[Today's Guide]
○Symposium on cyber security and informatization held, proposing to speed up construction of core technologies
○Action plan on promoting in-depth integration of industrialization and informatization printed and distributed, industrial Internet to see continuous push
○Jingui Silver Industry to raise RMB1.88 bln through private placement to increase silver capacity, DragonNet Technology to invest in intelligent cloud project
○Companies under Anbang Insurance buy massive shares of Dashang, Net profits of Sinonet ＆ Xinlong Science ＆ Technology and Muyuan Foods expected to surge in semiyearly reports
[SSN Focus]
○Symposium on cyber security and informatization held, proposing to speed up construction of core technologies
------
In a keynote speech addressed at a symposium on cyber security and informatization held on April 19, Chinese President Xi Jinping stressed to intensify management of cyber space according to laws, reinforce construction of contents in cyberspace and strengthen positive publicity; achieve breakthroughs in core information technologies; speed up the construction of security guarantee system for critical information infrastructure; understand the status of network security round the clock and across the board; sharpen the defense capability and deterrent force of cyber security.
Comment: The number of netizens in China approaches 700 million now. Internet plays an increasing role in guiding public opinions and reflecting people's will. Since online public opinions are large in quantity, certain technical means must be utilized to realize information management and maintain cyber security. As to listed companies, Beijing TRS Information Technology Co., Ltd. (300229.SZ) provides products involved in the analysis of public opinions through big data as well as text mining software; Xiamen Meiya Pico Information Co., Ltd. (300188.SZ) is engaged in business including online supervision and the protection of digital intellectual property; Bluedon Information Security Technologies Co., Ltd. (300297.SZ) recently launched its security product for mobile phones.
[SSN Selection]
○The General Office of the State Council on April 19 released the 2016 action plan for implementing quality development outline, requiring obsoleting outdated capacity in industries like coal and iron ＆ steel according to standards.
○The first meeting of the inter-ministerial joint meeting on promoting the development of big data was held recently. The meeting deliberated and passed the three-year work plan on promoting the development of big data.
○Second-tier cities under surveillance see a month-on-month growth of 9 percent in terms of floor space transacted in the first half of April, suggesting that the total transaction in April might hit a record high.
○China Broadcasting Network Co., Ltd. entered into agreement with Hebei Broadcasting, TV and Information Network Group Co., Ltd. on April 19, representing a breakthrough in the integration of national cable TV network.
○Baidu Map on April 19 announced its globalization strategy which is to introduce life services including catering and car into overseas maps.
TOP
[Industry Information]
○Action plan on promoting in-depth integration of industrialization and informatization printed and distributed, industrial Internet to see continuous push
------
The Ministry of Industry and Information Technology (MIIT) recently printed and distributed the 2016 implementation scheme for the special actions on promoting in-depth integration of industrialization and informatization, as reported on the website of MIIT on April 19. The scheme proposes to quicken the integration of manufacturing industry and the Internet, reach a penetration rate of 50 percent of "mass innovation and entrepreneurship" platforms in key industries and enterprises, foster a batch of piloting demonstration service platforms engaged in industrial cloud and industrial big data, and achieve an average annual growth of 20 percent in terms of the enterprise-level users of industrial cloud. According to the scheme, international cooperation in intelligent manufacturing will be developed later, and a slew of guidance and national standards will be released and submitted for approval.
Comment: Along with the implementation of the scheme, the industrial Internet might see continuous push. Institutions point out that Internet has expanded from areas including consumption, retailing, entertainment and finance to the manufacturing industry, and it might enhance industrial operation efficiency in a disruptive manner. As to listed companies, Kyland Technology Co., Ltd. (300353.SZ), a leading enterprise in Ethernet switch for industrial use, actively seeks for innovation in industrial Internet area; Beijing Jiaxun Feihong Electrical Co., Ltd. (300213.SZ) adds stakes in the perception and execution of industrial data. Institutions are optimistic about its arrangement in industrial Internet.
○Price hike of hogs continues, downstream fodder industry expected to boom
------
The average price of hogs available for slaughter hiked from 19.69 yuan per kilogram in last week to 19.86 yuan per kilogram, representing a 55 percent increase compared with the same period last year. Various profitability indicators of the hog market keep setting new record highs, stimulating the increase of piglet and sow. Data shows that the inventory of hogs climbed slightly compared with that of February, indicating that the inventory of hogs has bottomed out. The demand for fodder also climbs accordingly.
