[Today's Guide]
○ Merkel to visit Shenyang city next week, Sino-German manufacturing connection to deepen
○ Seven ministries boost family doctor contract-signing services, glyphosate price rebounded
○ CORPRO Technology to invest in satellite application field, Shuangta Food and Tianrun Enterprises Holding saw shareholding increase
○ Songz Automobile Air Conditioning raised funds through private placement, Maoye Commercial to purchases department stores in three places
[SSN Focus]
○Merkel to visit Shenyang city next week, Sino-German manufacturing connection to deepen
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Hong Lei, spokesman of Ministry of Foreign Affairs, announced on June 6 that Germany Premier Merkel will visit China from June 12 to 14, and jointly hold the fourth round of Sino-German negotiation with Chinese Premier Li Keqiang. The both parties will have about 20 minsters or vice ministers to attend the meeting, discussing the mutual cooperation planning of each field in next phase. Besides Beijing, Merkel will also visit Shenyang in Liaoning province.
Comment: Close relationship between Germany and China in recent years positively pushes the connection of "Made in China 2025" and "German Industry 4.0". Germany enterprises have technical advantage in robot manufacture and control technology, and "expanding robot and intelligent manufacturing industries" is just the key point of transformation and upgrading in Shenyang. Therefore, there is huge cooperative potential between the two parties. Among A-share listed companies, i5 intelligent machine tool of Shenyang Machine Tool Co., Ltd. (000410.SZ) has gained explosive growth, and Shenzhen has already issued implementation opinions to support its strategic plan; a series of intelligent grinding robots of Shenyang Yuanda Intellectual Industry Group Co., Ltd. (002689.SZ) have leading technologies in this field; digital factory businesses of Shenyang Blue Silver Industry Automatic Equipment Co., Ltd. (300293.SZ) develop very fast.
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[SSN Selection]
○New securities trading system of Shenzhen Stock Exchange has been successfully launched on June 6, and the development for new businesses including Shenzhen-Hong Kong Stock Connect program and stock futures has been finished in this system.
○Minister of Finance Lou Jiwei on June 6 indicated that China will continue to reduce the overcapacity of steel industry, and the MOF is solving the unemployment problems during the de-overcapacity process through fiscal policies.
○National Energy Administration on June 6 issued Electric Power Planning ＆ Management Method to support preferential utilization of non-fossil energy and distributed energy development.
○The central bank revised Temporary Management Method for Large-amount Deposit Receipt, and the subscription threshold for individual investors is reduced to 200,000 yuan from 300,000 yuan.
○Ministry of Land and Resources indicated that the total amount of newly added land for construction will be declined to 32.56 million mu in the period of "13th Five-Year Plan" from 39.25 million mu in that of "12th Five-Year Plan".
[Industrial Information]
○Seven ministries boost family doctor contract-signing services, medical information based market to expect
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The website of National Health and Family Planning Commission on June 6 shows that Guidance Opinions on Boosting Contract Signing Services of Family Doctor formulated by seven ministries is being printed and issued. It proposes to carry out pilots for the said services, and realize a full coverage by 2020. It also proposes to build up regional medicine ＆ health information platform, share the information including health files and e-medical-record, reinforce the technical communication through tele-medical treatment, and positively take advantage of mobile internet and wearable devices to provide various medical care services for contracted residents.
Comment: Boosting such services will benefit multi-level diagnosis ＆ treatment and hospitalization pattern, with a significant meaning to improve effective utilization of medical resources, and ease the "expensive and difficult hospitalization". In this progress, information-oriented measures for medical care are likely to play an important role. Among the listed companies, Winning Health Technology Group Co., Ltd. (300253.SZ) has deployed in this field early; Andon Health Co., Ltd. (002432.SZ) and Jiangsu Yuyue Medical Equipment ＆ Supply Co., Ltd. (002223.SZ) have professional advantages in household e-products for medical care, wearable devices and health monitoring.
○Reducing production and maintaining price gradually play role, glyphosate price rebounded
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SSN learnt that glyphosate production started to reduce and the price rebounded in May due to industrial action of reducing the production and maintaining the price, and the market price increased 100 to 200 yuan per ton last week. Additionally, the EU tries to pass a proposal of shorter validity period for glyphosate re-registration before the glyphosate license expires on June 30. The downstream manufacturers previously waiting and seeing in the EU market will positively carry out purchase, if the said proposal is smoothly approved.
Comment: The said price rebound mainly benefits from various factors: 1) reducing production and maintaining price gradually play a role, the market is depressed for a long term, and inventory level is low; 2) glyphosate related enterprises suffer losses, with strong motive to increase the price; 3) some enterprises are conducting overhaul, and environmental protection costs increase. In terms of listed companies, glyphosate business of Jiangsu Yangnong Chemical Co., Ltd. (600486.SH) takes up a higher proportion in the company's businesses. The dicamba project will start operation gradually in the future, which is expected to improve the company's performance. Nantong Jiangshan Agrochemical ＆ Chemicals Co., Ltd. (600389.SH) owns the capacity of producing 70,000 tons of glyphosate and there is huge potential for rebound in performance due to the increasing price of its products.
