[Today's Guide]
○General Office of State Council supports general aviation, industry to see huge development potential
○Quantum communication to see emerging bullish news, NHFPC advances family doctor mode
○Kelong Fine Chemical launches private placement with high premium, Lujiazui Finance ＆ Trade Zone Development to acquire Lujiazui Financial Development
○Thaihot Group to heavily invest in real estate projects in first-tier cities, Weifang Yaxing Chemical bought through secondary market acquisition to 5 pct limit again
[SSN Focus]
○General Office of State Council supports general aviation, industry to see huge development potential
------
The Guidelines by the General Office of the State Council on Promoting Development of General Aviation Industry was officially rolled out on May 17. It is proposed to support the consumption of emerging aviation, optimize the report procedure for flights and increase efficiency of approval. By 2020, the number of general aircraft totals above 5,000, the annual flight time reaches above 2 million hours, and the economic scale of general aviation industry exceeds 1 trillion yuan. As of the end of 2015, the registered number of general aircraft aggregates only 1,874 and the annual flight time reaches only 732,000 hours in China.
Comment: Since general aviation is featured with long industrial chain, wide range of services and strong driving effect, China has decided to build it into a strategic emerging industry. Hence, the industry sees huge growth potential. Insider engaged in the general aviation of the Aviation Industry Corporation of China (AVIC) estimates that the operation time of general aviation in China will record 6 million hours in next 15 years. As to listed companies, Sichuan Haite High-Tech Co., Ltd. (002023.SZ) is engaged in the maintenance of general aviation and actively advances general aviation training business; Weihai Guangtai Airport Equipment Co., Ltd. (002111.SZ) is a leader in the ground equipment for airport. DEA General Aviation Holding Co., Ltd. (002260.SZ) proposes to raise 4.9 billion yuan through private placement and make general aviation its second principal business.
[SSN Selection]
○As indicated by Chinese Premier Li Keqiang on May 16 when meeting French Foreign Minister Jean-Marc Ayrault, China is able to maintain economic growth within a reasonable range and sound fundamentals in the long run.
○Sichuan Lomon Titanium Industry Co., Ltd. on May 17 announced a price hike of 500 yuan per ton. The sixth wave of price hike is seen in the titanium dioxide market in 2016.
○SSN learnt that the lane departure warning system might be included into national standard. Once it is implemented, the demands for intelligent security system will be pushed up in China.
○The securities margin saw a net inflow of 31.3 billion yuan last week, representing that investors' activity in transaction continued to recover slightly.
○The southbound trading under the Shanghai-Hong Kong Stock Connect program saw a net inflow of 2,327 million yuan on May 17, setting a new high in over a year.
TOP
[Industry Information]
○Quantum communication to attract attention again, industry to see emerging bullish news
------
SSN learnt that Guo Guangcan, an academician of Chinese Academy of Sciences, will deliver an address on the future development of quantum information and quantum computing at the 8th China Cloud Computing Conference to be held in Beijing on May 18-20. Huai Jinpeng, vice minister of the Ministry of Industry and Information Technology (MIIT), will attend the conference. In addition, the industry will see emerging bullish news in the second half. The first quantum communication satellite will be launched in China in July and Hangzhou-Shanghai line, the first quantum communication line for commercial use, will be established in the second half of 2016.
Comment: Essence Securities Co., Ltd. believes that the quantum communication network security is facing urgent demands in military battles, armed forces, public security and financial industries. It is expected that the state will increase investment in quantum communication this year. As to listed companies, Hubei Kaile Science and Technology Co., Ltd. (600260.SH) has absolute advantage in data chain quantum secure communication. Huagong Tech Company Limited (000988.SZ) indicates on interactive platform that it has started practical research of quantum communication engineering.
○NHFPC advances family doctor mode, mobile medical service provides important support
------
SSN learnt that the National Health and Family Planning Commission (NHFPC) will roll out new polices to further advance the family doctor system, and gradually realize the goal of hierarchical medical system. The NHFPC in last November proposed that by 2020, various places should strive to enable every family to have a qualified doctor under contract, and establish an electronic health file for every resident. Through the family doctor mode, the quality resource in big hospitals can be truly shared by grass-root people.
Comment: Experts believe that technologies like electronic medical history, Internet-based health management platform and mobile medical service might provide important support to family doctors. As to listed companies, Wonders Information Co., Ltd. (300168.SZ) and Winning Health Technology Group Co., Ltd. (300253.SZ) have matured arrangement in medical informatization; Shanghai Yanhua Smartech Group Co., Ltd. (002178.SZ) and Enjoyor Co., Ltd. (300020.SZ) have advantages in electronic medical history; Baida Group Co., Ltd. (600865.SH) and Tonghua Dongbao Pharmaceutical Co., Ltd. (600867.SH) have made arrangement in private health management.
