[Today's Guide]
○ Apple's new iPhone expected to carry dual camera, leading new trend of consumer electronics
○ CMGC and CMC restructuring expected to accelerate, subsequent operation space to open
○ Chen Zhixiang to control Dalian Friendship, Orient Zirconic's nuclear sponge zirconium succeeds
○ Tibet Galaxy to see new controlling shareholder, Tongwei expects performance to grow 200 pct in interim report
[SSN Focus]
○ Apple's new iPhone likely to carry dual camera, leading new trend of consumer electronics
------
TrendForce, a global market research institution, on June 1 released its latest report, saying that the specification of the new generation iPhone has been roughly confirmed. It is estimated two handsets of 4.7 inches and 5.5 inches will be launched. The 5.5 inch phone will carry a dual camera. Besides, the maximum memory capacity of the new generation iPhone will be upgraded to 256GB, the biggest ever iPhone NAND Flash capacity. Previously, Huawei has introduced in May a dual cameral phone. Samsung is reportedly to launch a high-end flagship handset carrying dual camera soon.
Comment: on the precondition of not increasing the thickness of the handset, dual camera can improve the performance of the mobile phone photographing. Dual camera is expected to lead this trend in the consumer electronics area. As more and more mobile phone manufacturers followed, Camera manufacturers are expected to embrace increased market space. In listed companies, Shenzhen O-film Tech Co., Ltd. (002456.SZ) and Huizhou Speed Wireless Technology Co., Ltd. (300322.SZ) produce camera module; China Wafer Level CSP Co., Ltd. (603005.SH) provides close beta service for Image sensor chip.
[TOP]
[SSN Selection]
○ CSOP FTSE China A50 ETF on June 1 again attracted 1.25 billion yuan capital inflow. The ETF has slight premium of 0.56 percent in Hong Kong's secondary market.
○ The Northbound trading recorded a net inflow of 1.9 billion yuan on June 1. It had seen a net inflow of approximately 10 billion yuan in total in the last six trading days.
○ The manufacturing PMI in May read 50.1 percent, and sub-indexes indicated that high-tech and consumer goods manufacturing has been better than the overall level.
○ The National Development and Reform Commission (NDRC) and National Energy Administration jointly issued a five-year plan on technology revolution innovation action, determining advanced nuclear power, hydrogen energy and fuel cell technology innovation as the key tasks.
○ Microsoft announced to cooperate with third-party hardware enterprises such as Dell and HP, to open the virtual reality platform Windows Holographic
[Industry Information]
○CMGC and CMC restructuring expected to accelerate, subsequent operation space to open
------
Last December, the national Development and Reform Commission (NDRC) announced that China Metallurgical Group Corporation (CMGC) would merge with China Minmetals Corporation (CMC). The restructuring is expected to speed up now. CMC on May 9 announced on its official website that the group company had convened a meeting on the expansion of the management, to adjust the positions of major leaders.
Comment: the securitization ratio of CMGC has reached 98 percent currently. While CMC, which controls five listed platform, has a securitization rate of just 33 percent. Therefore, CMC has large space for subsequent capital cooperation. Kingray New Materials Science ＆ Technology Co., ltd. (600390.SH) has already suspended trading, preparing to acquire the financial assets of CMC. In addition, Zhuzhou Smelter Group Co., Ltd. (600961.SH) and China Minmetals Rare Earth Co., Ltd. (000831.SZ) are also controlled by CMC.
[TOP]
○ Pageant of Internet of things industry to hold soon, Internet of everything becomes new trend
------
The 2016 China (Xiamen) International Internet of Things Expo ＆ Peak Forum will be held in Xiamen on June 3. The expo themed "smart city, connect life" aims to build a platform for technological communication, promotion and application of Internet of things, to further boost the development of China's Internet of things industry.
Comment: instituions believe that Internet of things is upgrading from basic equipment such as hardware and sensor to software platform and vertical industry applications, and Internet of everything has broad prospect. It is estimated that there will be 50 billion connections worldwide by 2020. The size China's Internet of things market will be 200 million. In A share companies, Hangzhou Century Co., Ltd. (300078.SZ) is cooperating with H3C Technologies Co., Ltd. (H3C) to build a common platform of Internet of things based on the union of four networks; Kyland Technology Co., Ltd. (300353.SZ) expect to make breakthroughs in the intelligent transportation market first with its industrial interconnection integrated solution; Guomai Technologies, Inc. (002093.SZ) proposes to raise fund through private placement for big data operational platform of Internet of things.
[Announcement Interpretation]
○ Dalian Friendship to transfer shares with 30 pct premium
------
Friendship Group, the controlling shareholder of Dalian Friendship (Group) Co., Ltd. (000679.SZ), intends to transfer 100 million shares of the company (accounting for 28.06 percent of its total share capital) at 1.3 billion yuan. Chen Zhixiang, a natural person, and Wuxin Investment Group, will hold 60 percent and 40 percent, respectively. The actual controller of the listed company will be Chen Zhixiang after the completion. Information shows that Chen made investments in real estate and financial sectors while Wuxin Investment Group is a company under Wuhan Financial Holdings (Group) Co., Ltd., which is under the State-owned Assets Supervision and Administration Commission of Wuhan Municipal Government.
