[Today's Guide]
○Quantum computation to see important breakthrough, technical application has wide prospect
○Artificial intelligence becomes core drive force to interne
○Scientist found new sealing technology, carbon capture research constantly booms
○Dakang International Farming ＆ Agriculture to acquire Brazilian agricultural products trade assets, Kaishan Compressor introduces private placement
[SSN Focus]
○Quantum computation to see important breakthrough, technical application has wide prospect
------
Media reported that computer scientist of Google Research Lab and physicists from the U.S. and Spain recently developed a quantum computer. It can solve various problems in physics and chemistry fields, including simulation on interaction among several electrons, which required accurate simulation of chemical computer in the past. Based on the developers' introduction, the technology could be a universal algorithm, which can be used in any large quantum computer. At that time, it is possible to simulate the quantum dynamics, and this cannot be done through traditional hardware.
Comment: Institutions pointed out that quantum computer can help the operation of more complicated simulation; quantum information will entirely speed up the industrial upgrading of the fields facing bottleneck due to limited computation capability; and the application prospect is very huge. Among listed companies, Sanlux Co., Ltd. (002224.SZ) announced to build up quantum technology industrial fund in January, focusing on investment for constructing quantum communication mainline network and quantum computation; Huagong Tech Company Limited (000988.SZ) is mainly engaged in the R＆D and popularity of quantum dot laser.
[SSN Selection]
○The executive meeting of the State Council held on June 8 deployed the implementation for heath ＆ poverty alleviation project, and determined to develop and standardize the big data application for health care and medical treatment.
○Qi Bin, director of international cooperation department under the China Securities Regulatory Commission, indicated in the Lujiazui forum on June 12 that effort is being made to boost the feasibility study for Shanghai-London Stock Connect program.
○The year-on-year CPI growth rate in May fell back 0.3 percentage point compared to that in April, and the interviewed expert believed that increasing inflation pressure will continue to ease.
○China Aviation Engine Group Co., Ltd. has recently finished the registration and establishment, with shareholders covering Commercial Aircraft Corporation of China, Ltd. and Aviation Industry Corporation of China, according to Beijing News.
○The film Warcraft sets various records in domestic film history. Data of Maoyan Film shows that, up to the night of June 12, its box office has accumulated over 1 billion yuan.
○Based on the UK public opinion poll disclosed on June 10, "exit-EU" gained 55 percent of supports, and risk avoidance sentiment caused European and American stock market crash and plummet in commodities including crude oil.
TOP
[Industry Information]
○Artificial intelligence becomes core drive force to internet, industry likely to speed up development
------
In the recent 2016 Baidu Union Summit, the company's CEO Li Yanhong indicated that, after PC internet and mobile internet, artificial intelligence becomes the core drive force for the internet development in next step. Currently, the daily amount asking for Baidu voice recognition exceeds 100 million, with accuracy rate of over 97 percent, better than the normal level. Foreign media also reported that Google artificial intelligence has already mastered the extremely-difficulty Atari games.
Comment: With increasing computation capability ＆ data resources and maturing deep learning algorithm, artificial technologies including machine vision, image recognition and natural voice processing are seeing rapid development. The 3-year Action Implementation Scheme for Internet Artificial Intelligence issued in May proposed to form a market scale of 100 billion yuan for artificial intelligence application by 2018. In terms of listed companies, Dawning Information Industry Co., Ltd. (603019.SH) has high performing computation and key storage technology for the R＆D of deep learning software and platform based on NVIDIA Corporation's CPU; human face recognition products of Wisesoft Co., Ltd. (002253.SZ) have already stepped into market popularization phase.
TOP
Scientist found new sealing technology, carbon capture research constantly booms
------
An international science ＆ research team launched its study results on June 9 in the U.S. journal Science. It mixed the carbon dioxide and water, and injected the mixture into basaltic layer hundreds of meters deep under the ground. Less than two years, 95 to 98 percent of the carbon dioxide has been transformed to solid carbonate. Compared to traditional ways, such sealing technology can avoid the emission risk of carbon dioxide which can be widely applied. A power generation plant in the Iceland is carrying out more scaled tests.
