[Today's Guide]
○Shanghai 3F New Materials seeks for equity change, Shanghai SASAC accelerates in vitalizing listing platforms
○Evergrande Group to invest over RMB3.6 bln to control China Calxon Group, Shares of Jiangsu Fasten and Greattown bought through secondary market acquisition to the 5 percent limit
○Absen Optoelectronic invests and participates in sports field display company, Dashang Group increases shareholding in Dashang again
○Various governments propel construction of charging piles, industrial investment to speed up
[SSN Focus]
○Shanghai 3F New Materials seeks for equity change, Shanghai SASAC accelerates in vitalizing listing platforms
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Shanghai 3F New Materials Company Limited (600636.SH) released an announcement on the evening of May 9 that the company begins to suspend trading from now on as its substantial shareholder Shanghai Huayi (Group) Company is mulling over matters related to the company's equity transfer and. Recently, the State-owned Assets Supervision and Administration Commission (SASAC) of Shanghai Municipality is accelerating in vitalizing listed companies under it. The SASAC of Pudong district, substantial shareholder of Shang Gong Group Co., Ltd. (600843.SH), and Bailian Group, substantial shareholder of Shanghai Material Trading Co., Ltd. (600822.SH), successively announced that they planned to collect transferees to transfer the listed companies' equity in a large proportion; the transfer, once done, will lead to a change in substantial shareholders. Shanghai Material Trading also indicated in the latest announcement that it is preparing other major matters related to assets injection.
Comment: The existing cases show that Shanghai Huayi, Bailian Group and other large stated-owned groups which have several platforms play an important role in vitalizing listing platforms of Shanghai. Previously Shanghai Huayi has injected core assets worth more than 10 billion yuan to Double Coin Holdings Ltd. (600623.SH), while another two chemical listed companies under Shanghai Huayi, namely, Shanghai 3F New Materials and Shanghai Chlor-Alkali Chemical Co., Ltd. (600618.SH), are still faced with problems of restricted prospect of principal business and poor performance. Bailian Group owns pharmaceutical circulation platform Shanghai No.1 Pharmacy Co., Ltd. (600833.SH) besides comprehensive department store platform Shanghai Bailian Group Co., Ltd. (600827.SH) and production material trade platform Shanghai Material Trading Co., Ltd. (600822.SH).
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[SSN Selection]
○The State Council released several suggestions on promoting stable and sound development of foreign trade on May 9, proposing to expand pilot coverage of cross-border e-commerce.
○On May 9, the General Office of the State Council released an action plan on promoting transfer of scientific and technological achievements, and promoting the integration and transfer application of military and civil technological achievements is one of the highlights of the plan.
○A joint investigation group led by the Cyberspace Administration of China and the National Health and Family Planning Commission demands the internet giant Baidu to rectify its commercial promotion on medical information and other fields. The Second Hospital of Beijing Armed Police Corps terminates cooperation with Shanghai Claison Bio-tech Co., Ltd.
○The National Development and Reform Commission is scheduled to convene a press conference at 9:30am of May 10 to introduce strategy for the new round of revitalization of the northeast China.
○Jiangsu Changjiang Electronics Technology Co., Ltd. (600584.SH) intends to wholly control chip closed beta test (CBT) giant STATS ChipPAC with 2,655 million yuan and Semiconductor Manufacturing International Corporation (NYSE: SMI; 00981, HK) indirectly becomes the biggest shareholder of Changjiang Electronics Technology.
[Announcement Interpretation]
○Evergrande Group to invest over RMB3.6 bln to control China Calxon Group
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Zhejiang Commercial Group Co., Ltd., Hangzhou Iron ＆ Steel Group Company and Zhejiang Guoda Group Co., Ltd., three shareholders of China Calxon Group Co., Ltd. (000918.SZ), are going to transfer 952 million stocks of the company held by them to Evergrande Group at a price of 3.79 yuan per share, totally 3.6 billion yuan. Resulting from this, Evergrande Group will hold 52.78 percent equity of China Calxon Group, allowing it to become the controlling shareholder of the company and Xu Jiayin to become its actual controller. This acquisition will give rise to the tender offer obligation of Evergrande Group, but it emphasizes the tender offer dose not aim to terminate the listing position of China Calxon Group.
○Shares of Jiangsu Fasten and Greattown bought through secondary market acquisition to the 5 percent limit
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Jiangsu Fasten Company Limited (000890.SZ) disclosed that Jiangyin Yaobo Taibo Investment Center (Limited Partnership) currently has bought the company's shares through secondary market acquisition to the 5 percent limit and may further increase shareholdings in next 12 months. Investigation finds that the ordinary partner of Jiangyin Yaobo Taibo Investment Center is Jiangyin Yinmu Investment Company, whose substantial shareholder Zhongzhi Asset Management Co., Ltd. is indirectly controlled by Xie Zhikun.
Greattown Holdings Ltd. (600094.SH) announced that Jiacheng Sino-Thailand Cultural Arts Investment Management Co., Ltd. and its person acting in concert Tibet Nuoxin Asset Management Co., Ltd. increased shareholding by more than 100 million stocks during May 5 and 9, accounting for 5 percent of the company's share capital. By now, Jiacheng Sino-Thailand Cultural Arts Investment Management totally holds 10 percent equity in the company and it indicates that this move in shareholding increase aims to gain earnings resulting from stock appreciation of the listed company.
In addition, HeNan Splendor Science ＆ Technology Co., Ltd. (002296.SZ) announces that 16,933,700 shares and 1,892,200 of the company were bought by Hongta Asset Glory No.1 and No.2 under Shenzhen Hongta Asset Management Co., Ltd. during March 4 and May 6. The shares total 18,825,900 shares, accounting for 4.9982 percent of the company's total share capital.
