[Today's Guide]
○ A maximum of 30 pct of occupational annuities can invest in stock market, A-share market to see new capitals
○ NDRC to call in six rare earth groups to prepare for state reserve
○ Breakthroughs made in engine materials, high-temperature alloys to catch more attention
○ C＆Y Pharm. To buy Powerdone Pharm., Weichai Power to acquire overseas firm
[SSN Focus]
○ A maximum of 30 pct of occupational annuities can invest in stock market, A-share market to see new capitals
------
The Interim Regulation on the Management of Occupational Annuity Funds drafted by the Ministry of Human Resources and Social Security and the Ministry of Finance is seeking public opinions from June 21. The draft for opinions proposes that the proportion of occupational annuities invested in stocks, stock funds, mixed funds and stock-based pension products shall be no more than 30 percent of the net value of the investment portfolio.
Comment: The reform in the pension insurance of public institutes initiated in 2015. Experts interviewed believe that the occupational annuities will bring limited new capitals in the stock market in short term. But in the long run, it enjoys a huge potential. The occupational annuities of public institutes are investment capitals, which will facilitate the long-term stable development of the stock market.
[SSN Selection]
○ The central bank proposed in its interim report that it will orderly achieve the RMB capital account convertibility and further promote the two-way opening of the capital market.
○ The Ministry of Agriculture held a meeting on initiating the special pilot on deepening reclamation reform on June 21, requiring focusing on making the reclamation larger, stronger and better.
○ The China International OLEDs Summit 2016 will kick off June 30. It is the first large high-end OLED symposium.
○ The securities margin recorded a net inflow of 5.6 billion yuan last week, ending the net outflow for four consecutive weeks.
TOP
[Industry Information]
○ NDRC to call in six rare earth groups to prepare for state reserve
------
SSN learnt that the National Development and Reform Commission (NDRC) will hold a meeting with six rare earth groups (Aluminum Corporation of China, China Northern Rare Earth(group)High-tech Co., Ltd. (600111.SH), Xiamen Tungsten Co., Ltd. (600549.SH), China Minmetals Corporation, Guangdong Rare Earth Group and South Rare Earth Group) soon. It is reported that high-level leaders of such enterprises will participate at the meeting. The market expects that more policies on the industry will be released.
Comment: As a result of the low prices, the nine categories for bidding all failed at the meeting for the state reserve of rare earth held on June 7. The meeting will continue to discuss the acquisition for reserve and may seek the intention and bottom prices of all parties to lay a foundation for next bidding for state reserve. Based on the conditions in recent years, the prices of dominant varieties of rare earths hiked 40 to 100 percent thanks to the acquisition for reserve in 2012. In terms of listed companies, Rising Nonferrous Metals Share Co., Ltd. (600259.SH) and Xiamen Tungsten are leaders in the industry.
TOP
○ Breakthroughs made in engine materials, high-temperature alloys to catch more attention
------
Xinhua News Agency reported that Nanjing University of Science and Technology held a press conference on June 21, announcing that the high-temperature PST titanium aluminum single crystal developed by the team headed by professor Chen Guang improves the temperature capability by 150 to 250℃, making a significant breakthrough in the materials for engines. It is reported that the major material for engine blades is nickel base single crystal high-temperature alloys. An improvement in temperature capability by 25 to 30℃ will result in a generation of new alloys. The aero-engine is known as the heart of aircraft. The temperature capability of its blades, the core component, determines the performance of engines.
Comment: The research reports of Shenwan Hongyuan Group Co., Ltd. (000166.SZ) believe that with the establishment of China Aero-Engine Group and the implementation of the special programs on aero-engines and gas turbines, the research and development aero-engines is expected to obtain a special subsidy of 100 billion yuan for 10 years. The market of the global airline and the high-temperature alloys and blades for gas turbines will reach 175 billion yuan per year. Among listed companies, Baoji Titanium Industry Co., Ltd. (600456.SH) and Western Metal Materials Co., Ltd. (002149.SZ) are engaged in the production and processing of titanium alloys and titanium materials. Wedge Industrial Co., Ltd. (000534.SZ) established a team with GE high-temperature experts as the core. The products developed have been supplied to the Aviation Industry Corporation of China.
○ NDRC to reduce logistics cost, intelligent logistics to be important orientation
------
www.gov.cn released a plan on building a good market environment to promote the integrated development of transportation and logistics prepared by the National Development and Reform Commission (NDRC) on June 21. It proposes to preliminarily establish an open and sharing transportation and logistics system in 2018. The Internet, big data and cloud computing will be used more widely. The road ports and intelligent delivery will be orderly promoted and the proportion of total logistics expenses in GDP will reduce by over one percentage point from 2015.
Comment: The proportion of total logistics expenses in GDP was 16.6 percent in 2015 compared with about 9 percent in developed countries. It enjoys huge potential in reducing. The adoption of intelligent logistics technologies will reduce the labor cost and reduce inventory pressure. Institutes are rosy about the O2O logistics IT application, automatic storage, automatic delivery and other specific industries.
