[Today's Guide]
○ State Council executive meeting proposes to strengthen application of industrial cloud, promoting development of general aviation industry
○ Chines govt. to crack down internet infringement, copy right service expected to see wide space
○ Tongwei buys photovoltaic asset
○ Joyson Electronic to expand robot, Shengyi Technology sees shareholding increase by substantial shareholder
[SSN Focus]
○ State Council executive meeting proposes to strengthen application of industrial cloud, promoting development of general aviation industry
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The State Council executive meeting held on May 4 proposes to deploy and promote in-depth integration of the manufacturing industry and Internet, requiring to strengthen the application of industry cloud and big data, and set up pilot demonstrations for intelligent manufacturing system solutions. The meeting also mapped out plans to promote the development of the general aviation industry, accelerating the construction of general civil airport and steadily expand the opening of low-altitude airspace.
Comment: industrial cloud can lower the threshold of infomationization, and enable more small and medium-sized enterprises to enter infomationization area with lower costs. Shanghai MJ Intelligent System Co., Ltd, a subsidiary of Henan Huanghe Whirlwind Co., ltd. (600172.SH), launched "Newton 1.0" operating system, which can solve the information docking problem between low-end domestic equipment and advanced Industrial 4.0 technology; Kyland Technology Co., Ltd. (300353.SZ) owns industry server technology based on cloud control. In terms of the general aviation industry, the National Development and Reform Commission (NDRC) is formulating guidelines on the national level, to promote the development of the general aviation industry. The Civil Aviation Administration of China (CAAC) is also likely to issue the 13th Five-Year general aviation development plan, with the goal of building over 500 civil airports. The size of the whole industry is more than 1 trillion yuan.
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[SSN Selection]
○ The NDRC and the Ministry of Housing and Urban-Rural Development (MHURD) on May 4 jointly published Chengdu-Chongqing urban agglomeration development plan, aiming to explore mutual promotion and joint development of new type of urbanization and agricultural modernization.
○ Sold area of newly built residential houses in 30 typical cities in April increased by 61 percent, hitting historic high. Housing sales in second and third tier cities were active.
○ Carbon black enterprises such as Jiangxi Black Cat Carbon Black Inc., Ltd. (002068.SZ) and Longxing Chemical Stock Co., ltd. (002442.SZ) have raised the quotation by 300 to 500 yuan per ton, and indicated that the price may be further increased in the next month.
○Reuters reported that the Dalian Wanda Commercial Properties Co., Ltd may consider backdoor listing in China's A-share market if its IPO plan cannot be approved immediately.
○ According to a previous announcement released by Leshi Internet Information ＆ Technology Corp., Beijing (300104.SZ), the company will disclose major assets reorganization plan or report by May 7, and will resume trading once approved by the Shenzhen Stock Exchange.
[Industry Information]
○ Chines govt. to crack down internet infringement, copy right service expected to see wide space
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The State Council recently released working focuses on cracking down intellectual property right infringement and counterfeit and inferior goods manufacturing and sales nationwide in 2016. The paper proposes to strengthen the governance of intellectual property right infringement and counterfeit in Internet area, and deepen the software licensing work. The paper also suggested that the 12th "Internet Sword" move against Internet infringement and pirate in key areas such as Internet (mobile) literature, music, video, game, animation and software will be rolled out. The regulators will further expand key regulation scope for copy right, and explore effective governance models for new type of Internet infringement and pirate.
Comment: institutions pointed out that China's digital publication industry has recorded a compounded growth rate of 41.32 percent since 2006. Driven by the establishment of complete legal system and incentive policy, digital publication service industry will see substantial development. In listed companies, Xiamen Anne Co. ltd (002235.SZ) proposes to acquire Efida, which is engaged in digital copyright service, and institutions are optimistic about the company's strength in technology and platform; Elefirst Science ＆Technology Co., ltd. (300356.SZ) participated in the construction, management and operation of the "national digital sound transmission service platform" (copyright cloud).
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[Announcement Interpretation]
○ Luolai Lifestyle Technology proposes to raise fund to increase investment in home life
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Luolai Lifestyle Technology Co., Ltd. (002293.SZ) proposes to raise 1.25 billion yuan through private placement at 12.04 yuan per share (ex-dividend), which will be used for whole channel home life O2O operating system and supply chain system optimization projects. Weifa Investment plans to participate in the subscription with 600 million yuan. The actual controller of the company is its controlling shareholder; besides, Shaoyuan Jiuding, Qili Jiuding and Hongtai Jiuding are parties acting in concert, whose executive partner is Lasa Kunwu Jiuding under the listed company Kunwu Jiuding Investment Holdings Co., Ltd. (600053.SH), plan to subscribe with 510 million yuan.
