[Today's Guide]
> Nine mines to constantly reduce output, molybdenum price likely to rebound
> 13th Five-Year Plan for military construction issued, information-oriented construction to speed up
> Total installed capacity of energy storage expected to surge significantly and achieve market size with trillions of yuan
> Chuying Agro-Pastoral cooperates with Shanxian County Snacks to expand sales, Phoenix Publishing ＆ Media and other firms see shareholding increase
[SSN Focus]
○Nine mines to constantly reduce output, molybdenum price likely to rebound
------
Nine leading enterprises in China mainly engaged in molybdenum mines issued a joint initiative on May 12, which pointed out that molybdenum price is lower than average production cost in the industry, and they unanimously agree to continue to reduce the output. The concentrated molybdenum production was lowered by 9.18 percent last year, and will be constantly reduced by 10 percent this year. Enterprises will be encouraged to participate the national molybdenum reserve and reduce their sales. Based on data of China Tungsten Industry Association, current price of the concentrated molybdenum increases about 5 percent compared to that of last week, and mining enterprises are caught into difficult operations.
Comment: China's molybdenum reserve accounts for around 40 percent of the total amount worldwide. In the past years, molybdenum companies listed in the A-share market successively carried out horizontal merging, and an industrial alliance has been established this time, which make domestic molybdenum enterprises more likely to improve their speaking right of pricing constantly. Jinduicheng Molybdenum Co., Ltd. (601958.SZ) and Jinzhou New China Dragon Molybdenum Co., Ltd. (603399.SZ) have advantages in the whole industrial chain from molybdenum selecting and further processing. Jianxin Mining Co., Ltd. (000688.SZ) has already gained a promise from its actual controller that Inner Mongolia Zhongxi Mining Co., Ltd., mainly engaged in concentrated molybdenum powder, will be injected into the listed company before the end of this year.
[SSN Selection]
○The General Office of the State Council on May 12 issued the Implementation Opinion that every effort will be made to build a series of high quality demonstration bases for mass entrepreneurship and innovation before the end of 2018.
○The Ministry of Agriculture website on May 12 issued Three-year Action Implementation Scheme for Internet Modern Agriculture, proposing six major projects, such as Internet of Things and e-commerce of agriculture.
○Henan province recently issued Several Policies and Measures on Optimizing Enterprise Financing Service, and proposed that enterprises in traditional industries, such as coal and steel, altering industrial identity is an effective way to gain bank loans.
○Shenzhen Stock Exchange on May 12 issued a concerned letter to Hengxin Mobile Business Co., Ltd. (300081.SZ), requiring the company to provide specification on its altering the industrial classification of merging target.
○CITIC Guoan Information Industry Co., Ltd. (000839.SZ) announced the investment progress on privatizing Qihoo 360 Technology Co., Ltd.; based on foreign media, the buyer will delay the acquisition proposal on YY Inc.
TOP
[Industry Information]
○13th Five-Year Plan for military construction issued, information-oriented construction to speed up
------
The Central Military Commission recently issued "13th Five-Year Plan" Guideline on Military Construction Development. It proposed to basically realize the mechanization for troops by 2020, achieve great progress of information-oriented construction, and build up modern military systems with Chinese features, which can win the information-based war and effectively perform the tasks.
Comment: Reform work meeting of the Central Military Commission held in last November proposed to build up modern military systems with Chinese features, which can win the information-based war and effectively perform the tasks. Institutions point out that issuance of military reform scheme will certainly accelerate and push the information-oriented process of troops, and bring in new investment opportunities of military ＆ industrial communication. Among listed companies, Glarun Technology Co., Ltd. (600562.SH) is a leading magnate in radar industry; and Jiangsu Leike Defense Technology Co., Ltd. (002413.SZ) successively steps into various fields, such as radar, BEIDOU satellite navigation system, high performance embedded processor and etc., through merging and acquisition.
TOP
○Total installed capacity of energy storage expected to surge significantly and achieve market size with trillions of yuan
------
The Energy Storage China 2016 held on May 11 released the 2016 white paper on the research of the energy storage industry. The white paper proposes to make the total installed capacity of energy storage to reach 24.2GW in 2020, and the cumulative total of installed capacity of energy storage was 105.5MW in the end of last year. Officials from the National Energy Administration stressed the importance of energy storage in the construction of modern energy system, and set key tasks in technology research and development, application and industrialization.
