[Today's Guide]
○ Hydrogen cell bus sees massive orders, market-orientation process likely to accelerate
○ Artificial intelligence action scheme issued, national BMS standard to launch
○ Royal Group expands to Internet industry, Orbita Control Engineering acquires two geographic information big date companies
○ Hailun Piano enters into license agreement with Walt Disney, Chimin Pharmaceutical acquires European IVD company
[SSN Focus]
○Hydrogen cell bus sees massive orders, market-orientation process likely to accelerate
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Beiqi Foton Motor Co., Ltd. (600166.SH) announced in the evening of May 23 that it has achieved 100 orders for electric buses based on 8.5m hydrogen cell. The company expected to delivery 60 buses before the end of this year, with 40 ones before the end of next year. Foton Motor indicated that it is the largest order to this respect in the world now. The smooth performance will promote the industrial market-orientation process.
Comment: Hydrogen cell features in high energy conversion efficiency, quick fuel injection, zero emission and etc., attracting much policy attention of industrial planning and subsidy scheme related to new energy automobile. Besides Beiqi Foton Motor, automobile enterprises including Zhengzhou Yutong Group Co., Ltd. and SAIC Motor Corporation Limited (600104.SH) are also carrying out the R＆D of hydrogen cell, and planning to build up hydrogen refueling station. Among A-share listed companies, Zhangjiagang Furui Special Equipment Co., Ltd. (300228.SZ) established holding subsidiary Jiangsu Hydrogen ＆ Solar Energy Co., Ltd., focusing on R＆D of hydrogen storage technology; Lanzhou Great Wall Electrical Co., Ltd. (600192.SH) acquired shareholdings in fuel cell enterprise named as Dalian Sunrise Power Co., Ltd.; Shanghai TL Chemical Co., Ltd. jointly operated by Shanghai Tongji Science ＆ Technology Industrial Co., Ltd. (600846.SH) involved in researches related to proton exchange membrane.
[TOP]
[SSN Selection]
○Special pilots for management reform on major national science and technology have been implemented in broadband mobile communication and transgene, according to Minister of Science and Technology Wan Gang on May 23.
○Eight ministries recently work together to issue Guidelines on Promoting Electric Power
Replacing Other Energies, proposing to popularize equipment like electric boiler, electro car and energy storage device.
○China Insurance Regulatory Commission recently issued a notice to ban illegal sales of overseas insurance products, with the most intensified policy strength.
○Shanxi province on May 23 issued the third wave of detailed implementation rules to promote coal supply side reform, and Shanxi Coking Coal Group Co., Ltd. is selected as the pilot to restructure state-owned capital investment company.
○Soozhu.com data on May 23 shows that average pig price increased to a historic high 20.48 yuan in China. Rainstorm in South China caused pig farms to reduce the sales.
[Industrial Information]
○Artificial intelligence action scheme issued, RMB100 bln market likely to initiate
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The website of National Development and Reform Commission on May 23 shows that Ministry of Science and Technology, Ministry of Industry and Information Technology and Office of the Central Leading Group for Cyberspace Affairs recently issued 3-year Action Implementation Scheme for "Internet Plus" Artificial Intelligence. It proposes that the artificial intelligence market of 100 billion yuan will form application scale by 2018; the R＆D and industrialization of key technologies, such as computer vision, intelligent voice process, biometric features recognition, natural language understanding, intelligent decision-making control and new type man-machine interaction, will be further boosted; the popularization and application of artificial intelligence will be accelerated in household, automobile, unmanned system and security ＆ protection.
Comment: Institutions believed that global internet magnates reinforce the technical innovation and production deployment in the artificial intelligence one by one, arousing a revolution of "artificial intelligence era". In the future five years, this technology will show its importance in the advanced fields, such as voice recognition, industrial eye, unmanned drive, VR and so on. Among the listed companies, the machine vision products of Shenzhen JT Automation Equipment Co., Ltd. (300400.SZ) can be used for visual inspection in the industry; NetPosa Technologies, Ltd. (300367.SZ) is mainly engaged in video supervision ＆ control platform, and it is constantly enlarging the investment in big data and artificial intelligence in recent years, searching for profits in the public information market.
○Lithium battery safety sees policy benefit, BMS becomes highlight
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China is formulating the standard related to battery management system (BMS), and will hold a seminar in Shenzhen on Wednesday, according to related officer in China Automotive Technology ＆ Research Center recently. Media introduced that the BMS design should set battery charging ＆ discharging powers based on battery voltage, temperature and use environment, with information feedback to finished automobile.
Comment: Institutions believed that BMS is extremely crucial to guarantee the power battery safety and improve battery lifespan. Benefiting from booming demands for new energy automobile in the downstream, BMS market scale is rapidly expanding, which is conservatively expected to surpass 10 billion yuan by 2020. In terms of listed companies, Liaoning SG Automotive Group Co., Ltd. (600303.SH) plans to acquire Huizhou Epow Electronic Co., Ltd., and the latter one is a leading BMS enterprise; Shenzhen Desay Battery Technology Co., Ltd. (000049.SZ) is also actively deploying the BMS businesses.
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[Announcement Interpretation]
○Royal Group expands to Internet industry by acquiring two companies
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Royal Group Co., Ltd. (002329.SZ) proposes to acquire 30 percent equities of Beijing Yilian Shixun Technology Co., Ltd. with 135 million yuan. The primary business of Yilian Shixun is mainly constituted by the business of its subsidiaries, while the latter are involved in video service and virtual reality interaction services.