Comment: The fodder industry, seeing decreased price of corn, might see gradually improving profitability. As to listed companies, Beijing Dabeinong Technology Group Co., Ltd. (002385.SZ) is the biggest gunk manufacturer in China. Jiangxi Zhengbang Technology Co., Ltd. (002157.SZ) accounts for nearly 90 percent of its main business revenue and it ranks high in the market share across China. Liaoning Wellhope Agri-Tech Joint Stock Co., Ltd. (603609.SH) is a fodder leader in northeast region. It has been advancing the integration of industrial chains.
TOP
[Announcement Interpretation]
○Jingui Silver Industry to raise RMB1.88 bln through private placement to increase silver capacity
------
Chenzhou City Jingui Silver Industry Co., Ltd. (002716.SZ) proposes to raise 1.88 billion yuan through private placement at no less than 11.76 yuan per share. Cao Yonggui, actual controller of the company, will subscribe no less than 200 million yuan. The raised fund will be invested in the expansion of the clean extraction project of highly-pure silver, comprehensive utilization project of secondary antimony resources and the construction of national-level enterprise technology center as well as to pay off bank loans. After above projects are put into production, the company will see largely-increased production scale of silver, sharpened resource recycling abilities and improved profitability.
The company also claims that it will raise 100 million yuan through employee shareholding plan. An asset management plan will be established. No higher than 200 million yuan will be raised for purchasing the company's stocks in the secondary market. It is estimated that the raised fund can purchase 13.70 million shares of the company, accounting for 2.72 percent of its total share capital.
○DragonNet Technology to raise RMB800 mln through private placement to invest in intelligent cloud project
------
Shanghai DragonNet Technology Co., Ltd. (300245.SZ) proposes to raise 800 million yuan through private placement from no more than five specific investors. The raised fund will be invested in the construction of intelligent data center project, intelligent communication cloud project as well as the construction of the R＆D center and the office building in the headquarter.
○Jinming Machinery to raise RMB690 mln through private placement, son of controlling shareholder to subscribe shares
------
Guangdong Jinming Machinery Co., Ltd. (300281.SZ) plans to raise 678 million yuan by issuing 68 million shares through private placement. Ma Jiazhen, the company's director and general manager and son of the company's controlling shareholder, intends to subscribe shares with value ranging from 100 million yuan and 200 million yuan. The fundraising will be used in building multi-function film plant construction, farm-oriented ecological film intelligent equipment, smart service platform for cloud big data and supplementing working capitals.
○Bauing Construction to raise RMB2 bln through private placement, Evergrande Life Assurance to buy shares worth RMB650 mln
------
Shenzhen Bauing Construction Holding Group Co., Ltd. (002047.SZ) plans to raise 1,978 million yuan by issuing 210 million shares at 9.42 yuan per share through private placement to supplement working capitals. Its biggest client Evergrande Life Assurance Co., Ltd., which is related party of Evergrande Group, will purchase 69 million shares worth 650 million yuan, increasing its shareholding proportion from 1.83 percent to 6.25 percent and making it the company's substantial shareholder. Gu Shaoming, actual controller of Bauing Construction, and other members from family Gu will subscribe the shares accounting for 31.75 percent.
Comment: This is the first time for Evergrande Life Assurance to participate in private placement of A shares. After this cooperation, Evergrande Group and Bauing Construction are expected to carry out cooperation in capital, industry and other sectors.
○General meeting of shareholders of Aodong Phar. Group approved share repurchase plan
------
General meeting of shareholders of Jilin Aodong Pharmaceutical Group Co., Ltd. (000623.SZ) has approved the proposal on repurchasing the company's shares. The company announced the stock repurchase plan on March 29, intending to re-buy the stocks at no more than 35 yuan per share. The stocks to be repurchased will be worth of no more than 500 million yuan and account for 2.5 percent of the company's share capital at most. And these stocks will be used for employee shareholding plan.