Comment: Many countries in the Europe and America regard the carbon capture, utilization and sealing technologies as key point to strive for low-carbon competition advantage. Innovative Action Plan of Energy Technology Reform (2016 to 2030) recently issued by China also lists these innovative technologies as one of the key tasks, and related researches are constantly booming. Sichuan Tianyi Science ＆ Technology Co., Ltd. (600378.SH) participates in the carbon capture project of China Shenhua Energy Company Limited (601088.SH). Spic Yuanda Environmental-Protection Co., Ltd. (600292.SH) possesses technical base for carbon capture project.
TOP
[Announcement Interpretation]
○Dakang International Farming ＆ Agriculture to acquire Brazilian agricultural products trade assets
------
Hunan Dakang International Farming ＆ Agriculture Co., Ltd. (002505.SZ) plans to acquire 100 percent equity of Pengxin Brazil, an overseas subsidiary of the company, from Pengxin Group Co., Ltd. and then acquire 57.57 percent equity of Fiagril Ltda. at 200 million U.S. dollars in cash through Pengxin Brazil. According to commitment of Pengxin Group, Fiagril Ltda. will achieve the average annual EBITDA with no less than 90.943 million U.S. dollars during 2017-2019 fiscal years.
Fiagril Ltda. is one of the major food trade platform in Brazil and the place where it is located is the biggest province producing beans and corns in the country. After the deal is done, the company will expand its new agricultural products trade and other businesses to Brazil market.
○Kaishan Compressor raises RMB2 bln to invest in Indonesian geothermal power generation project
------
Zhejiang Kaishan Compressor Co., Ltd. (300257.SZ) plans to raise 2 billion yuan by issuing 120 million shares through private placement to invest in SMGP 240MW geothermal power generation project in Indonesia. Indonesia ranks the third in the world in terms of capacity and capability of geothermal power generation.
○Senyuan Electric and Sinoma International Engineering receive orders from foreign companies
------
Henan Senyuan Electric Co., Ltd. (002358.SZ) gains orders from second phase of 60MWp PV power station construction project of Ruzhou Xintai Photovoltaic Power Technological Development Company. The project is expected to complete on Sept. 30. The contract amount values 516 million yuan, accounting for 31 percent of the company's operating revenue in 2015.
Chengdu Design and Research Institute of Building Materials Industry Co., Ltd., a wholly-owned subsidiary of Sinoma International Engineering Co., Ltd. (600970.SH), signed contracts for construction projects of a plant with daily 6,000 tons of clinker cement with Egypt. The contract amount values 1.053 million euros (equivalent to 7.845 million yuan), accounting for 35 percent of the company's operating revenue in 2015.
○Reorganization proposals of Great Wall Of Culture Group Holding and Baihuacun approved
------
Proposal on purchasing assets through issuing shares and other reorganization matters of The Great Wall Of Culture Group Holding Co., Ltd. Guangdong (300089.SZ) and Xinjiang Baihuacun Co., Ltd. (600721.SH) were approved by China Securities Regulatory Commission with condition.
[Financial Reports Express]
○Nanshan Aluminium proposes high share conversion and dividend
------
Shandong Nanshan Aluminium Co., Ltd. (600219.SH) adjusted its 2015 distribution plan to a 15-for-10 conversion of capital surplus into shares combined with 1 yuan dividend for every 10 shares.
[Trading Trends]
○BDStar Navigation bought through 3 institutional seats
------
The trading volume ranking list on June 8 shows that Beijing BDStar Navigation Co., Ltd. (002151.SZ) was bought through three institutional seats with a total of 60.1 million yuan, accounting for 7 percent of its intraday turnover, and it was sold by one institutional seat with a total of 9.75 million yuan.
Comment: Recently the company gained approval on private placement, which is expected to start. According to the proposal, the company will raise funds from "big fund" to invest in Beidou chips and its application field. The "big fund" is the national investment fund in integrated circuit industry under the Ministry of Finance, whose subscription amount will not be more than 1.5 billion yuan. Another two subscription consignors are the company's actual controller and senior managers.