TOP
[Announcement Interpretation]
○Kelong Fine Chemical acquires HOZO Building Materials through private placement with high premium
------
Liaoning Kelong Fine Chemical, Inc. (300405.SZ) proposes to acquire 100 percent shares of Sichuan HOZO Building Materials Co., Ltd. with 230 million yuan. The transaction will be done by issuing shares at 44.39 yuan per share and paying in cash. The company also proposes to raise a supporting fund of 190 million yuan and the offering price will be no less than 28 yuan per share. The company's stock price recorded 29.69 yuan per share before trading suspension, which is nearly 50 percent lower than the offering price.
HOZO Building Materials is mainly engaged in production and sales of concrete admixture, its industry is in the middle and downstream of polycarboxylate superplasticizer industrial chain. HOZO Building Materials promises that its net profit of 2016 to 2019 will be no less than 26 million yuan, 60 million yuan and 103 million yuan.
○Lujiazui Finance ＆ Trade Zone Development to acquire Lujiazui Financial Development, pushing "real estate finance" strategy
------
Shanghai Lujiazui Finance ＆ Trade Zone Development Co., Ltd. (600663.SH) proposes to acquire the 100 percent equity of Lujiazui Financial Development Co., Ltd., a financial and investment platform under Lujiazui Group Co., Ltd., with 10,931 million yuan in cash to promote the double wheel of "real estate finance". Lujiazui Group is the controlling shareholder of Lujiazui Finance ＆ Trade Zone Development. Lujiazui Financial Development now is holding Aijian Securities Co., Ltd. and Lujiazui International Trust Co., Ltd.; it also jointly holds the Cathay Lujiazui Life Insurance with others. Lujiazui Financial Development has three financial licenses, and in 2014 and 2015, it realized net profit of 303 million yuan and 293 million yuan respectively.
TOP
○Thaihot Group to raise RMB9.8 bln through private placement to invest in real estate projects in Beijing and Shenzhen
------
Thaihot Group Co., Ltd. (000732.SZ) proposes to issue shares with 18.3 yuan per share as the bottom price to its controlling shareholder Thaihot Investment Management Co., Ltd. and others in order to raise 9.8 billion yuan through private placement. The raised fund will be invested in various real estate projects in Beijing and Shenzhen, and will also be used for repayment. Thaihot Investment Management will subscribe 10 to 30 percent in the private placement. The stock price of the listed company was 19.05 yuan before trading suspension.
○Great Wall Assets Management buys shares of Weifang Yaxing Chemical through secondary market acquisition to 5 pct limit again
------
Weifang Yaxing Chemical Co., Ltd. (600319.SH) announces that Shenzhen Great Wall Assets Management Co., Ltd. bought 15,779,500 shares of the listed company from May 9 to 17, accounting for 5 percent of the total equity. The average buying price is 8.41 yuan per share. After interest right alternation, Great Wall Assets Management holds 10 percent of the listed company's equity, finishing the placard acquisition for the second time.
Comment: Based on previous operations, Great Wall Assets Management may influence the future restructuring of the listed company.
○Huawu Brake to acquire aviation equipment manufacturing enterprise with RMB300 mln
------
Jiangxi Huawu Brake Co., Ltd. (300095.SZ) proposes to acquire the 100 percent equity of Sichuan Ande Tech. Co., Ltd. with 300 million yuan in cash. Ande Tech. is mainly engaged in production and service of engine crank cast and thrust reverser, and design, development, production and service of aviation equipment, and it provides supporting services for large military enterprises. Based on commitment, Ande Tech. will accumulatively realize a net profit of 99.75 million yuan from 2016 to 2018.
○Iflytek to acquire Lezhixing Software to expand investment in education information based industry
------
Iflytek Co., Ltd. (002230.SZ) proposes to acquire the 100 percent equity of Beijing Lezhixing Software Co., Ltd. with 496 million yuan, with 143 million yuan in cash. Meanwhile, the company proposes to issue 12,942,000 shares with 17.26 yuan for each to seven persons of Lezhixing Software including Yang Jun through private placement to pay the equity. Additionally, the company will also issue shares at 27.26 yuan for each through private placement to raise the supporting fund of 300 million yuan.
Lezhixing Software is mainly engaged in providing comprehensive solutions based on education information for middle and primary schools and education administrators.