○Maoye Commercial to acquire commodity retailing assets at RMB1,565 mln
------
Maoye Commercial Co., Ltd. (600828.SH) is going to pay 1,565 million yuan in cash to purchase 70 percent equity of Victory Group. Victory Group is engaged in commodity retailing business and owns 6 department stores, 15 supermarkets and 3 real estate companies with business scope covering Hohhot and Baotou cities. According to performance commitment, net profits of Victory Group will not be less than 20.74 million yuan, 22.81 million yuan and 25.10 million yuan in next three years respectively.
○Tiancheng Controls acquires CCC on automotive child safety seat
------
Zhejiang Tiancheng Controls Co., Ltd. (603085.SH) has acquired two China Compulsory Certifications (CCC) on child safety seat for automobiles, which are issued by China Certification Center for Automotive Products. The company plans to sell automotive child safety seat products through e-commerce (for example, T-mall flagship stores), cooperative marketing with main engine plants of passenger vehicles and 4S stores and other marketing models.
TOP
[Financial Reports Express]
○Companies under Anbang Insurance buy massive shares of Dashang
------
The first quarterly report of Dashang Co., Ltd. (600694.SH) shows that the conservative investment portfolio of Anbang Life Insurance Co., Ltd. holds 11.02 percent equity of the company, group products of Anbang Pension Insurance Co., Ltd. holds 3.26 percent equity, making the shareholding proportion of Anbang Insurance Group reaching 14.20 percent. On Dec. 21 last year, the company disclosed that Anbang Insurance held 10 percent equity in the company, and it can be learnt from its annual report that Anbang Group continued to buy scores of shocks of the company in the first quarter. In spite of remarkable decline in the whole retail industry, Dashang maintains moderate performance and achieves 294 million yuan of net profits in the first quarter, up by 0.61 percent.
Comment: Anbang Insurance bought the share of Dashang at price ranging from 39.50 yuan and 58 yuan through secondary market acquisition to the 5 percent limit for two times in last December, but the average stocks price of Dashang stood at about 39.5 yuan and its latest stock price is 38.65 yuan. Therefore, companies under Anbang Insurance are supposed to be suffering floating deficits now.
○Net profits of Sinonet ＆ Xinlong Science ＆ Technology and Muyuan Foods expected to surge in semiyearly reports
------
Net profit of Anhui Sinonet ＆ Xinlong Science ＆ Technology Co., Ltd. (002298.SZ) surges 1,276 percent in the first quarter and is expected to rise by 680-730 percent in the first half of the year, which is mainly contributed by increasing businesses of anti-terrorism and public security and smart cities. Net profit of Muyuan Foods Co., Ltd. (002714.SZ) moves up by 1,922 in the first quarterly report and is expected to hike by 1,985-2,035 percent in semiyearly report due to remarkable increase in pig slaughter. Net profit of Dehua TB New Decoration Material Co., Ltd. (002043.SZ) moves up by 348 in the first quarterly report and is expected to hike by 180 -210 percent in semiyearly report thanks to gains in sales revenue.
○Jiangnan Water and others propose high share conversion and dividend
------
Jiangsu Jiangnan Water Co., Ltd. (601199.SH) sees a profit growth of 52 percent in 2015 and proposes a 10-for-10 conversion of capital surplus into shares combined with 0.18 yuan dividend for every 10 shares. Net profit of Hangzhou CNCR-IT Co., Ltd. (300250.SZ) hikes by 124 percent in 2015 and the company proposes a 10-for-10 conversion of capital surplus into shares combined with 2.6 yuan dividend for every 10 shares. Net profit of Boomsense Technology Co., Ltd. (300312.SZ) plunges slightly by 0.11 percent in 2015 and the company proposes a 10-for-10 conversion of capital surplus into shares combined with 0.3 yuan dividend for every 10 shares. Net profit of Jiangxi Selon Industrial Co., Ltd. (002748.SZ) slips by 55 percent in 2015 and the company proposes a 10-for-10 conversion of capital surplus into shares combined with 0.8 yuan dividend for every 10 shares.
[Trading Alarms]
○Aoliwei Sensor to launch IPO on April 20
------
Jiangsu Aoliwei Sensor Hi-tech Co., Ltd. (300507.SZ) will launch IPO at 24.92 yuan per share with an upper limit of 16,500 shares per account. The P/E ratio is 23 times. The company is specialized in auto components and parts.
