[Today's Guide]
○Three high-profile conferences in China's scientific and technological circles to open, top-level design for technological innovation to widely agreed
○Political Bureau of CPC advances development of old age care industry, old age care market to see rapid expansion
○CEC to sell CEC CoreCast as shell resource, Navinfo to acquire auto chip company
○East Lake High Technology to expand primary business through private placement, company under Zhongzhi Enterprise Group acquires equities of Mailyard Share
[SSN Focus]
○Three high-profile conferences in China's scientific and technological circles to open, top-level design for technological innovation to widely agreed
------
The Xinhua News Agency published an article on May 29 claiming that the holding of the National Scientific and Technological Innovation Conference, the Conference of the Chinese Academy of Sciences and Chinese Academy of Engineering as well as the Ninth National Congress of the China Association for Science and Technology declares a historic moment of China's scientific and technological circles. The construction of an innovative China is ready to start. The supporting and leading role played by technology in China's economy is acknowledged in the article through lots of data and cases in areas including quantum communication, the Internet of Things and gene sequencing.
Comment: The Central Committee of the Communist Party of China (CPC) and the State Council recently printed and distributed the Outline of National Innovation-Driven Development Strategy which defines the three-step strategic goals of building China into a world scientific and technological innovation power by 2050. The holding of the aforesaid three meetings might make the top-level design for scientific and technological innovation a consensus widely agreed by the people. The Chinese Academy of Sciences (CAS), the top academic institution in China's natural science circle, will play an important role in the process. As to listed companies, CASTECH Inc. (002222.SZ) is a company under Fujian Institute of Research on the Structure of Matter, CAS; Siasun Robot ＆ Automation Co., Ltd. (300024.SZ) is actually controlled by CAS; Changchun Institute of Optics, Fine Mechanics and Physics, CAS is the substantial shareholder of Changchun Up Optotech Co., Ltd. (002338.SZ).
[SSN Selection]
○The Political Bureau of the Central Committee held a meeting on May 27 to plan the construction of Tongzhou district into a subsidiary administrative center of Beijing. The government of Tongzhou district issued a notice on the same day requiring controlling those who are already registered in other parts of Beijing and who desire a Tongzhou hukou to control the number of its residents.
○The State Council recently decided to appoint Zhao Zhengpin as the vice president of China Securities Regulatory Commission (CSRC).
○The Shanghai and Shenzhen Stock Exchanges announced new rules for the trading suspension and resumption of listed companies. The trading suspension applied for reorganization of major assets should only be valid for three months at most in principle.
○The National Equities Exchange and Quotations is officially allowed to have multi-layered management from June 27. The standards for multi-layered management focus more on liquidity when compared with previous draft for soliciting public opinions.
○The Economic Observer reports that the competent department for lottery is now working on lowering the issuance and sales fees of lottery, and the cut of fees for Internet-based lottery is also taken into consideration.
○Janet Yellen, chairwoman of the US Federal Reserve, indicated on May 27 that the interest rates will rise in coming months if the economy continues to improve. Both the U.S. dollar and the US stock market record high in recent period.
TOP
[Industry Information]
○Political Bureau of CPC advances development of old age care industry, old age care market to see rapid expansion
------
The Political Bureau of the Central Committee held the 32th meeting on May 27 to learn about the situation of aging population and relevant countermeasures in China. President Xi Jinping proposed during the meeting to intensify research on aging, learn from international experience and come up with good top-level design; improve old age care and medical insurance system; implement well policies and measures supporting the development of old age care industry and facilitating integrated development of medical, health and old age care services.
Comment: The huge number of aged people in China brings great demand on products and services for the aged, so industries involved in services for the aged will see great development potential. Under such circumstances, relevant medical care, culture and entertainment markets will embrace rapid expansion. As to listed companies, Zhejiang Double Arrow Rubber Co., Ltd. (002381.SZ) has acquired all equities of Tongxiang Heji Nursing Home for the Aged this year, and it has developed business cooperation with Shanghai Hongri Home Enterprise Management Limited; by relying on its cash flow advantage in hydroelectricity business, Hunan Development Group Co., Ltd. (000722.SZ) focuses on building a large-scale complex involving both old age care and tourism.