[Trading Alarms]
○Weiguang Electronic to launch IPO on June 13
------
Hangzhou Weiguang Electronic Co., Ltd. (002801.SZ) will launch IPO at a price of 19.51 yuan per share with an upper subscription limit of 14,500 shares for each account. The PE ratio is 15 times. The company is engaged in micro-motor and fan.
[Weekly Review]
○Terrifying waves and undercurrent
------
With market expectation that A shares might be included in MSCI, stock indexes have embraced a small rebound since late May. As the final result will be revealed on June 15 (Beijing time), such a view is prevailing in the market that the rebound will continue if the A shares are finally included in MSCI; otherwise, the rebound will end and even dip to the bottom in a faster pace.
In fact, however, focus event might not give rise to disturbance and market sentiment might not show extremes of optimism and pessimism. Taking the recent trading resumption of Leshi Internet Information ＆ Technology Corp., Beijing (300104.SZ) for example, some people think that the company's stock price will drop by the daily limit of 10 percent continuously or may even drag down the whole market; while others think that it will show single-day reverse since the company was involved in hotspot concepts during the period of trading suspension. The result was that the company's stock price fell by the daily limit of 10 percent but recovered for many times on the first day of trading resumption, and it pulled back with decreased turnover in the following trading days.
What can be expected is not black swan. No matter whether the A shares will be included in MSCI or not, the market has been poised. Stock indexes fluctuating in a narrow range before the Dragon Boat Festival reflected the cautiousness of investors. Regardless MSCI, the continuous foreign capital inflow, appropriate adjustment of individual shares and slowdown in interest rate hike by the U.S. Federal Reserve back up the rebound to some extent.
It is inevitable for the stocks to experience storms in the market. The essence of good information does not lie in predicting future storms but devoting to make investors to feel undercurrent of the market. We reported acceleration in state-owned asset reform in Chongqing Municipality and China and Germany deepening manufacturing before the holiday, which have received sound feedback from the market and also reveals that opportunities in local regions have gradually gained attentions from capitals.
TOP
○Quantum computation to see important breakthrough, technical application has wide prospect
○Artificial intelligence becomes core drive force to interne
○Scientist found new sealing technology, carbon capture research constantly booms
○Dakang International Farming ＆ Agriculture to acquire Brazilian agricultural products trade assets, Kaishan Compressor introduces private placement
[SSN Focus]
○Quantum computation to see important breakthrough, technical application has wide prospect
------
Media reported that computer scientist of Google Research Lab and physicists from the U.S. and Spain recently developed a quantum computer. It can solve various problems in physics and chemistry fields, including simulation on interaction among several electrons, which required accurate simulation of chemical computer in the past. Based on the developers' introduction, the technology could be a universal algorithm, which can be used in any large quantum computer. At that time, it is possible to simulate the quantum dynamics, and this cannot be done through traditional hardware.
Comment: Institutions pointed out that quantum computer can help the operation of more complicated simulation; quantum information will entirely speed up the industrial upgrading of the fields facing bottleneck due to limited computation capability; and the application prospect is very huge. Among listed companies, Sanlux Co., Ltd. (002224.SZ) announced to build up quantum technology industrial fund in January, focusing on investment for constructing quantum communication mainline network and quantum computation; Huagong Tech Company Limited (000988.SZ) is mainly engaged in the R＆D and popularity of quantum dot laser.
[SSN Selection]
○The executive meeting of the State Council held on June 8 deployed the implementation for heath ＆ poverty alleviation project, and determined to develop and standardize the big data application for health care and medical treatment.
○Qi Bin, director of international cooperation department under the China Securities Regulatory Commission, indicated in the Lujiazui forum on June 12 that effort is being made to boost the feasibility study for Shanghai-London Stock Connect program.
○The year-on-year CPI growth rate in May fell back 0.3 percentage point compared to that in April, and the interviewed expert believed that increasing inflation pressure will continue to ease.
○China Aviation Engine Group Co., Ltd. has recently finished the registration and establishment, with shareholders covering Commercial Aircraft Corporation of China, Ltd. and Aviation Industry Corporation of China, according to Beijing News.