Comment: The purchase price of 13 yuan per share represents a premium of about 30 percent over its latest stock price of 9.9 yuan per share. Considering the current operation of Dalian Friendship, the acquirers may have plans on subsequent assets injection. Dalian Friendship mulled acquiring certain assets of Wuhan Financial Holdings with 6.3 billion yuan last year to achieve the back-door listing of the latter, but the reorganization failed in mid-May. Wuhan Financial Holdings participated in the transfer of the shares of Dalian Friendship as the second biggest shareholder and its subsequent operation worth attention.
○ Orient Zirconic's nuclear sponge zirconium succeeds
------
At the appraisal meeting of China nuclear Fuel Corporation, the nuclear sponge zirconium production line with an annual output of 1.5 millon tons of a subsidiary of Guangdong Orient Zirconic Ind Sci and Tech Co., Ltd. (002167.SZ) passed the appraisal. It fully shows the leading position of the nuclear sponge zirconium products of the company in China. The products of the company own the only proprietary intellectual property right in China, breaking the monopoly of overseas technologies. As a result, the nuclear sponge zirconium product of the company enters the nuclear supply system.
[TOP]
○ Tibet Galaxy to see new controlling shareholder, Tianyi Longxing Investment to control 10.65 percent equities
------
Tibet Guangda Jinlian Industrial Co., Ltd., the controlling shareholder of Tibet Galaxy Science ＆ Technology Development Co., Ltd. (000752.SZ), proposes to transfer 28.10 million shares of the company (accounting for 10.65 percent of its total share capital) to Tibet Tianyi Longxing Investment Co., Ltd., which will become the biggest shareholder of the company. Tianyi Longxing Investment was established in September, 2015. Based on public information, Tianyi Longxing Investment is a shareholding platform company with a complicated shareholder structure. Tibet Galaxy also announced the suspension of mulling significant assets reorganization.
○ Shindoo Chemi-industry to establish a new company to develop electronic sports across China
------
A wholly-owned subsidiary of Shindoo Chemi-industry Co., Ltd. (002539.SZ) intends to join Shanghai Wangyu Information Technology Co., Ltd. and Shenzhen Bolei Technology Co., Ltd. in establishing Chengdu King Inter-entertainment Network Technology Co., Ltd. The subsidiary will contribute 13 million yuan, accounting for 65 percent of the stakes of the new company.
The new company will develop electronic sports, electronic games and relevant industries in medium and small cities and rural areas in China. It will establish 1,000 experience centers at the county level and conduct the construction and operation of 1,000 chain stores. Shindoo Chemi-industry announced on the same day that the subsidiary has signed a strategic cooperation agreement with Tencent Games to jointly explore the electronic sports, electronic games and inter entertainment market in medium and small cities and rural areas in China.
○ Gangtai Holding to introduce phase-II employee shareholding plan
------
Gansu Gangtai Holding (Group) Co., Ltd. (600687.SH) released the draft of its phase-II employee shareholding plan, proposing to raise a maximum of 20 million yuan. It will set an asset management plan with no more than 60 million yuan at the proportion of 1:2 to purchase and hold the stocks of the company.
[Financial Reports Express]
○ Tongwei expects growth in interim report
------
Tongwei Co., Ltd. (600438.SH) expects a growth of 140 to 200 percent in its interim repot. It is mainly thanks to the
○ Jiangshan Chemical to turn losses into profits in interim report
------
Zhejiang Jiangshan Chemical Co., Ltd. (002061.SZ) revised its interim performance forecast from the previously expected loss of 20-30 million yuan to a profit of 8-18 million yuan. It is mainly thanks to the consolidation of the financial statements of Ningbo Zhetie Daphoon Chemical Co., Ltd.
[TOP]
[Trading Trends]
○ Four institutional seats buy Der Future
------
The trading volume ranking list on June 1 shows that four institutional seats bought Der Future Science ＆ Technology Holding Group Co., Ltd. (002631.SZ) with a total of 119 million yuan, accounting for 20.63 percent of its intraday turnover. One institutional seat sold it with 7.91 million yuan.
Comment: Institutes believe that the company bought shares of Henan Yiteng New Energy Technology Co., Ltd. at the beginning of the year. The latter is constructing a lithium battery membrane project with 240 million square meters in high-tech zone of Wujiang. It is expected that Der Future will further acquire Yiteng New Energy in the future to fully control it. In addition, the chairman of the company further increased the shareholding in the company in May. The employee shareholding plan of the company bought the shares of the company at an average price of 26.39 yuan in 2015 while the latest stock price of the company is 22.75 yuan.
Latest comments