TOP
○Symposium on cyber security and informatization held, proposing to speed up construction of core technologies
○Action plan on promoting in-depth integration of industrialization and informatization printed and distributed, industrial Internet to see continuous push
○Jingui Silver Industry to raise RMB1.88 bln through private placement to increase silver capacity, DragonNet Technology to invest in intelligent cloud project
○Companies under Anbang Insurance buy massive shares of Dashang, Net profits of Sinonet ＆ Xinlong Science ＆ Technology and Muyuan Foods expected to surge in semiyearly reports
[SSN Focus]
○Symposium on cyber security and informatization held, proposing to speed up construction of core technologies
------
In a keynote speech addressed at a symposium on cyber security and informatization held on April 19, Chinese President Xi Jinping stressed to intensify management of cyber space according to laws, reinforce construction of contents in cyberspace and strengthen positive publicity; achieve breakthroughs in core information technologies; speed up the construction of security guarantee system for critical information infrastructure; understand the status of network security round the clock and across the board; sharpen the defense capability and deterrent force of cyber security.
Comment: The number of netizens in China approaches 700 million now. Internet plays an increasing role in guiding public opinions and reflecting people's will. Since online public opinions are large in quantity, certain technical means must be utilized to realize information management and maintain cyber security. As to listed companies, Beijing TRS Information Technology Co., Ltd. (300229.SZ) provides products involved in the analysis of public opinions through big data as well as text mining software; Xiamen Meiya Pico Information Co., Ltd. (300188.SZ) is engaged in business including online supervision and the protection of digital intellectual property; Bluedon Information Security Technologies Co., Ltd. (300297.SZ) recently launched its security product for mobile phones.
[SSN Selection]
○The General Office of the State Council on April 19 released the 2016 action plan for implementing quality development outline, requiring obsoleting outdated capacity in industries like coal and iron ＆ steel according to standards.
○The first meeting of the inter-ministerial joint meeting on promoting the development of big data was held recently. The meeting deliberated and passed the three-year work plan on promoting the development of big data.
○Second-tier cities under surveillance see a month-on-month growth of 9 percent in terms of floor space transacted in the first half of April, suggesting that the total transaction in April might hit a record high.
○China Broadcasting Network Co., Ltd. entered into agreement with Hebei Broadcasting, TV and Information Network Group Co., Ltd. on April 19, representing a breakthrough in the integration of national cable TV network.
○Baidu Map on April 19 announced its globalization strategy which is to introduce life services including catering and car into overseas maps.
TOP
[Industry Information]
○Action plan on promoting in-depth integration of industrialization and informatization printed and distributed, industrial Internet to see continuous push
------
The Ministry of Industry and Information Technology (MIIT) recently printed and distributed the 2016 implementation scheme for the special actions on promoting in-depth integration of industrialization and informatization, as reported on the website of MIIT on April 19. The scheme proposes to quicken the integration of manufacturing industry and the Internet, reach a penetration rate of 50 percent of "mass innovation and entrepreneurship" platforms in key industries and enterprises, foster a batch of piloting demonstration service platforms engaged in industrial cloud and industrial big data, and achieve an average annual growth of 20 percent in terms of the enterprise-level users of industrial cloud. According to the scheme, international cooperation in intelligent manufacturing will be developed later, and a slew of guidance and national standards will be released and submitted for approval.
Comment: Along with the implementation of the scheme, the industrial Internet might see continuous push. Institutions point out that Internet has expanded from areas including consumption, retailing, entertainment and finance to the manufacturing industry, and it might enhance industrial operation efficiency in a disruptive manner. As to listed companies, Kyland Technology Co., Ltd. (300353.SZ), a leading enterprise in Ethernet switch for industrial use, actively seeks for innovation in industrial Internet area; Beijing Jiaxun Feihong Electrical Co., Ltd. (300213.SZ) adds stakes in the perception and execution of industrial data. Institutions are optimistic about its arrangement in industrial Internet.
○Price hike of hogs continues, downstream fodder industry expected to boom
------
The average price of hogs available for slaughter hiked from 19.69 yuan per kilogram in last week to 19.86 yuan per kilogram, representing a 55 percent increase compared with the same period last year. Various profitability indicators of the hog market keep setting new record highs, stimulating the increase of piglet and sow. Data shows that the inventory of hogs climbed slightly compared with that of February, indicating that the inventory of hogs has bottomed out. The demand for fodder also climbs accordingly.