○Shaoxing reinforces efforts in environment monitoring, market share of printing and dyeing market to centralize
------
It is reported by Shaoxing Daily on May 27 that the municipal government of Shaoxing city announced requirement on reinforcing prevention and control of water and air pollution and exercising administrative accountability system. It is introduced that the number of water sections under assessment is increased to 128 and the monitoring is expanded to towns and villages, while the number of auto-monitoring stations for air quality is increased to 14.
Comment: Public material shows that Shaoxing and Xiaoshan, two cities in Zhejiang province, take up over one third of national printing and dyeing capacity. Since the G20 Summit will be held in Hangzhou in September 2016 and intense preparation is underway, high pollution enterprises in Hangzhou and surrounding areas will be under more readjustment. Market shares might be further controlled by leading enterprises which are more environmental friendly amid production. As to listed companies, Zhejiang Runtu Co., Ltd. (002440.SZ) is a leading company in disperse dyes and reactive dyes market; Zhejiang Hangmin Co., Ltd. (600987.SH), with a capacity over 1 billion meters, is a leading enterprise involved in printing and dyeing in China.
TOP
[Announcement Interpretation]
○CEC to sell CEC CoreCast as shell resource
------
China Electronics Corporation (CEC), substantial shareholder of CEC CoreCast Corporation Limited (600764.SH), proposes to publicly solicit transferee to transfer 176 million shares of CEC CoreCast, accounting for 53.47 percent of the company's total share capital. The controlling shareholder and actual controller of the company will then be changed.
The price of the transaction will be based on the arithmetic average of daily weighted average prices in 30 trading days before the company's announcement. The soliciting will be valid from May 30 to June 13. In the meantime, transferee must come up with feasible operation and development plan for the transformation and upgrading of CEC CoreCast, and promise to transfer assets transaction business, which is the primary business of CEC CoreCast, to CES.
○Navinfo to acquire auto chip company with RMB3,875 mln
------
Navinfo Co., Ltd. (002405.SZ) proposes to acquire the 100 percent equities of AutoChips Inc. with 3,875 million yuan through private placement and cash, and meanwhile, it also plans to raise 3.8 billion yuan through private placement. The prices involved in the said two private placements are 25.59 yuan per share.
AutoChips is mainly engaged in the R＆D and design for auto chips. Its main products are vehicle-mounted information ＆ entertainment system ship and solutions. It promises that its net profit forecasts of 2016 to 2018 are 187 million yuan, 228 million yuan and 300 million yuan respectively.
TOP
○East Lake High Technology to expand technical zone and environmental protection business through private placement
------
Wuhan East Lake High Technology Group Co., Ltd. (600133.SH) proposes to raise 1.7 billion yuan through private placement for development and operation of technical zone, environmental protection business expansion and etc. Its controlling shareholder United Investment Group Co., Ltd. committed that its subscription will be no less than 300 million yuan, with a lockup term of 36 months.
○Company under Zhongzhi Enterprise Group acquires equities of Mailyard Share, restructuring likely to follow
------
Mailyard Group Co., Ltd., controller of Hubei Mailyard Share Co., Ltd. (600107.SH), sold the 79.94 percent equities of the listed company by public auction. "Zhong Fang Silk Road", a project company jointly established by Zhongzhi Enterprise Group and other two companies, acquired the equities with 956 million yuan in total, accounting for 58,667,000 shares of Mailyard Share, and the cost was 16.3 yuan per share. The latest stock price of Mailyard Share is 20.94 yuan. Zhong Fang Silk Road indicated that it may carry out restructuring plan in the future.