○Controlling shareholder repurchased massive shares of Bright Oceans Inter-Telecom
------
Bright Oceans Corporation, the controlling shareholder of Bright Oceans Inter-Telecom Corporation (600289.SH), on May 16 repurchased 11,717,000 shares of the listed company through bulk trade, accounting for over 2 percent of the total equity. Meanwhile, the company will launch employee shareholding plan. Jiayi Investment Management Co., Ltd., substantial shareholder of CRED Holding Co., Ltd. (600890.SH), increased 2.57 million shareholdings in the listed company on May 16 and 17. The controlling shareholder and some senior managers of Xuzhou Handler Special Vehicle Co., Ltd. (300201.SZ) increased 2.85 million shareholdings in the listed company on May 16 and 17. The controlling shareholder of Yihua Lifestyle Technology Co., Ltd. (600978.SH) increased 2.71 million shareholdings in the listed company on May 17.
[Trading Trends]
○Kingteller Technology bought through three institutional seats
------
The trading volume ranking list on May 17 shows that Guangzhou Kingteller Technology Co., Ltd. (002177.SZ) was bought through three institutional seats with a total of 162 million yuan, accounting for 39.4 percent of its intraday turnover. Another institutional seat sold the shares of 5,382,500 yuan.
Comment: The company was investigated by institutions one by one in April due to block chain concept, and it also indicated that it organized a team to study block chain technology. The media report that crowd-funding project DAO of block chain will become the largest crowd-funding project since the history. This project started from May 1, and raised nearly 109 million U.S. dollars in a short 15 days, showing that such crowd-funding mode is increasingly accepted.
◆Victory Giant Technology (HuiZhou) Co., Ltd. (300476.SZ) was bought through three institutional seats with a total of 48.67 million yuan, accounting for 5 percent of its intraday turnover. Institutions believe that new automotive electronics products of the company will see explosive development. Through advanced deployment in green manufacturing, the company may be deeply involved in PCB sewage reclamation project, with huge space.
[Trading Alarms]
○E-techstar to issue new shares on May 18
------
Beijing E-techstar Co., Ltd. (300513.SZ) will issue new shares at 11.73 yuan per share, with a P/E ratio of 23 times. The upper limit for subscription is 19,000 shares. The company mainly provides intelligent controller integration service for power grid enterprises.
TOP
○General Office of State Council supports general aviation, industry to see huge development potential
○Quantum communication to see emerging bullish news, NHFPC advances family doctor mode
○Kelong Fine Chemical launches private placement with high premium, Lujiazui Finance ＆ Trade Zone Development to acquire Lujiazui Financial Development
○Thaihot Group to heavily invest in real estate projects in first-tier cities, Weifang Yaxing Chemical bought through secondary market acquisition to 5 pct limit again
[SSN Focus]
○General Office of State Council supports general aviation, industry to see huge development potential
------
The Guidelines by the General Office of the State Council on Promoting Development of General Aviation Industry was officially rolled out on May 17. It is proposed to support the consumption of emerging aviation, optimize the report procedure for flights and increase efficiency of approval. By 2020, the number of general aircraft totals above 5,000, the annual flight time reaches above 2 million hours, and the economic scale of general aviation industry exceeds 1 trillion yuan. As of the end of 2015, the registered number of general aircraft aggregates only 1,874 and the annual flight time reaches only 732,000 hours in China.
Comment: Since general aviation is featured with long industrial chain, wide range of services and strong driving effect, China has decided to build it into a strategic emerging industry. Hence, the industry sees huge growth potential. Insider engaged in the general aviation of the Aviation Industry Corporation of China (AVIC) estimates that the operation time of general aviation in China will record 6 million hours in next 15 years. As to listed companies, Sichuan Haite High-Tech Co., Ltd. (002023.SZ) is engaged in the maintenance of general aviation and actively advances general aviation training business; Weihai Guangtai Airport Equipment Co., Ltd. (002111.SZ) is a leader in the ground equipment for airport. DEA General Aviation Holding Co., Ltd. (002260.SZ) proposes to raise 4.9 billion yuan through private placement and make general aviation its second principal business.
[SSN Selection]
○As indicated by Chinese Premier Li Keqiang on May 16 when meeting French Foreign Minister Jean-Marc Ayrault, China is able to maintain economic growth within a reasonable range and sound fundamentals in the long run.
○Sichuan Lomon Titanium Industry Co., Ltd. on May 17 announced a price hike of 500 yuan per ton. The sixth wave of price hike is seen in the titanium dioxide market in 2016.