Comment: The fodder industry, seeing decreased price of corn, might see gradually improving profitability. As to listed companies, Beijing Dabeinong Technology Group Co., Ltd. (002385.SZ) is the biggest gunk manufacturer in China. Jiangxi Zhengbang Technology Co., Ltd. (002157.SZ) accounts for nearly 90 percent of its main business revenue and it ranks high in the market share across China. Liaoning Wellhope Agri-Tech Joint Stock Co., Ltd. (603609.SH) is a fodder leader in northeast region. It has been advancing the integration of industrial chains.
TOP
[Announcement Interpretation]
○Jingui Silver Industry to raise RMB1.88 bln through private placement to increase silver capacity
------
Chenzhou City Jingui Silver Industry Co., Ltd. (002716.SZ) proposes to raise 1.88 billion yuan through private placement at no less than 11.76 yuan per share. Cao Yonggui, actual controller of the company, will subscribe no less than 200 million yuan. The raised fund will be invested in the expansion of the clean extraction project of highly-pure silver, comprehensive utilization project of secondary antimony resources and the construction of national-level enterprise technology center as well as to pay off bank loans. After above projects are put into production, the company will see largely-increased production scale of silver, sharpened resource recycling abilities and improved profitability.
The company also claims that it will raise 100 million yuan through employee shareholding plan. An asset management plan will be established. No higher than 200 million yuan will be raised for purchasing the company's stocks in the secondary market. It is estimated that the raised fund can purchase 13.70 million shares of the company, accounting for 2.72 percent of its total share capital.
○DragonNet Technology to raise RMB800 mln through private placement to invest in intelligent cloud project
------
Shanghai DragonNet Technology Co., Ltd. (300245.SZ) proposes to raise 800 million yuan through private placement from no more than five specific investors. The raised fund will be invested in the construction of intelligent data center project, intelligent communication cloud project as well as the construction of the R＆D center and the office building in the headquarter.
○Jinming Machinery to raise RMB690 mln through private placement, son of controlling shareholder to subscribe shares
------
Guangdong Jinming Machinery Co., Ltd. (300281.SZ) plans to raise 678 million yuan by issuing 68 million shares through private placement. Ma Jiazhen, the company's director and general manager and son of the company's controlling shareholder, intends to subscribe shares with value ranging from 100 million yuan and 200 million yuan. The fundraising will be used in building multi-function film plant construction, farm-oriented ecological film intelligent equipment, smart service platform for cloud big data and supplementing working capitals.
○Bauing Construction to raise RMB2 bln through private placement, Evergrande Life Assurance to buy shares worth RMB650 mln
------
Shenzhen Bauing Construction Holding Group Co., Ltd. (002047.SZ) plans to raise 1,978 million yuan by issuing 210 million shares at 9.42 yuan per share through private placement to supplement working capitals. Its biggest client Evergrande Life Assurance Co., Ltd., which is related party of Evergrande Group, will purchase 69 million shares worth 650 million yuan, increasing its shareholding proportion from 1.83 percent to 6.25 percent and making it the company's substantial shareholder. Gu Shaoming, actual controller of Bauing Construction, and other members from family Gu will subscribe the shares accounting for 31.75 percent.
Comment: This is the first time for Evergrande Life Assurance to participate in private placement of A shares. After this cooperation, Evergrande Group and Bauing Construction are expected to carry out cooperation in capital, industry and other sectors.
○General meeting of shareholders of Aodong Phar. Group approved share repurchase plan
------
General meeting of shareholders of Jilin Aodong Pharmaceutical Group Co., Ltd. (000623.SZ) has approved the proposal on repurchasing the company's shares. The company announced the stock repurchase plan on March 29, intending to re-buy the stocks at no more than 35 yuan per share. The stocks to be repurchased will be worth of no more than 500 million yuan and account for 2.5 percent of the company's share capital at most. And these stocks will be used for employee shareholding plan.