○Overseas Chinese Electronic to acquire BBD to step in big data industry
------
Xiamen Overseas Chinese Electronic Co., Ltd. (600870.SH) proposes to acquire the 100 percent equities of Chengdu Business Big Data (BBD) with 1.8 billion yuan through share issuance and cash, and meanwhile, it also plans to raise 1.6 billion yuan. The price of the said two private placements is 6.15 yuan per share.
BBD is a commercial data provider for financial, commercial and related institutions, and commits that its net profits after deduction for 2016 to 2019 will be no less than 50 million yuan, 100 million yuan, 180 million yuan and 300 million yuan respectively. Overseas Chinese Electronic got rid of the ST title in April.
○Enlight Media acquired equities of Maoyan Culture ＆ Innovation with RMB1,583 mln
------
Beijing Enlight Media Co., Ltd. (300251.SZ) proposes to acquire the 19 percent equities of Hangzhou Maoyan Culture ＆ Innovation Co., Ltd. held by Beijing Sankuai Technology Co., Ltd. with 1,583 million yuan. Meanwhile, the listed company's controlling shareholder Enlight Holding Group Co., Ltd. also plans to acquire 9.6 percent equities of Maoyan Culture ＆ Innovation, and swap additional 28.8 percent with its held 6 percent equities of the listed company. Maoyan Movie, operated by Maoyan Culture ＆ Innovation, is a leading online movie ticket sales company in China, with the market share of over 30 percent.
Comment: As a movie related company, Maoyan Culture ＆ Innovation has been invested by Enlight Media, which can gain massive online user groups and online movie business resources. Based on the overall evaluation of Maoyan Culture ＆ Innovation, its 176 million shares (6 percent of the total) held by Enlight Media evaluate 2.4 billion yuan, 13.63 yuan per share. The stock price before trading suspension was 12.69 yuan per share.
○Yinghe Technology to acquire lithium battery equipment producer
------
Shenzhen Yinghe Technology Co., Ltd. (300457.SZ) proposes to acquire the 100 percent equities of Donggan Areconn Precision Machinery Co., Ltd. with 438 million yuan, 70 percent will be paid by fund raised through private placement with 64.43 yuan per share, and other 30 percent in cash. At the meantime, the company plans to raise the fund no more than 438 million yuan through private placement, and the offering price benchmark date will be the first date of issuance.
Areconn Precision Machinery is mainly engaged in automatic equipment for high precious and high performing lithium battery production, having basis to integrate the businesses with Yinghe Technology. According to original shareholders, the net profits of Areconn Precision Machinery from 2016 to 2018 will be no less than 39 million yuan, 52 million yuan and 65 million yuan.
[Trading Alarms]
○Sundy Science and Technology to issue new shares on May 30
------
The offering price of Hunan Sundy Science and Technology Co., Ltd. (300515.SZ) is 8.57 yuan, with the P/E ratio of 23 times. The upper limit on subscription is 10,000 shares. The company is mainly engaged in laboratory analyzer instruments.
[Weekly Review]
○Getting used to "dimensions lowering" strategy
------
The performance of A-share market was diversified in the past two weeks. Based on indexes, it was totally transverse consolidations in a narrow range, which is very boring. But in terms of sector hots, the themes of OLED, ternary materials and lithium battery were repeatedly active, bringing in many market opportunities. It means that stock index futures are difficult to earn money, but event investment still has huge space.
We regard the said situation as that the market is changing and lowering the dimensions. The investment for high-leveraged derivatives is restricted under current policy environment. But rationally-leveraged stock investment is likely to gain opportunities step by step. It meets the policy orientation in the latter period, and also may be the big trend of the future market.
It is core to observe the market without focusing on index dimensions so as to master such trend. In the past two weeks, the stock market became more active, and the themes with favorable performances and imaging space were obvious active. SSN found various themes last week, such as glass phone body of Apply, block chain association, Mars exploration plan and etc., and all attracted much market attention. In the future, we will still continue to reinforce the information collection and analysis, making constant effort with you together.