○The film Warcraft sets various records in domestic film history. Data of Maoyan Film shows that, up to the night of June 12, its box office has accumulated over 1 billion yuan.
○Based on the UK public opinion poll disclosed on June 10, "exit-EU" gained 55 percent of supports, and risk avoidance sentiment caused European and American stock market crash and plummet in commodities including crude oil.
TOP
[Industry Information]
○Artificial intelligence becomes core drive force to internet, industry likely to speed up development
------
In the recent 2016 Baidu Union Summit, the company's CEO Li Yanhong indicated that, after PC internet and mobile internet, artificial intelligence becomes the core drive force for the internet development in next step. Currently, the daily amount asking for Baidu voice recognition exceeds 100 million, with accuracy rate of over 97 percent, better than the normal level. Foreign media also reported that Google artificial intelligence has already mastered the extremely-difficulty Atari games.
Comment: With increasing computation capability ＆ data resources and maturing deep learning algorithm, artificial technologies including machine vision, image recognition and natural voice processing are seeing rapid development. The 3-year Action Implementation Scheme for Internet Artificial Intelligence issued in May proposed to form a market scale of 100 billion yuan for artificial intelligence application by 2018. In terms of listed companies, Dawning Information Industry Co., Ltd. (603019.SH) has high performing computation and key storage technology for the R＆D of deep learning software and platform based on NVIDIA Corporation's CPU; human face recognition products of Wisesoft Co., Ltd. (002253.SZ) have already stepped into market popularization phase.
TOP
Scientist found new sealing technology, carbon capture research constantly booms
------
An international science ＆ research team launched its study results on June 9 in the U.S. journal Science. It mixed the carbon dioxide and water, and injected the mixture into basaltic layer hundreds of meters deep under the ground. Less than two years, 95 to 98 percent of the carbon dioxide has been transformed to solid carbonate. Compared to traditional ways, such sealing technology can avoid the emission risk of carbon dioxide which can be widely applied. A power generation plant in the Iceland is carrying out more scaled tests.
Comment: Many countries in the Europe and America regard the carbon capture, utilization and sealing technologies as key point to strive for low-carbon competition advantage. Innovative Action Plan of Energy Technology Reform (2016 to 2030) recently issued by China also lists these innovative technologies as one of the key tasks, and related researches are constantly booming. Sichuan Tianyi Science ＆ Technology Co., Ltd. (600378.SH) participates in the carbon capture project of China Shenhua Energy Company Limited (601088.SH). Spic Yuanda Environmental-Protection Co., Ltd. (600292.SH) possesses technical base for carbon capture project.
TOP
[Announcement Interpretation]
○Dakang International Farming ＆ Agriculture to acquire Brazilian agricultural products trade assets
------
Hunan Dakang International Farming ＆ Agriculture Co., Ltd. (002505.SZ) plans to acquire 100 percent equity of Pengxin Brazil, an overseas subsidiary of the company, from Pengxin Group Co., Ltd. and then acquire 57.57 percent equity of Fiagril Ltda. at 200 million U.S. dollars in cash through Pengxin Brazil. According to commitment of Pengxin Group, Fiagril Ltda. will achieve the average annual EBITDA with no less than 90.943 million U.S. dollars during 2017-2019 fiscal years.
Fiagril Ltda. is one of the major food trade platform in Brazil and the place where it is located is the biggest province producing beans and corns in the country. After the deal is done, the company will expand its new agricultural products trade and other businesses to Brazil market.
○Kaishan Compressor raises RMB2 bln to invest in Indonesian geothermal power generation project
------
Zhejiang Kaishan Compressor Co., Ltd. (300257.SZ) plans to raise 2 billion yuan by issuing 120 million shares through private placement to invest in SMGP 240MW geothermal power generation project in Indonesia. Indonesia ranks the third in the world in terms of capacity and capability of geothermal power generation.
