in Jidong Development Group, Yatai to carry out private placement
> Net profit of Do-Fluoride Chemicals expected to surge in semiyearly report, Kangsheng proposes high share conversion and dividend
[SSN Focus]
Chinese Premier Li Keqiang visited Tsinghua University and Peking University, colleges and universities likely to speed up reform pace
------
Chinese Premier Li Keqiang visited Tsinghua University and Peking University around April 15, and hosted a reform and innovation discussion for high education. News website of Peking University shows that, its president Lin Jianhua made a speech named as "Guiding Based on Problems, Exploring Educational Rules" in the discussion, introduced its educational reform concept facing the future, and proposed to follow the educational rule, fully deepen the comprehensive reform and break through the development bottleneck. In additional, people in charge of Tsinghua University and others or their teacher representatives also made speeches in the discussion.
Comment: Based on overall scheme of the State Council, by 2020, several universities and a series of disciplines will step into the first-class list worldwide, with several disciplines ranking highly in the world. Institutions believed that reform on colleges and universities actually belongs to the reform on state-owned enterprises (SOEs); currently, the assets of colleges and universities based enterprises record 450 billion yuan, with a potential to break through the scale of 1 trillion yuan, hence, the securitization space is huge. In terms of listed companies, China Hi-Tech Group Co., Ltd. (600730.SH) under the Peking University is intensifying its strength to create a professional education platform, and its educational assets are expected to be further integrated in the future; Xiamen Insight Investment Co., Ltd. (000526.SZ) proposes to raise 5.5 billion yuan to acquire the 100 equities of Xueda Education Co., Ltd. to invest more in online education field.
[SSN Selection]
○Social financing incrument has set a historic high in the first quarter, and the growth rate of money supply M1 increased year on year to 22.1 percent, which is a new high in the latest five years.
○Management Method on Financing Behavior of Private Investment Fund was launched on April 15, clearly stating that financing procedure should strictly follow the principle of three layers.
○The State Council recently printed and issued the scheme to determine the construction process of Shanghai Technology Innovation Center, and deploy various key tasks, including construction of Zhangjiang National Comprehensive Scientific Center.
○Seven ministries including Ministry of Human Resources and Social Security on April 15 jointly issued the second ministry-level supporting specification for the supply side reform, focusing on distributing and allocating the staff through various channels.
○Department of Land and Resources in Wenzhou city announces to start the study on validity extension scheme for the use right of residential land, and states that "hundreds of thousands yuan for validity extension" reported by the media is misread.
○The media reported that crude oil production is required not to exceed that in January according to a Doha agreement draft to freeze oil production, and next meeting will be held in October.
TOP
[Industrial Information]
○Kyushu in Japan suffered various strong earthquakes, semiconductor industry attracts attention
------
After the MS 6.5 earthquake in the evening of April 14, Kumamoto, Kyushu in Japan suffered a MS 7.3 earthquake again on April 16. Based on comprehensive reports by the media, integrated circuit products delivered from Kyushu account for 30 percent of the total amount in Japan; an important CMOS manufactory under Sony is located in Kyushu; enterprises including NEC and TOSHABA also have semiconductor factories there.
Comment: The eastern part of Japan occurred a strong earthquake in March 2011, once attracting the market's high attention to semiconductor industry. As the significant semiconductor production base in Japan and also in the world, Kyushu has been hit by the earthquakes, which is likely to cause a phased shortage in capacity to incent the demands for supplementing the storage. Under the great policy support, China's capability to undertake the shifting of international semiconductor also reinforces. In terms of listed companies, China Wafer Level CSP Co., Ltd. (603005.SH) is the second largest enterprise in the world to provide WLCSP service for CMOS; JiLin Sino-Microelectronics Co., Ltd. (600360.SH) is mainly engaged in power semiconductor components; Nantong Fujitsu Microelectronics Co., Ltd. (002156.SZ) is engaged in packing test for integrated circuit.