TOP
○Three high-profile conferences in China's scientific and technological circles to open, top-level design for technological innovation to widely agreed
○Political Bureau of CPC advances development of old age care industry, old age care market to see rapid expansion
○CEC to sell CEC CoreCast as shell resource, Navinfo to acquire auto chip company
○East Lake High Technology to expand primary business through private placement, company under Zhongzhi Enterprise Group acquires equities of Mailyard Share
[SSN Focus]
○Three high-profile conferences in China's scientific and technological circles to open, top-level design for technological innovation to widely agreed
------
The Xinhua News Agency published an article on May 29 claiming that the holding of the National Scientific and Technological Innovation Conference, the Conference of the Chinese Academy of Sciences and Chinese Academy of Engineering as well as the Ninth National Congress of the China Association for Science and Technology declares a historic moment of China's scientific and technological circles. The construction of an innovative China is ready to start. The supporting and leading role played by technology in China's economy is acknowledged in the article through lots of data and cases in areas including quantum communication, the Internet of Things and gene sequencing.
Comment: The Central Committee of the Communist Party of China (CPC) and the State Council recently printed and distributed the Outline of National Innovation-Driven Development Strategy which defines the three-step strategic goals of building China into a world scientific and technological innovation power by 2050. The holding of the aforesaid three meetings might make the top-level design for scientific and technological innovation a consensus widely agreed by the people. The Chinese Academy of Sciences (CAS), the top academic institution in China's natural science circle, will play an important role in the process. As to listed companies, CASTECH Inc. (002222.SZ) is a company under Fujian Institute of Research on the Structure of Matter, CAS; Siasun Robot ＆ Automation Co., Ltd. (300024.SZ) is actually controlled by CAS; Changchun Institute of Optics, Fine Mechanics and Physics, CAS is the substantial shareholder of Changchun Up Optotech Co., Ltd. (002338.SZ).
[SSN Selection]
○The Political Bureau of the Central Committee held a meeting on May 27 to plan the construction of Tongzhou district into a subsidiary administrative center of Beijing. The government of Tongzhou district issued a notice on the same day requiring controlling those who are already registered in other parts of Beijing and who desire a Tongzhou hukou to control the number of its residents.
○The State Council recently decided to appoint Zhao Zhengpin as the vice president of China Securities Regulatory Commission (CSRC).
○The Shanghai and Shenzhen Stock Exchanges announced new rules for the trading suspension and resumption of listed companies. The trading suspension applied for reorganization of major assets should only be valid for three months at most in principle.
○The National Equities Exchange and Quotations is officially allowed to have multi-layered management from June 27. The standards for multi-layered management focus more on liquidity when compared with previous draft for soliciting public opinions.
○The Economic Observer reports that the competent department for lottery is now working on lowering the issuance and sales fees of lottery, and the cut of fees for Internet-based lottery is also taken into consideration.
○Janet Yellen, chairwoman of the US Federal Reserve, indicated on May 27 that the interest rates will rise in coming months if the economy continues to improve. Both the U.S. dollar and the US stock market record high in recent period.
TOP
[Industry Information]
○Political Bureau of CPC advances development of old age care industry, old age care market to see rapid expansion
------
The Political Bureau of the Central Committee held the 32th meeting on May 27 to learn about the situation of aging population and relevant countermeasures in China. President Xi Jinping proposed during the meeting to intensify research on aging, learn from international experience and come up with good top-level design; improve old age care and medical insurance system; implement well policies and measures supporting the development of old age care industry and facilitating integrated development of medical, health and old age care services.
Comment: The huge number of aged people in China brings great demand on products and services for the aged, so industries involved in services for the aged will see great development potential. Under such circumstances, relevant medical care, culture and entertainment markets will embrace rapid expansion. As to listed companies, Zhejiang Double Arrow Rubber Co., Ltd. (002381.SZ) has acquired all equities of Tongxiang Heji Nursing Home for the Aged this year, and it has developed business cooperation with Shanghai Hongri Home Enterprise Management Limited; by relying on its cash flow advantage in hydroelectricity business, Hunan Development Group Co., Ltd. (000722.SZ) focuses on building a large-scale complex involving both old age care and tourism.