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[Announcement Interpretation]
○CORPRO Technology to raise RMB1.1 bln to invest in satellite application field
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Chengdu CORPRO Technology Co., Ltd. (300101.SZ) plans to raise 1.165 billion yuan by issuing 65 million shares through private placement to invest in four projects including construction project of satellite Internet technology park (phase one), industrialization of multi-functional terminal chips for satellite application and complete machine, MEMS integrated navigation production and testing ability construction and industrialization of AIVS and to supplement working capitals.
○Shuangta Food and Tianrun Enterprises Holding saw shareholding increase
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Some directors, supervisors and senior managers of Yantai Shuangta Food Co., Ltd. (002481.SZ) increased their shareholdings by 49.53 million shares during Feb. 29 and June 3, accounting for 3.92 percent of the company's total share capital. Lai Ganfeng, actual controller of Hunan Tianrun Enterprises Holding Co., Ltd. (002113.SZ) increased his shareholdings by 3.847 million shares during May 31 and June 3. The shares is priced at 25.99 yuan per share on average, which total cost Lai about 100 million yuan.
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○Songz Automobile Air Conditioning raised funds through private placement to invest in air conditioner of new energy vehicle and rail transit vehicle
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Songz Automobile Air Conditioning Co., Ltd. (002454.SZ) plans to raise 1.58 billion yuan by issuing 125 million shares through private placement at a price of 12.63 yuan per share. The fundraising will be invested in industrialization project of air conditioner and control system of new energy vehicle, main line railway and air conditioner of urban rail transit vehicle and be used to supplement working capitals. The company's president Chen Fuquan and shareholder Beijing Bashi Media Co., Ltd. (600386.SH) will subscribe the shares.
○Maoye Commercial to raise RMB2.8 bln through private placement to purchases department stores in three places
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Maoye Commercial Co., Ltd. (600828.SH) plans to raise 2.8 billion yuan by issuing shares at a floor price of 6.18 yuan per share through private placement to purchase 100 percent equity of Qinghuangdao Maoye Holding Co., Ltd., 97.31 percent equity of Taizhou First Department Store Co., Ltd. and 100 percent equity of Chongqing Maoye Department Store Co., Ltd. and to repay debts. This assets acquisition is an important step that the company's controlling shareholder Maoye International Holdings Limited and actual controller Huang Maoru fulfill their promise, which will help the company to expand in North China and East China markets. Maoye International Holdings Limited promised in 2015 that it would transfer its department store assets to Maoye Commercial in priority.
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○Great Walle Assets Management bought shares of Yaxing Chemical to 5 pct limit again to gain controlling stake
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Shenzhen Great Walle Assets Management Co., Ltd, new controlling shareholder of Weifang Yaxing Chemical Co., Ltd. (600319.SH) bought 15,784,500 shares of the company again during May 27 and June 6, accounting for 5 percent of the company's total share capital. With the change in equity, Great Walle Assets Management totally holds 18.6 percent stake in the company.
Comment: Great Walle Assets Management became the controlling shareholder of Yaxing Chemical on May 25 after buying the company's shares through secondary market acquisition to the five percent limit for many times and actual controller of the listed company changed from Li Guibin to Songming. As to this shareholding increase, Great Walle Assets Management indicates that it may continue to increase the shareholding out of demand for investment.
○Actual controller of TongLing Zonfa Trinity Technology changes
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TongLing Zonfa Trinity Technology Co., Ltd. announced that Anhui GooCoo Robot Industry Holding Co., Ltd. transferred its 100 percent stake in Shanghai Hongwang Assets Management Co., Ltd. to Anhui Ruizhen Commercial Management Co., Ltd, making the last company indirectly control 17.09 percent stake in the listed company. Actual controller of TongLing Zonfa Trinity Technology changes from Yuan Qihong to Luo Qifang, Zhou Wenyu and her son. Therefore, the listed company decided to terminate matters on private placement. Ruizhen Commercial Management is fully held by Anhui Ruitai Properties Co., Ltd. under Luo Qifang and Zhou Wenyu. Ruitai Properties is qualified in real estate development.
Shen Yulan, controlling shareholder of Yinbang Clad Material Co., Ltd. (300337.SZ) transferred his 50 million shares of the company (accounting for 6.08 percent of the company's total share capital) to Shan Yu at a price of 6.084 yuan per share. This move aimed to attract Shan as the company's strategic investor. After the deal, Shen Jiansheng and Shen Yulan totally hold 54.17 percent equity in the company; so they are still actual controller and controlling shareholder of the company.
[Trading Trends]
○Cooltech Power bought through 3 institutional seats
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The trading volume ranking list on June 6 shows that Shanghai Cooltech Power Co., Ltd. (300153.SZ) was bought through three institutional seats with a total of 65.16 million yuan, accounting for 15.3 percent of its intraday turnover, and it was sold through one institutional seat with a total of 22.13 million yuan.
Comment: Institutions believe that its subsidiary Fast Star Advanced Power System (Suzhou) Co., Ltd., which is engaged in manufacturing ternary PACK, will benefit from improvement in electric vehicle sales and increase in proportion of ternary battery. In addition, its subsidiary Shanghai Jietai New Energy Vehicle Co., Ltd. is now managing 500 units of electric logistic cars. It is expected to increase the figure to 2,500 and 6,000 in 2016 and 2017 respectively, presenting huge potential for performance growth.
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