○SSN learnt that the lane departure warning system might be included into national standard. Once it is implemented, the demands for intelligent security system will be pushed up in China.
○The securities margin saw a net inflow of 31.3 billion yuan last week, representing that investors' activity in transaction continued to recover slightly.
○The southbound trading under the Shanghai-Hong Kong Stock Connect program saw a net inflow of 2,327 million yuan on May 17, setting a new high in over a year.
TOP
[Industry Information]
○Quantum communication to attract attention again, industry to see emerging bullish news
------
SSN learnt that Guo Guangcan, an academician of Chinese Academy of Sciences, will deliver an address on the future development of quantum information and quantum computing at the 8th China Cloud Computing Conference to be held in Beijing on May 18-20. Huai Jinpeng, vice minister of the Ministry of Industry and Information Technology (MIIT), will attend the conference. In addition, the industry will see emerging bullish news in the second half. The first quantum communication satellite will be launched in China in July and Hangzhou-Shanghai line, the first quantum communication line for commercial use, will be established in the second half of 2016.
Comment: Essence Securities Co., Ltd. believes that the quantum communication network security is facing urgent demands in military battles, armed forces, public security and financial industries. It is expected that the state will increase investment in quantum communication this year. As to listed companies, Hubei Kaile Science and Technology Co., Ltd. (600260.SH) has absolute advantage in data chain quantum secure communication. Huagong Tech Company Limited (000988.SZ) indicates on interactive platform that it has started practical research of quantum communication engineering.
○NHFPC advances family doctor mode, mobile medical service provides important support
------
SSN learnt that the National Health and Family Planning Commission (NHFPC) will roll out new polices to further advance the family doctor system, and gradually realize the goal of hierarchical medical system. The NHFPC in last November proposed that by 2020, various places should strive to enable every family to have a qualified doctor under contract, and establish an electronic health file for every resident. Through the family doctor mode, the quality resource in big hospitals can be truly shared by grass-root people.
Comment: Experts believe that technologies like electronic medical history, Internet-based health management platform and mobile medical service might provide important support to family doctors. As to listed companies, Wonders Information Co., Ltd. (300168.SZ) and Winning Health Technology Group Co., Ltd. (300253.SZ) have matured arrangement in medical informatization; Shanghai Yanhua Smartech Group Co., Ltd. (002178.SZ) and Enjoyor Co., Ltd. (300020.SZ) have advantages in electronic medical history; Baida Group Co., Ltd. (600865.SH) and Tonghua Dongbao Pharmaceutical Co., Ltd. (600867.SH) have made arrangement in private health management.
TOP
[Announcement Interpretation]
○Kelong Fine Chemical acquires HOZO Building Materials through private placement with high premium
------
Liaoning Kelong Fine Chemical, Inc. (300405.SZ) proposes to acquire 100 percent shares of Sichuan HOZO Building Materials Co., Ltd. with 230 million yuan. The transaction will be done by issuing shares at 44.39 yuan per share and paying in cash. The company also proposes to raise a supporting fund of 190 million yuan and the offering price will be no less than 28 yuan per share. The company's stock price recorded 29.69 yuan per share before trading suspension, which is nearly 50 percent lower than the offering price.
HOZO Building Materials is mainly engaged in production and sales of concrete admixture, its industry is in the middle and downstream of polycarboxylate superplasticizer industrial chain. HOZO Building Materials promises that its net profit of 2016 to 2019 will be no less than 26 million yuan, 60 million yuan and 103 million yuan.
○Lujiazui Finance ＆ Trade Zone Development to acquire Lujiazui Financial Development, pushing "real estate finance" strategy
------
Shanghai Lujiazui Finance ＆ Trade Zone Development Co., Ltd. (600663.SH) proposes to acquire the 100 percent equity of Lujiazui Financial Development Co., Ltd., a financial and investment platform under Lujiazui Group Co., Ltd., with 10,931 million yuan in cash to promote the double wheel of "real estate finance". Lujiazui Group is the controlling shareholder of Lujiazui Finance ＆ Trade Zone Development. Lujiazui Financial Development now is holding Aijian Securities Co., Ltd. and Lujiazui International Trust Co., Ltd.; it also jointly holds the Cathay Lujiazui Life Insurance with others. Lujiazui Financial Development has three financial licenses, and in 2014 and 2015, it realized net profit of 303 million yuan and 293 million yuan respectively.