○Senyuan Electric and Sinoma International Engineering receive orders from foreign companies
------
Henan Senyuan Electric Co., Ltd. (002358.SZ) gains orders from second phase of 60MWp PV power station construction project of Ruzhou Xintai Photovoltaic Power Technological Development Company. The project is expected to complete on Sept. 30. The contract amount values 516 million yuan, accounting for 31 percent of the company's operating revenue in 2015.
Chengdu Design and Research Institute of Building Materials Industry Co., Ltd., a wholly-owned subsidiary of Sinoma International Engineering Co., Ltd. (600970.SH), signed contracts for construction projects of a plant with daily 6,000 tons of clinker cement with Egypt. The contract amount values 1.053 million euros (equivalent to 7.845 million yuan), accounting for 35 percent of the company's operating revenue in 2015.
○Reorganization proposals of Great Wall Of Culture Group Holding and Baihuacun approved
------
Proposal on purchasing assets through issuing shares and other reorganization matters of The Great Wall Of Culture Group Holding Co., Ltd. Guangdong (300089.SZ) and Xinjiang Baihuacun Co., Ltd. (600721.SH) were approved by China Securities Regulatory Commission with condition.
[Financial Reports Express]
○Nanshan Aluminium proposes high share conversion and dividend
------
Shandong Nanshan Aluminium Co., Ltd. (600219.SH) adjusted its 2015 distribution plan to a 15-for-10 conversion of capital surplus into shares combined with 1 yuan dividend for every 10 shares.
[Trading Trends]
○BDStar Navigation bought through 3 institutional seats
------
The trading volume ranking list on June 8 shows that Beijing BDStar Navigation Co., Ltd. (002151.SZ) was bought through three institutional seats with a total of 60.1 million yuan, accounting for 7 percent of its intraday turnover, and it was sold by one institutional seat with a total of 9.75 million yuan.
Comment: Recently the company gained approval on private placement, which is expected to start. According to the proposal, the company will raise funds from "big fund" to invest in Beidou chips and its application field. The "big fund" is the national investment fund in integrated circuit industry under the Ministry of Finance, whose subscription amount will not be more than 1.5 billion yuan. Another two subscription consignors are the company's actual controller and senior managers.
[Trading Alarms]
○Weiguang Electronic to launch IPO on June 13
------
Hangzhou Weiguang Electronic Co., Ltd. (002801.SZ) will launch IPO at a price of 19.51 yuan per share with an upper subscription limit of 14,500 shares for each account. The PE ratio is 15 times. The company is engaged in micro-motor and fan.
[Weekly Review]
○Terrifying waves and undercurrent
------
With market expectation that A shares might be included in MSCI, stock indexes have embraced a small rebound since late May. As the final result will be revealed on June 15 (Beijing time), such a view is prevailing in the market that the rebound will continue if the A shares are finally included in MSCI; otherwise, the rebound will end and even dip to the bottom in a faster pace.
In fact, however, focus event might not give rise to disturbance and market sentiment might not show extremes of optimism and pessimism. Taking the recent trading resumption of Leshi Internet Information ＆ Technology Corp., Beijing (300104.SZ) for example, some people think that the company's stock price will drop by the daily limit of 10 percent continuously or may even drag down the whole market; while others think that it will show single-day reverse since the company was involved in hotspot concepts during the period of trading suspension. The result was that the company's stock price fell by the daily limit of 10 percent but recovered for many times on the first day of trading resumption, and it pulled back with decreased turnover in the following trading days.
What can be expected is not black swan. No matter whether the A shares will be included in MSCI or not, the market has been poised. Stock indexes fluctuating in a narrow range before the Dragon Boat Festival reflected the cautiousness of investors. Regardless MSCI, the continuous foreign capital inflow, appropriate adjustment of individual shares and slowdown in interest rate hike by the U.S. Federal Reserve back up the rebound to some extent.
It is inevitable for the stocks to experience storms in the market. The essence of good information does not lie in predicting future storms but devoting to make investors to feel undercurrent of the market. We reported acceleration in state-owned asset reform in Chongqing Municipality and China and Germany deepening manufacturing before the holiday, which have received sound feedback from the market and also reveals that opportunities in local regions have gradually gained attentions from capitals.
TOP
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