In the meantime, the company proposes to acquire 40 percent equities of Zhejiang Perfect Online Network Technology Co., Ltd. with 156 million yuan. Royal Group has already acquired 60 percent equities of Perfect Online Network Technology with 180 million yuan earlier. The company promises the net profit of the acquired company from 2016 to 2018 will be no less than 26 million yuan, 33.80 million yuan and 43.90 million yuan, respectively.
○Orbita Control Engineering acquires geographic information big date companies with RMB620 mln
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Zhuhai Orbita Control Engineering Co., Ltd. (300053.SZ) proposes to acquire 100 percent equities of Guangzhou Huiyu Intelligent Survey Technology Co., Ltd. and Shanghai KOF Electronic ＆ Engineering Co., Ltd. with 620 million yuan in total. The transaction will be done by issuing 12.90 million shares at 33.64 yuan per share and paying 186 million yuan in cash. In the meantime, a supporting fund will be raised. Huiyu Intelligent Survey Technology is mainly engaged in pipeline detection, surveying and mapping engineering, the development and construction of geographic information system and etc., while KOF Electronic ＆ Engineering is mainly engaged in infrastructure service for data center.
The two companies promise a net profit of 35 million yuan, 45 million yuan and 57 million yuan, and a net profit of 7.5 million yuan, 10.5 million yuan and 13 million yuan, respectively, from 2016 to 2018. It is noteworthy that Orbita Control Engineering proposes a 15-for-10 conversion of capital surplus into shares combined with 0.3 yuan dividend for every 10 shares in its annual profit distribution plan. The company will resume trading on May 24, and the ex-right day and ex-dividend day fall on the same day too.
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○Hailun Piano enters into license agreement with Walt Disney
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Hailun Piano Co., Ltd. (300329.SZ) enters into license agreement with the Walt Disney Company - China, claiming that Hailun Piano is allowed to use Disney's prototype and trademark on certain musical instruments and some accessories in certain period of time. And the company is also allowed to sell licensed products through certain channels.
○Chimin Pharmaceutical acquires European IVD company
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Zhejiang Chimin Pharmaceutical Co., Ltd. (603222.SH) proposes to acquire 100 percent equities of LINEAR CHEMICALS S.L. (with property worth 0.95 million euros included) with 4.99 million euros. The in vitro diagnosis (IVD) products and biotechnology products developed and produced by LINEAR have been available in over 120 countries and regions across the world. With two core products being internationally advanced, LINEAR recorded a net profit of 400,000 euros in 2015. Chimin Pharmaceutical, principally engaged in the development and sales of large volume parenteral, injection and puncture instrument, expands to IVD and will explore new business potential.
In addition, Chengdu Huasun Group Inc., Ltd. (000790.SZ) proposes to acquire 51 percent equities of Sichuan Wanglintang Pharmaceutical Co., Ltd. with cash. The latter owns the approval of 43 medicines and multiple best-selling medicines. The price for the acquisition is still under negotiation.
[TOP]
○Products of Guyuelongshan Shaoxing Wine see price hike again
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Shaoxing Nverhong Wine-making Company, a fully-owned subsidiary under Zhejiang Guyuelongshan Shaoxing Wine Co., Ltd. (600059.SH), has decided to raise products prices from May. For wine products aged below five years, the price hike will be 5 percent; for wine products aged between five to ten years, the price hike will be 10 percent. For some products with nominated brands, the price hike will be 15 percent. The sales of the aforesaid three kinds of products totaled around 200 million yuan in 2015. The overall revenue of Guyuelongshan Shaoxing Wine recorded around 1.38 billion yuan in 2015.
Comment: This is the second price hike announced by the company in 2016. The company announced a price hike of 5-14 percent on March 15. Products involved in the price hike totaled a sales volume of 220 million yuan in 2015.
○Friendship ＆ Apollo Commercial and Citychamp Dartong launch employee shareholding plan
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Hunan Friendship ＆ Apollo Commercial Co., Ltd. (002277.SZ) launches Phase I employee shareholding plan, aiming to raise a fund of 200 million yuan at most. The total capital of the Phase II employee shareholding plan launched by Citychamp Dartong Co., Ltd. (600067.SH) will be no more than 300 million yuan after financing at the ratio of 1:2. The raised fund will be used to purchase and hold the company's stocks through asset management plans.
[Financial Reports Express]
○Semiyearly report of Guangdong HuaSheng Electrical Appliances forecasts performance growth
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Due to consolidated financial statements with Golden Sun Securities, Guangdong HuaSheng Electrical Appliances Co., Ltd. (002670.SZ) expects a year-on-year growth of 170-220 percent in terms of net profit in its semiyearly report.
[Trading Trends]
○Vie Science ＆ Technology bought through four institutional seats
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The trading volume ranking list on May 23 shows that Zhejiang Vie Science ＆ Technology Co., Ltd. (002590.SZ) was bought through four institutional seats with a total of 173 million yuan, accounting for 26 percent of its intraday turnover.
Comment: The company announced on May 23 evening that it proposes to acquire an office building as the R＆D center for intelligent Internet vehicles technology and vehicle electric control products. Institutions believe that the company's air pressure ABS products will continue to see stable growth and its EBS is also now under testing. The company owns the linear brake EMB technology and is now integrating steering system, which will lay a solid foundation for the Advanced Driver Assistance Systems (ADAS).
[Trading Alarms]
○Jiuzhiyang Infrared System to launch IPO on May 24
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Hubei Jiuzhiyang Infrared System Co., Ltd. (300516.SZ), principally engaged in thermal infrared imager, proposes to issue shares at 22.5 yuan per share. The P/E ratio is 23 times and single account is allowed to subscribe 12,000 shares at most.
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