Comment: Energy storage, as an important support for energy Internet, has been included as one of the action plans in the reform and innovation in energy technology. Institutes estimate that with more policies on further subsidies for energy storage, the energy storage market will reach 100 billion yuan by 2020. As for companies, leading energy storage companies, such as Zhejiang Narada Power Source Co., Ltd. (300068.SZ) and Shandong Sacred Sun Power Sources Co., Ltd. (002580.SZ), are expected to see opportunities to expand. Sungrow Power Supply Co., Ltd. (300274.SZ) is promoting the development of its lithium battery energy storage business through cooperation with Samsung SDI.
TOP
[Announcement Interpretation]
○Chuying Agro-Pastoral cooperates with Shanxian County Snacks to expand sales
------
Chuying Agro-Pastoral Group Co., Ltd. (002477.SZ) signs strategic cooperation agreement with Shanxian County Snacks Group Co., Ltd., according to which Chuying Agro-Pastoral will provide raw materials, prepackaged food and special supply products to the latter. Shanxian County Snacks operates nearly 20,000 stores across the country and achieves annual operating revenues of more than 5 billion yuan. At present, it is developing its products to be branding, standard and industrialized. The cooperation of the two companies is conducive to intensify brand effect of food safety and expand their market sales.
○Phoenix Publishing ＆ Media and other firms see shareholding increase
------
Controlling shareholder of Jiangsu Phoenix Publishing ＆ Media Corporation Limited (601928.SH) increased his shareholding in the company by 3.72 million shares on May 12. Director, supervisor and senior management of Shenzhen Sunshine Laser ＆ Electronics Technology Co., Ltd. (300227.SZ) increased shareholding by 1.42 million shares. Actual controller of Yotrio Group Co., Ltd. (002489.SZ) continued to bought 7.5 million shares of the company during May 9-11.
○Tianwei Baobian Electric to acquire assets at RMB1.6 bln through private placement
------
Baoding Tianwei Baobian Electric Co., Ltd. (600550.SH) plans to raise 1,601 million yuan by issuing 267 million shares at a price of 6 yuan per share through private placement to buy 79.97 percent equity of Yunnan Transformer Electric Co., Ltd., pay loans of financial institution and supplement working capitals. The company's actual controller China South Industries Group Corporation (CSGC) will buy the stocks with 1,125 million yuan in cash and its related parities Shanghai Changwei Equity Investment Partnership (Limited Partnership) and South Industry Assets Management Co., Ltd. will purchase the stocks with their 54.97 percent and 25 percent equity in Transformer Electric.
Transformer Electric was a key enterprises authorized by the Ministry of Machine-Building Industry to manufacture transformers with voltage class at and below 220KV and other transformers. Its net profit recorded 38,145,300 yuan in 2015 and 9,843,500 yuan in the first quarter of 2016. This deal will effectively tackle the problem of horizontal competition and related party transaction and achieve unified operation of power transmission and transformation business under CSGC.
○Kingswood Printing Ink to raise RMB600 mln to expand main business
------
Suzhou Kingswood Printing Ink Co., Ltd. (300192.SZ) plans to raise about 600 million yuan through private placement at a price based on that in the first of issuing date to invest in ultraviolet light polymerization (UV) printing ink project, ink supply system project and e-commerce platform project. The above-said fundraising projects are centering on the company's principal business printing ink and will help the company scale up the operation and improve product structure once implemented.
[Trading Trends]
○Shuanglin Auto Parts bought through four institutional seats
------
The trading volume ranking list on May 12 shows that Ningbo Shuanglin Auto Parts Co., Ltd. (300100.SZ) was bought through four institutional seats with a total of 85,250,500 yuan, accounting for 22.07 percent of its intraday turnover.
Comment: The company previously announced that it intended to invest 100 million yuan in automatic driving technology. Institutes believe that the company is carrying out strategic planning step by step and is expected to conduct a series of moves in the future. In addition, its subsidiary Shandong Deyang Electronic Technology Co., Ltd. provides powertrain system to Zotye Zhidou, Kandi Panda and other electric vehicles, which is expected to contribute 50 million yuan of net profits in a year.