○Salt industry included in key industries to be reformed, manufacturers' profitable space likely to increase
------
The website of National Development and Reform Commission reported on April 16 that the national working meeting on economic mechanism reform for this year has been held recently, requiring to grasp the key development situation and focus on reform's implementation. Referring to deepening the enterprise reform, the meeting proposed to make great effort to push the reform in key industries, such as power, oil gas, salt and etc. Information showed that key industries involved in the reform mentioned in such meeting of 2015 only covered power and oil gas, not taking about the reform in salt industry.
Comment: The salt industry's exclusive operation system has been lasted for nearly 20 years. Along with economic and social development, its problems exposed to the public become increasingly serious: production and sales chains are separated; product price of the manufacturers are pressed; enterprises are reluctant to innovate the products or improve the quality; consumers have few choices. Going to benefit from the promoted salt industrial reform, some strongly-competitive salt enterprises in the upstream chain are likely to step into the final consumption filed to improve their market share and profitable space. Some salt companies with state-owned asset and advanced resources will attract the institutional attention, such as Jiangsu Jingshen Salt ＆ Chemical Industry Co., Ltd. (603299.SH) and Yunnan Salt ＆ Salt Chemical Industry Co., Ltd. (002053.SZ).
◆It is reported by China Business Journal that reform scheme for the natural gas price is likely to release in the second half year. Besides proposing to unify the gas princes for non-residential and residential use, it also proposes various measures, such as opening the gas price for fertilizer enterprises and taking advantage of price leverage to ease the supply pressure at gas-using peak.
TOP
[Announcement Interpretation]
○Two cement giants sees integration with BBMG Corporation participating in Jidong Development Group
------
BBMG Corporation (601992.SH) plans to prepay cash 3 billion yuan to become controlling shareholder of Jidong Development Group (with shareholding no less than 51 percent). Tangshan Jidong Cement Co., Ltd. (000401.SZ) under Jidong Development Group intends to acquire relevant cement and concrete assets through private placement so as to promote the integration of cement industry in the region. Tangshan Jidong Equipment And Engineering Co., Ltd. (000856.SZ) under the group also announces that BBMG Corporation will invest in it, which will make State-owned Assets Supervision and Administration Commission of Government of Beijing Municipality as its new actual controller.
North China, where BBMG Corporation and Jidong Development Group are located, sees the fiercest competition of cement industry. The integration of these two powerful companies will effectively improve the cutthroat competition with low price for a long time in this region. According to statistics from China Cement Association, the production capacities of BBMG Corporation and Jidong Development Group ranked the fourth and the ninth in 2015 respectively and cement clinker capacity of them after integration will exceed 110 million tons, ranking up to the third in the country.
○Yatai to raise RMB3.4 bln to expand in pharmacy and building material industries
------
Jilin Yatai (Group) Co., Ltd. (600881.SH) proposes to raise 3,435 million yuan by issuing 731 million shares at no less than 4.70 yuan per share through private placement to build pharmaceutical industrial park and industrial park for building industrialized products. The company's associate party Jilin Gold Tower Investment Co., Ltd. will subscribe 5 percent of the total shares at most and its major shareholders are the company's senior management, members of enterprise which it is affiliated to and core backbones.
○Machine Tool to raise RMB bln to invest in intelligent machine tool and other projects
------
Shenyang Machine Tool Co., Ltd. (000410.SZ) intends to raise 3 billion yuan by issuing shares at the floor price of 15.96 yuan per share through private placement from no more than ten investors including its controlling shareholder (which will subscribe the shares worth no more than 300 million yuan). The fundraising will be invested in such projects as industrialization upgrading of intelligent machine tool, marketing network upgrading, technology innovation platform and loan repayment. The company's latest stock price stood at 18.79 yuan per share before the trading suspension.
○Chenming Paper Holdings to raise RMB8 bln to invest in papermaking and leasing sectors
------
Shandong Chenming Paper Holdings Limited is going to raise 8 billion yuan by raising 1,062 million shares through private placement to invest in a project with annual production of 400,000 tons of bleached chemical wood pulp, make additional investment in Shandong Chenming Finance Leasing Co., Ltd. and supplement working capitals. The company's controlling shareholder will subscribe the shares worth no less than 2 billion yuan. The stock price in this private placement will be no less than 7.53 yuan per share and it was 8.8 yuan per share before the trading suspension.