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○Absen Optoelectronic invests and participates in sports field display company
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Shenzhen Absen Optoelectronic Co., Ltd. (300389.SZ) plans to purchase 51 percent equity of Artixium at 4.5 million U.S. dollars. Artixium is a LED display manufacturer founded and owned by European shareholders and headquartered in Hong Kong, China and mainly provides displays at sports fields, leasing displays and other products. Artixium has undertaken to provide many large European and American sports events with displays, including European Cup and various league football matches in Europe. Absen Optoelectronic states that this acquisition will lay foundations for the company to expand in sports field in the future.
○Dashang Group increases shareholding in Dashang again
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According to disclosure by Dashang Co., Ltd. (600694.SH), Dashang Group and Dashang Investment Management Co., Ltd., party acting in concert with Dashang Group, totally held 46,176,900 shares of Dashang as of May 9, accounting for 15.72 percent of the company's total share capital. The figure is 0.72 percent higher than it was on March 1. It is shown in the Q1 report that as of end March, products under Anbang Insurance have totally held 14.28 percent of Dashang's total share capital, approaching the third five percent limit through secondary market acquisition. The shareholding increase by Dashang Group and Dashang Investment Management might aim at reinforcing their status in the company.
Besides, controlling shareholder of Enn Ecological Holdings Co., Ltd. (600803.SH) proposes to increase shareholding in the company by no less than 1 percent and no more than 2 percent of its total share capital at no higher than 18 yuan per share in next six months from May 9. Controlling shareholder of Jiangsu Nonghua Intelligent Agriculture Technology Co., Ltd. (000816.SZ) further increased shareholding in the company by 7.01 million shares on May 9. Controlling shareholder of Eastern Gold Jade Co., Ltd. (600086.SH) and some of its top management totally increased shareholding in the company by 3.05 million shares from May 5-9. Controlling shareholder of Dalian Refrigeration Co., Ltd. (000530.SZ) further increased shareholding in the company by 2.65 million shares since its first shareholding increase in the company in February. Controlling shareholder of Great Wall Movie and Television Co., Ltd. (002071.SZ) further increased shareholding in the company by 2 million shares on May 9.
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○Inform Storage Equipment invests in intelligent storage through private placement
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Nanjing Inform Storage Equipment Co., Ltd. (603066.SH) proposes to raise 1.485 billion yuan by issuing around 34.96 million shares through private placement at no less than 42.46 yuan per share. The raised fund will be invested in the operation of intelligent storage and supporting projects. Jiangsu Shenghe Investment Co., Ltd., controlling shareholder of Inform Storage Equipment, proposes to subscribe no less than 40 percent of the private placement. The company's stock price closed at 45.52 yuan per share before trading suspension.
[Industry Information]
○Various governments propel construction of charging piles, industrial investment to speed up
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Shanghai municipal government recently transmitted the Supporting Measures for Encouraging Development of Charging Facilities for Electric Automobiles, a move to further offer policy support to the charging facilities for electric automobiles in Shanghai. According to interpretation released on www.shanghai.gov.cn, the amount of subsidy increases by 100 percent on the whole compared with last round of policies. Subsidy will be expanded to both construction and operation.
Comment: Various governments all beef up efforts in supporting the construction of charging piles. Boosted by both polices and market demand, industrial investment might further speed up. As to listed companies, Hangzhou Zhongheng Electric Co., Ltd. (002364.SZ) recently announced that it won the 2016 bidding for charging equipment of the State Grid Corporation of China. Institutions believe that the company's charging piles business has seen explosive growth; Longrui Sanyou New Energy Vehicles Technology Co., Ltd., a subsidiary under Beijing Bashi Media Co., Ltd. (600386.SH), is involved in the construction and operation of charging piles, and it might lead the charging business of buses and taxies in Beijing by relying on the platforms and resources owned by Beijing Public Transportation Group.
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○First World Conference on Tourism for Development to kick off
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The first World Conference on Tourism for Development will be held in Beijing on May 18. The Beijing declaration on tourism for development will be released then. The event will be jointly organized by Chinese government and the World Tourism Organization of the United Nations. It is learnt that China will fully display its tourism resources and the latest achievements in tourism development, and expound the "Belt and Road" initiatives and policies on developing the tourism industry to promote the transformation and upgrading of China's tourism industry.
Comment: The government has launched a series of policies to guide the release of potential demand for the tourism industry. Under the backdrop of consumption upgrading and the integration with Internet, the tourism industry is becoming an important driver behind economic growth. In terms of companies, China CYTS Tours Holding Co., Ltd. (600138.SH) is mainly engaged in travel agency business and is building its tourism website aoyou.com to develop O2O business. China International Travel Service Corporation Limited (601888.SH), a leading travel agency and duty-free product seller in China, is vigorously expanding overseas market.
[Trading Trends]
○Huapengfei Modern Logistics bought through four institutional seats
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The trading volume ranking list on May 9 shows that Shenzhen Huapengfei Modern Logistics Co., Ltd. (300350.SZ) was bought through four institutional seats with a total of 73,715,100 yuan, accounting for 33.33 percent of its intraday turnover.
Comment: Huapengfei Modern Logistics pocketed a net profit of 19.11 million yuan in the first quarter, representing a year-on-year growth of 238 percent. Institutions believe that the profit of Bohan Weiye (Beijing) Technology Co., Ltd. acquired by Huapengfei Modern Logistics mainly comes from the express business, and the company might expand to electronics, medical service, e-commerce and high-end manufacturing areas in the future. Public information shows that Huapengfei Modern Logistics recently received intensive institutional research, and the operation status of Bohan Weiye attracts great attention.
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