TOP
> Nine mines to constantly reduce output, molybdenum price likely to rebound
> 13th Five-Year Plan for military construction issued, information-oriented construction to speed up
> Total installed capacity of energy storage expected to surge significantly and achieve market size with trillions of yuan
> Chuying Agro-Pastoral cooperates with Shanxian County Snacks to expand sales, Phoenix Publishing ＆ Media and other firms see shareholding increase
[SSN Focus]
○Nine mines to constantly reduce output, molybdenum price likely to rebound
------
Nine leading enterprises in China mainly engaged in molybdenum mines issued a joint initiative on May 12, which pointed out that molybdenum price is lower than average production cost in the industry, and they unanimously agree to continue to reduce the output. The concentrated molybdenum production was lowered by 9.18 percent last year, and will be constantly reduced by 10 percent this year. Enterprises will be encouraged to participate the national molybdenum reserve and reduce their sales. Based on data of China Tungsten Industry Association, current price of the concentrated molybdenum increases about 5 percent compared to that of last week, and mining enterprises are caught into difficult operations.
Comment: China's molybdenum reserve accounts for around 40 percent of the total amount worldwide. In the past years, molybdenum companies listed in the A-share market successively carried out horizontal merging, and an industrial alliance has been established this time, which make domestic molybdenum enterprises more likely to improve their speaking right of pricing constantly. Jinduicheng Molybdenum Co., Ltd. (601958.SZ) and Jinzhou New China Dragon Molybdenum Co., Ltd. (603399.SZ) have advantages in the whole industrial chain from molybdenum selecting and further processing. Jianxin Mining Co., Ltd. (000688.SZ) has already gained a promise from its actual controller that Inner Mongolia Zhongxi Mining Co., Ltd., mainly engaged in concentrated molybdenum powder, will be injected into the listed company before the end of this year.
[SSN Selection]
○The General Office of the State Council on May 12 issued the Implementation Opinion that every effort will be made to build a series of high quality demonstration bases for mass entrepreneurship and innovation before the end of 2018.
○The Ministry of Agriculture website on May 12 issued Three-year Action Implementation Scheme for Internet Modern Agriculture, proposing six major projects, such as Internet of Things and e-commerce of agriculture.
○Henan province recently issued Several Policies and Measures on Optimizing Enterprise Financing Service, and proposed that enterprises in traditional industries, such as coal and steel, altering industrial identity is an effective way to gain bank loans.
○Shenzhen Stock Exchange on May 12 issued a concerned letter to Hengxin Mobile Business Co., Ltd. (300081.SZ), requiring the company to provide specification on its altering the industrial classification of merging target.
○CITIC Guoan Information Industry Co., Ltd. (000839.SZ) announced the investment progress on privatizing Qihoo 360 Technology Co., Ltd.; based on foreign media, the buyer will delay the acquisition proposal on YY Inc.
TOP
[Industry Information]
○13th Five-Year Plan for military construction issued, information-oriented construction to speed up
------
The Central Military Commission recently issued "13th Five-Year Plan" Guideline on Military Construction Development. It proposed to basically realize the mechanization for troops by 2020, achieve great progress of information-oriented construction, and build up modern military systems with Chinese features, which can win the information-based war and effectively perform the tasks.
Comment: Reform work meeting of the Central Military Commission held in last November proposed to build up modern military systems with Chinese features, which can win the information-based war and effectively perform the tasks. Institutions point out that issuance of military reform scheme will certainly accelerate and push the information-oriented process of troops, and bring in new investment opportunities of military ＆ industrial communication. Among listed companies, Glarun Technology Co., Ltd. (600562.SH) is a leading magnate in radar industry; and Jiangsu Leike Defense Technology Co., Ltd. (002413.SZ) successively steps into various fields, such as radar, BEIDOU satellite navigation system, high performance embedded processor and etc., through merging and acquisition.
TOP
○Total installed capacity of energy storage expected to surge significantly and achieve market size with trillions of yuan
------
The Energy Storage China 2016 held on May 11 released the 2016 white paper on the research of the energy storage industry. The white paper proposes to make the total installed capacity of energy storage to reach 24.2GW in 2020, and the cumulative total of installed capacity of energy storage was 105.5MW in the end of last year. Officials from the National Energy Administration stressed the importance of energy storage in the construction of modern energy system, and set key tasks in technology research and development, application and industrialization.