○ Tongwei receives RMB5 bln investment in photovoltaic
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Tongwei Co., Ltd. (600438.SH) plans to acquire 100 equities of Tongwei Solar (Hefei) Co., Ltd. for 4,984 million yuan by issuing shares to its substantial shareholder Tongwei Group at 10.92 yuan per share. It plans to raise 3 billion supporting fund by issuing shares at prices no less than 10.92 yuan per share to invest in the second phase of 2.3GW high-efficiency crystalline silicon cell of Tongwei Solar.
Tongwei Solar currently owns more than 2GW capacity in polycrystalline silicon cell and 350MW productivity in module. It committed that the company's net profit from 2016 to 2019 will be 395 million yuan, 608 million yuan, 769 million yuan and 820 million yuan, respectively. After the reorganization, Tongwei will develop crystalline silicon cell and further improve its layout in the photovoltaic industry chain.
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○ Joyson Electronic to acquire American industrial robot firm
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PIA, a wholly-owned subsidiary of Ningbo Joyson Electronic Corp. (600699.SH) proposes to acquire 100 equities of America company EVANA and its intellectual proerty for 19.5 million U.S. dollars (about 126 billion yuan). The target company is mainly engaged in the research and development, manufacturing and integration of industrial robots and automation system. EVANA posted a sales revenue of 23,434,000 U.S. dollars in the latest fiscal year. This acquisition will improve Joyson Electronic's international service capability in industrial robots and automation business and improve its layout in industry chain and products.
○ Guangxin Group increased shareholding in Shengyi Technology
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Shengyi Technology Co., Ltd. (600183.SH) announces that its substantial shareholder Guangdong Guangxin Holdings Group Ltd. increased holding a total of 56,276,100 shares in the company at an average price of 8.16 yuan per share for about 459 million yuan from September 15, 2015 to May 4, 2016, accounting for 3.91 percent of its total share capital. The total proportion of Guangxin Group's shareholding in the company raised from 16.26 to 20.01 percent. Guangxin Group said that it may continue to increase shareholding in the company as it is optimistic about the industry's prospect. Guangxin Group is wholly owned by the People's Government of Guangdong Province. It ascended to the largest shareholder of Shengyi Technology in last September; while Dongguan Guohong Investment Co., Ltd. owned by the State-owned Assets Supervision and Administration Commission of Dongguan Government retreated to its second largest shareholder. The latest stock price of Shengyi Technology closed at 8.92 yuan per share.
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○ Dian Diagnostics to control Dian Huaxing Medical Examination for RMB115 mln to develop regional market
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Hangzhou Dian Medical Examination Co., Ltd., the wholly-owned subsidiary of Zhejiang Dian Diagnostics Co., Ltd. (300244.SZ), plans to buy 55 percent equities of Jiangxi Dian Huaxing Medical Examination Co., Ltd fr 115 million yuan. Dian Huaxing Medical Examination is a outsourcing service provider in professional medical examination and pathological diagnosis for medical institutions at all level. It covers over medical institutions in Jiangxi Provinces, accounting for over 50 percent share in the local market.
○ HMT New Technical Materials to expand automotive passive safety system
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HMT (Xiamen) New Technical Materials Co., Ltd. (603306.SH) plans to raise 780 million yuan by issuing 22 million shares through private placement. All the proceeds will be used in the expansion of automotive passive safety system components. After the project reaches designed capacity, its net profit will increase by 190 million yuan annually on average.
[Trading Trends]
○ Institutions bought OLED theme stocks
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The trading volume ranking list on May 4 shows that several OLED related stocks made on the list. IRICO Display Devices Co., Ltd. (600707.SH) was bought by three institutions with a total amount of 149 million yuan, accounting for 30.02 percent of its intraday turnover. Sino Wealth Electronic Ltd. (300327.SZ) was bought by two institutions with a total amount of 49.13 million yuan, accounting for 10.92 percent of its intraday turnover. One institutional seats sold 7.47 million yuan. In addition, Victory Giant Technology (HuiZhou) Co., Ltd. (300476.SZ) and Shenzhen Selen Science ＆ Technology Co., Ltd. (002341.SZ) also were bought by institutional seats.
Comments: Apple Inc. (NASDAQ: APPL) has disclosed that it will adopt OLED screen for its new iPhone in 2017 and plan to apply the screen to iPad and MacBook. Institutions estimated that the AMOLED panel market will reach a scale of 15 billion U.S. dollars in 2016, representing a year-on-year increase of about 40 percent, and is expected to reach 67 billion U.S. dollars in 2020, with a compound annual growth rate of about 46 percent.
[Trading Alarms]
○ Baili Engineering Science ＆ Technology to debut IPO on May 5
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Hunan Baili Engineering Science ＆ Technology (732959) will offer shares at 6.03 yuan per share with an upper limit of 22,000 shares for each applicant. The company's PE ratio is 23 times. It is mainly engaged in petrochemical engineering service.
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