○Shaoxing reinforces efforts in environment monitoring, market share of printing and dyeing market to centralize
------
It is reported by Shaoxing Daily on May 27 that the municipal government of Shaoxing city announced requirement on reinforcing prevention and control of water and air pollution and exercising administrative accountability system. It is introduced that the number of water sections under assessment is increased to 128 and the monitoring is expanded to towns and villages, while the number of auto-monitoring stations for air quality is increased to 14.
Comment: Public material shows that Shaoxing and Xiaoshan, two cities in Zhejiang province, take up over one third of national printing and dyeing capacity. Since the G20 Summit will be held in Hangzhou in September 2016 and intense preparation is underway, high pollution enterprises in Hangzhou and surrounding areas will be under more readjustment. Market shares might be further controlled by leading enterprises which are more environmental friendly amid production. As to listed companies, Zhejiang Runtu Co., Ltd. (002440.SZ) is a leading company in disperse dyes and reactive dyes market; Zhejiang Hangmin Co., Ltd. (600987.SH), with a capacity over 1 billion meters, is a leading enterprise involved in printing and dyeing in China.
TOP
[Announcement Interpretation]
○CEC to sell CEC CoreCast as shell resource
------
China Electronics Corporation (CEC), substantial shareholder of CEC CoreCast Corporation Limited (600764.SH), proposes to publicly solicit transferee to transfer 176 million shares of CEC CoreCast, accounting for 53.47 percent of the company's total share capital. The controlling shareholder and actual controller of the company will then be changed.
The price of the transaction will be based on the arithmetic average of daily weighted average prices in 30 trading days before the company's announcement. The soliciting will be valid from May 30 to June 13. In the meantime, transferee must come up with feasible operation and development plan for the transformation and upgrading of CEC CoreCast, and promise to transfer assets transaction business, which is the primary business of CEC CoreCast, to CES.
○Navinfo to acquire auto chip company with RMB3,875 mln
------
Navinfo Co., Ltd. (002405.SZ) proposes to acquire the 100 percent equities of AutoChips Inc. with 3,875 million yuan through private placement and cash, and meanwhile, it also plans to raise 3.8 billion yuan through private placement. The prices involved in the said two private placements are 25.59 yuan per share.
AutoChips is mainly engaged in the R＆D and design for auto chips. Its main products are vehicle-mounted information ＆ entertainment system ship and solutions. It promises that its net profit forecasts of 2016 to 2018 are 187 million yuan, 228 million yuan and 300 million yuan respectively.
TOP
○East Lake High Technology to expand technical zone and environmental protection business through private placement
------
Wuhan East Lake High Technology Group Co., Ltd. (600133.SH) proposes to raise 1.7 billion yuan through private placement for development and operation of technical zone, environmental protection business expansion and etc. Its controlling shareholder United Investment Group Co., Ltd. committed that its subscription will be no less than 300 million yuan, with a lockup term of 36 months.
○Company under Zhongzhi Enterprise Group acquires equities of Mailyard Share, restructuring likely to follow
------
Mailyard Group Co., Ltd., controller of Hubei Mailyard Share Co., Ltd. (600107.SH), sold the 79.94 percent equities of the listed company by public auction. "Zhong Fang Silk Road", a project company jointly established by Zhongzhi Enterprise Group and other two companies, acquired the equities with 956 million yuan in total, accounting for 58,667,000 shares of Mailyard Share, and the cost was 16.3 yuan per share. The latest stock price of Mailyard Share is 20.94 yuan. Zhong Fang Silk Road indicated that it may carry out restructuring plan in the future.