Comment: Energy storage, as an important support for energy Internet, has been included as one of the action plans in the reform and innovation in energy technology. Institutes estimate that with more policies on further subsidies for energy storage, the energy storage market will reach 100 billion yuan by 2020. As for companies, leading energy storage companies, such as Zhejiang Narada Power Source Co., Ltd. (300068.SZ) and Shandong Sacred Sun Power Sources Co., Ltd. (002580.SZ), are expected to see opportunities to expand. Sungrow Power Supply Co., Ltd. (300274.SZ) is promoting the development of its lithium battery energy storage business through cooperation with Samsung SDI.
TOP
[Announcement Interpretation]
○Chuying Agro-Pastoral cooperates with Shanxian County Snacks to expand sales
------
Chuying Agro-Pastoral Group Co., Ltd. (002477.SZ) signs strategic cooperation agreement with Shanxian County Snacks Group Co., Ltd., according to which Chuying Agro-Pastoral will provide raw materials, prepackaged food and special supply products to the latter. Shanxian County Snacks operates nearly 20,000 stores across the country and achieves annual operating revenues of more than 5 billion yuan. At present, it is developing its products to be branding, standard and industrialized. The cooperation of the two companies is conducive to intensify brand effect of food safety and expand their market sales.
○Phoenix Publishing ＆ Media and other firms see shareholding increase
------
Controlling shareholder of Jiangsu Phoenix Publishing ＆ Media Corporation Limited (601928.SH) increased his shareholding in the company by 3.72 million shares on May 12. Director, supervisor and senior management of Shenzhen Sunshine Laser ＆ Electronics Technology Co., Ltd. (300227.SZ) increased shareholding by 1.42 million shares. Actual controller of Yotrio Group Co., Ltd. (002489.SZ) continued to bought 7.5 million shares of the company during May 9-11.
○Tianwei Baobian Electric to acquire assets at RMB1.6 bln through private placement
------
Baoding Tianwei Baobian Electric Co., Ltd. (600550.SH) plans to raise 1,601 million yuan by issuing 267 million shares at a price of 6 yuan per share through private placement to buy 79.97 percent equity of Yunnan Transformer Electric Co., Ltd., pay loans of financial institution and supplement working capitals. The company's actual controller China South Industries Group Corporation (CSGC) will buy the stocks with 1,125 million yuan in cash and its related parities Shanghai Changwei Equity Investment Partnership (Limited Partnership) and South Industry Assets Management Co., Ltd. will purchase the stocks with their 54.97 percent and 25 percent equity in Transformer Electric.
Transformer Electric was a key enterprises authorized by the Ministry of Machine-Building Industry to manufacture transformers with voltage class at and below 220KV and other transformers. Its net profit recorded 38,145,300 yuan in 2015 and 9,843,500 yuan in the first quarter of 2016. This deal will effectively tackle the problem of horizontal competition and related party transaction and achieve unified operation of power transmission and transformation business under CSGC.
○Kingswood Printing Ink to raise RMB600 mln to expand main business
------
Suzhou Kingswood Printing Ink Co., Ltd. (300192.SZ) plans to raise about 600 million yuan through private placement at a price based on that in the first of issuing date to invest in ultraviolet light polymerization (UV) printing ink project, ink supply system project and e-commerce platform project. The above-said fundraising projects are centering on the company's principal business printing ink and will help the company scale up the operation and improve product structure once implemented.
[Trading Trends]
○Shuanglin Auto Parts bought through four institutional seats
------
The trading volume ranking list on May 12 shows that Ningbo Shuanglin Auto Parts Co., Ltd. (300100.SZ) was bought through four institutional seats with a total of 85,250,500 yuan, accounting for 22.07 percent of its intraday turnover.
Comment: The company previously announced that it intended to invest 100 million yuan in automatic driving technology. Institutes believe that the company is carrying out strategic planning step by step and is expected to conduct a series of moves in the future. In addition, its subsidiary Shandong Deyang Electronic Technology Co., Ltd. provides powertrain system to Zotye Zhidou, Kandi Panda and other electric vehicles, which is expected to contribute 50 million yuan of net profits in a year.
TOP
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