○PetroChina Jinhong Energy Investment cooperates with CSNE
------
PetroChina Jinhong Energy Investment Co., Ltd. (000669.SZ) terminates major recombination matters and will cooperate with Liang Jinda and 80 gas stations controlled by Liang by stages to establish liquefied natural gas or compressed natural gas stations based on the existing ones.
Meanwhile, the company will sign strategic cooperation agreement with China Shipbuilding (Shanghai) New Energy Company (CSNE) to conduct overall strategic cooperation in several energy utilization fields including new energy and energy innovation, energy Internet, intelligent energy and intelligent environmental protection.
TOP
[Financial Reports Express]
○Net profit of Do-Fluoride Chemicals expected to surge in semiyearly report
------
New profit of Do-Fluoride Chemicals Co., Ltd. (002407.SZ) grows by 1,245 percent in the first quarter and is expected to rise by 2,500-2,550 percent in the first half of 2016 as lithium hexafluorophosphate enters booming cycle. Net profit of Nanji E-commerce Co., Ltd. (002127.SZ) is predicted to increase by 260-307 percent in the first quarter of this year mainly due to hike in the authorized dealers and improvement in e-commerce ecological service quality. The company proposes a 10-for-10 conversion of capital surplus into shares
New profit of Shenzhen H＆T Intelligent Control Co., Ltd. (002402.SZ) soar by 113 percent in the first quarter and is expected to jump by 50-80 percent in the first half of 2016 resulting from stable development of principal business which has improved gross profit rate.
○Kangsheng proposes high share conversion and dividend
------
Zhe Jiang Kangsheng Co., Ltd. (002418.SZ) turns losses into profits according its annual report and its board of directors approves the proposal with a 20-for-10 conversion of capital surplus into shares combined with 1 yuan dividend for every 10 shares in the annual report. Its net profit is expected to rise by 67-92 percent according to its first quarterly report. Net profit of (300477.SZ) surges by 16 percent according to its annual report for 2015 and its board of directors approves the proposal with a 15-for-10 conversion of capital surplus into shares combined with 4 yuan dividend for every 10 shares in its annual report.
[Trading Trends]
○Jiaao Enprotech Stock to launch IPO on April 18
------
Zhejiang Jiaao Enprotech Stock Co., Ltd. (732822) will launch IPO at 11.76 yuan per share with an upper limit of 18,000 shares per account. The P/E ratio is 23 times. Investors who succeed in subscribing the stocks should pay on April 20.
[Weekly Review]
○Why no significant surge in stock market
------
In spite of loose risk control of securities brokerages, improved economic data and strong recommendation by famous analysts, the A shares still experienced moderate fluctuation last week.
Why does the breakthrough with surging trading volume not take place for so long? SSN thinks that the breakthrough in stock indexes usually needs to be led by the big-cap sector, but there is no leading sector at present. The market believes that banking sector has become a tool, resource stocks depend on overnight futures, there lacks leader in the real estate industry after China Vanke Co., Ltd. (000002.SZ) suspended trading and securities traders frequently entangle investors. In addition, with strengthening efforts in supervision, cases raising stocks prices violently in a succession are decreasing and leading stocks effect are weakening. In view of investors' psychology, investors have become extremely frightened after three rounds of significant plummet. As a result, scrolling operation has become a mainstream and blind investors holding stocks are dropping. It needs time and money-making effect to ease the psychic trauma of investors, but most of the current hot topics feature poor continuity, making it difficult for investors to make profits.
However, the market is still abundant in capitals at present. After the tier-1 cities carry out policies with housing restriction, the stock market's allocation value is improving and part of the capitals are desired to take long positions. With the promotion of reform and staged economic recovery, new substantial topics are expected to come up to refuel investors' passion.
TOP
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