○Overseas Chinese Electronic to acquire BBD to step in big data industry
------
Xiamen Overseas Chinese Electronic Co., Ltd. (600870.SH) proposes to acquire the 100 percent equities of Chengdu Business Big Data (BBD) with 1.8 billion yuan through share issuance and cash, and meanwhile, it also plans to raise 1.6 billion yuan. The price of the said two private placements is 6.15 yuan per share.
BBD is a commercial data provider for financial, commercial and related institutions, and commits that its net profits after deduction for 2016 to 2019 will be no less than 50 million yuan, 100 million yuan, 180 million yuan and 300 million yuan respectively. Overseas Chinese Electronic got rid of the ST title in April.
○Enlight Media acquired equities of Maoyan Culture ＆ Innovation with RMB1,583 mln
------
Beijing Enlight Media Co., Ltd. (300251.SZ) proposes to acquire the 19 percent equities of Hangzhou Maoyan Culture ＆ Innovation Co., Ltd. held by Beijing Sankuai Technology Co., Ltd. with 1,583 million yuan. Meanwhile, the listed company's controlling shareholder Enlight Holding Group Co., Ltd. also plans to acquire 9.6 percent equities of Maoyan Culture ＆ Innovation, and swap additional 28.8 percent with its held 6 percent equities of the listed company. Maoyan Movie, operated by Maoyan Culture ＆ Innovation, is a leading online movie ticket sales company in China, with the market share of over 30 percent.
Comment: As a movie related company, Maoyan Culture ＆ Innovation has been invested by Enlight Media, which can gain massive online user groups and online movie business resources. Based on the overall evaluation of Maoyan Culture ＆ Innovation, its 176 million shares (6 percent of the total) held by Enlight Media evaluate 2.4 billion yuan, 13.63 yuan per share. The stock price before trading suspension was 12.69 yuan per share.
○Yinghe Technology to acquire lithium battery equipment producer
------
Shenzhen Yinghe Technology Co., Ltd. (300457.SZ) proposes to acquire the 100 percent equities of Donggan Areconn Precision Machinery Co., Ltd. with 438 million yuan, 70 percent will be paid by fund raised through private placement with 64.43 yuan per share, and other 30 percent in cash. At the meantime, the company plans to raise the fund no more than 438 million yuan through private placement, and the offering price benchmark date will be the first date of issuance.
Areconn Precision Machinery is mainly engaged in automatic equipment for high precious and high performing lithium battery production, having basis to integrate the businesses with Yinghe Technology. According to original shareholders, the net profits of Areconn Precision Machinery from 2016 to 2018 will be no less than 39 million yuan, 52 million yuan and 65 million yuan.
[Trading Alarms]
○Sundy Science and Technology to issue new shares on May 30
------
The offering price of Hunan Sundy Science and Technology Co., Ltd. (300515.SZ) is 8.57 yuan, with the P/E ratio of 23 times. The upper limit on subscription is 10,000 shares. The company is mainly engaged in laboratory analyzer instruments.
[Weekly Review]
○Getting used to "dimensions lowering" strategy
------
The performance of A-share market was diversified in the past two weeks. Based on indexes, it was totally transverse consolidations in a narrow range, which is very boring. But in terms of sector hots, the themes of OLED, ternary materials and lithium battery were repeatedly active, bringing in many market opportunities. It means that stock index futures are difficult to earn money, but event investment still has huge space.
We regard the said situation as that the market is changing and lowering the dimensions. The investment for high-leveraged derivatives is restricted under current policy environment. But rationally-leveraged stock investment is likely to gain opportunities step by step. It meets the policy orientation in the latter period, and also may be the big trend of the future market.
It is core to observe the market without focusing on index dimensions so as to master such trend. In the past two weeks, the stock market became more active, and the themes with favorable performances and imaging space were obvious active. SSN found various themes last week, such as glass phone body of Apply, block chain association, Mars exploration plan and etc., and all attracted much market attention. In the future, we will still continue to reinforce the information collection and analysis, making constant effort with you together.
TOP
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