TOP
○Thaihot Group to raise RMB9.8 bln through private placement to invest in real estate projects in Beijing and Shenzhen
------
Thaihot Group Co., Ltd. (000732.SZ) proposes to issue shares with 18.3 yuan per share as the bottom price to its controlling shareholder Thaihot Investment Management Co., Ltd. and others in order to raise 9.8 billion yuan through private placement. The raised fund will be invested in various real estate projects in Beijing and Shenzhen, and will also be used for repayment. Thaihot Investment Management will subscribe 10 to 30 percent in the private placement. The stock price of the listed company was 19.05 yuan before trading suspension.
○Great Wall Assets Management buys shares of Weifang Yaxing Chemical through secondary market acquisition to 5 pct limit again
------
Weifang Yaxing Chemical Co., Ltd. (600319.SH) announces that Shenzhen Great Wall Assets Management Co., Ltd. bought 15,779,500 shares of the listed company from May 9 to 17, accounting for 5 percent of the total equity. The average buying price is 8.41 yuan per share. After interest right alternation, Great Wall Assets Management holds 10 percent of the listed company's equity, finishing the placard acquisition for the second time.
Comment: Based on previous operations, Great Wall Assets Management may influence the future restructuring of the listed company.
○Huawu Brake to acquire aviation equipment manufacturing enterprise with RMB300 mln
------
Jiangxi Huawu Brake Co., Ltd. (300095.SZ) proposes to acquire the 100 percent equity of Sichuan Ande Tech. Co., Ltd. with 300 million yuan in cash. Ande Tech. is mainly engaged in production and service of engine crank cast and thrust reverser, and design, development, production and service of aviation equipment, and it provides supporting services for large military enterprises. Based on commitment, Ande Tech. will accumulatively realize a net profit of 99.75 million yuan from 2016 to 2018.
○Iflytek to acquire Lezhixing Software to expand investment in education information based industry
------
Iflytek Co., Ltd. (002230.SZ) proposes to acquire the 100 percent equity of Beijing Lezhixing Software Co., Ltd. with 496 million yuan, with 143 million yuan in cash. Meanwhile, the company proposes to issue 12,942,000 shares with 17.26 yuan for each to seven persons of Lezhixing Software including Yang Jun through private placement to pay the equity. Additionally, the company will also issue shares at 27.26 yuan for each through private placement to raise the supporting fund of 300 million yuan.
Lezhixing Software is mainly engaged in providing comprehensive solutions based on education information for middle and primary schools and education administrators.
○Controlling shareholder repurchased massive shares of Bright Oceans Inter-Telecom
------
Bright Oceans Corporation, the controlling shareholder of Bright Oceans Inter-Telecom Corporation (600289.SH), on May 16 repurchased 11,717,000 shares of the listed company through bulk trade, accounting for over 2 percent of the total equity. Meanwhile, the company will launch employee shareholding plan. Jiayi Investment Management Co., Ltd., substantial shareholder of CRED Holding Co., Ltd. (600890.SH), increased 2.57 million shareholdings in the listed company on May 16 and 17. The controlling shareholder and some senior managers of Xuzhou Handler Special Vehicle Co., Ltd. (300201.SZ) increased 2.85 million shareholdings in the listed company on May 16 and 17. The controlling shareholder of Yihua Lifestyle Technology Co., Ltd. (600978.SH) increased 2.71 million shareholdings in the listed company on May 17.
[Trading Trends]
○Kingteller Technology bought through three institutional seats
------
The trading volume ranking list on May 17 shows that Guangzhou Kingteller Technology Co., Ltd. (002177.SZ) was bought through three institutional seats with a total of 162 million yuan, accounting for 39.4 percent of its intraday turnover. Another institutional seat sold the shares of 5,382,500 yuan.
Comment: The company was investigated by institutions one by one in April due to block chain concept, and it also indicated that it organized a team to study block chain technology. The media report that crowd-funding project DAO of block chain will become the largest crowd-funding project since the history. This project started from May 1, and raised nearly 109 million U.S. dollars in a short 15 days, showing that such crowd-funding mode is increasingly accepted.
◆Victory Giant Technology (HuiZhou) Co., Ltd. (300476.SZ) was bought through three institutional seats with a total of 48.67 million yuan, accounting for 5 percent of its intraday turnover. Institutions believe that new automotive electronics products of the company will see explosive development. Through advanced deployment in green manufacturing, the company may be deeply involved in PCB sewage reclamation project, with huge space.
[Trading Alarms]
○E-techstar to issue new shares on May 18
------
Beijing E-techstar Co., Ltd. (300513.SZ) will issue new shares at 11.73 yuan per share, with a P/E ratio of 23 times. The upper limit for subscription is 19,000 shares. The company mainly provides intelligent controller integration service for power grid enterprises.
TOP
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