○Maoye Commercial to acquire commodity retailing assets at RMB1,565 mln
------
Maoye Commercial Co., Ltd. (600828.SH) is going to pay 1,565 million yuan in cash to purchase 70 percent equity of Victory Group. Victory Group is engaged in commodity retailing business and owns 6 department stores, 15 supermarkets and 3 real estate companies with business scope covering Hohhot and Baotou cities. According to performance commitment, net profits of Victory Group will not be less than 20.74 million yuan, 22.81 million yuan and 25.10 million yuan in next three years respectively.
○Tiancheng Controls acquires CCC on automotive child safety seat
------
Zhejiang Tiancheng Controls Co., Ltd. (603085.SH) has acquired two China Compulsory Certifications (CCC) on child safety seat for automobiles, which are issued by China Certification Center for Automotive Products. The company plans to sell automotive child safety seat products through e-commerce (for example, T-mall flagship stores), cooperative marketing with main engine plants of passenger vehicles and 4S stores and other marketing models.
TOP
[Financial Reports Express]
○Companies under Anbang Insurance buy massive shares of Dashang
------
The first quarterly report of Dashang Co., Ltd. (600694.SH) shows that the conservative investment portfolio of Anbang Life Insurance Co., Ltd. holds 11.02 percent equity of the company, group products of Anbang Pension Insurance Co., Ltd. holds 3.26 percent equity, making the shareholding proportion of Anbang Insurance Group reaching 14.20 percent. On Dec. 21 last year, the company disclosed that Anbang Insurance held 10 percent equity in the company, and it can be learnt from its annual report that Anbang Group continued to buy scores of shocks of the company in the first quarter. In spite of remarkable decline in the whole retail industry, Dashang maintains moderate performance and achieves 294 million yuan of net profits in the first quarter, up by 0.61 percent.
Comment: Anbang Insurance bought the share of Dashang at price ranging from 39.50 yuan and 58 yuan through secondary market acquisition to the 5 percent limit for two times in last December, but the average stocks price of Dashang stood at about 39.5 yuan and its latest stock price is 38.65 yuan. Therefore, companies under Anbang Insurance are supposed to be suffering floating deficits now.
○Net profits of Sinonet ＆ Xinlong Science ＆ Technology and Muyuan Foods expected to surge in semiyearly reports
------
Net profit of Anhui Sinonet ＆ Xinlong Science ＆ Technology Co., Ltd. (002298.SZ) surges 1,276 percent in the first quarter and is expected to rise by 680-730 percent in the first half of the year, which is mainly contributed by increasing businesses of anti-terrorism and public security and smart cities. Net profit of Muyuan Foods Co., Ltd. (002714.SZ) moves up by 1,922 in the first quarterly report and is expected to hike by 1,985-2,035 percent in semiyearly report due to remarkable increase in pig slaughter. Net profit of Dehua TB New Decoration Material Co., Ltd. (002043.SZ) moves up by 348 in the first quarterly report and is expected to hike by 180 -210 percent in semiyearly report thanks to gains in sales revenue.
○Jiangnan Water and others propose high share conversion and dividend
------
Jiangsu Jiangnan Water Co., Ltd. (601199.SH) sees a profit growth of 52 percent in 2015 and proposes a 10-for-10 conversion of capital surplus into shares combined with 0.18 yuan dividend for every 10 shares. Net profit of Hangzhou CNCR-IT Co., Ltd. (300250.SZ) hikes by 124 percent in 2015 and the company proposes a 10-for-10 conversion of capital surplus into shares combined with 2.6 yuan dividend for every 10 shares. Net profit of Boomsense Technology Co., Ltd. (300312.SZ) plunges slightly by 0.11 percent in 2015 and the company proposes a 10-for-10 conversion of capital surplus into shares combined with 0.3 yuan dividend for every 10 shares. Net profit of Jiangxi Selon Industrial Co., Ltd. (002748.SZ) slips by 55 percent in 2015 and the company proposes a 10-for-10 conversion of capital surplus into shares combined with 0.8 yuan dividend for every 10 shares.
[Trading Alarms]
○Aoliwei Sensor to launch IPO on April 20
------
Jiangsu Aoliwei Sensor Hi-tech Co., Ltd. (300507.SZ) will launch IPO at 24.92 yuan per share with an upper limit of 16,500 shares per account. The P/E ratio is 23 times. The company is specialized in auto components and parts.
TOP
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