TOP
[Announcement Interpretation]
○ C＆Y Pharm. to raise RMB3.1 bln to buy Powerdone Pharm.
------
Shanxi C＆Y Pharmaceutical Group Co.,Ltd.(300254.SZ) proposes to raise 3.1 billion yuan through private placement to acquire 100 percent equities of Shanxi Powerdone Pharmaceutics Co., Ltd. held by Harbin Gloria Pharmaceuticals Co., Ltd. (002437.SZ). Wen Zhanguo, one of the actual controllers of the company, promises to subscribe no less than 30 percent shares.
Powerdone Pharmaceutics is engaged in the research, development and sales of chemical medicine and combinations of traditional Chinese medicine and western medicine. It garnered a net profit of 208 million yuan in 2015. The deal will enhance the listed company's strength in the fields of heart and cerebral vessels, antineoplastic, anti-infection and nutrients.
○ Weichai Power to acquire overseas firm for USD2.1 bln, to expand logistic and supply chain market
------
Kion Group AG, a overseas subsidiary ofWeichai PowerCo., Ltd. (000338.SZ; 02339.HK), proposes to acquire all shares of DH Services Luxembourg and shares of its subsidiaries for about 2.1 billion U.S. Dollars. The target company offers automation solutions and provides optimization service in the logistics and supply chain field.
Weichai Power indicated that after the acquisition, Kion will become a world leading company in the forklift and equipment manufacturing sector and the advanced materials handling sector. This will help the company's position in North America and other regions across the globe.
○ Salt Lake Industry and BYD work together to develop lithium resources in salt lakes
------
Qinghai Salt Lake Industry Co., Ltd. (000792.SZ) and BYD Company Limited (002594.SZ; 01211.SZ) announced that they have signed a trilateral cooperation framework agreement with Shenzhen Hongdatong Industry Co., Ltd. The three parties will conduct strategic cooperation in the development of lithium resources in salt lakes and will set up a new limited liability company which will specialize in the development, processing and sales of salt lake resources. Salt Lake Industry will account for 49.5 percent of the new company's registration capital; and BYD will account for 48 perent.
○ Jiuding New Material, Keda Clean Energy and Digital China launch employee shareholding plans
------
JiangsuJiuding New MaterialCo., Ltd. (002201.SZ) plans to raise a maximum of 50 million yuan via employee shareholding plan to subscribe secondary shares in "Everbright Asset ManagementJiuding New Material No. 1 aggregate asset management plan". The upper limit of the asset management plan is 150 million yuan. Given that the stock price of Jiuding New Material closed at 12.81 yuan per share on June 17, it can buy an upper limit of 11.71 million shares in the asset management plan, accounting for 4.58 percent of the company's share capital.
Keda Clean Energy Co., Ltd. (600499.SH) launches employee shareholding planwith a total amount of no more than 87 million yuan. Given that the company's latest stock price closed at 16.06 yuan per share , the plan can buy about 5.4 million shares in the company.
Digital China Group Co., Ltd. (000034.SZ) plans to raise 419 million yuan by issuing 26,643,400 shares at 15.73 yuan per share to 6 investors, including CITIC Construction Investment Fund (employee shareholding plan), its actual controller Guo Wei, board director Guo Jiang and others. The proceeds will be used to repay bank loans t improve its asset-liability ratio and relief its burden in interest expenses.
○ Jinggong Science ＆ Technology and Goldwind Science ＆ Technology won big orders
------
Zhejiang Jinggong Science ＆ Technology Co., Ltd. (002006.SZ) won the bidding of 107 ingot furnace purchasing project of Jiangsu Xiexin Silicon Material Technology Development Co., Ltd. For 199.5 million yuan, accounting for about 26 percent of the company's audited operation revenue in 2015. Xinjiang Goldwind Science ＆ Technology Co., Ltd. (002202.SZ; 02208.HK) signed several dynamo purchasing contracts with companies under CRRC Corporation Limited (601766.SH; 01766.HK). The total contract price is valued at about 8,273 million yuan, accounting for about 28 percent of the company's operation revenue in 2015.
[Financial Reports Express]
○ Ideal Group proposes high share conversion and dividend in semiyearly report
------
The controlling shareholder of Lianyungang Ideal Group Co., Ltd. (000626.SZ) proposes a 10-for-10 conversion of capital surplus into shares combined with 3.33 yuan dividend in its semiyearly report.
○ Inesa Intelligent Tech forecasts growth for H1
------
Inesa Intelligent Tech Inc. (600602.SH) forecasts a growth of over 95 percent in the first half year mainly due to its integration of quality assets.
[Trading Trends]
○ Three institutions bought Jincheng Paper
------
The trading volume ranking list on June 21 showed that Jincheng Paper Co.,Ltd. (000820.SZ) was bought by three institutions with a total amount of 21.04 million yuan, accounting for 7.7 percent of its intraday turnover.
Comment: Jiangsu Province Metallurgy Design Institute Co., Ltd. plans to go backdoor listing via Jincheng Paper. Its reorganization plan was submitted to the China Securities Regulatory Commission (CSRC) for a second time after the CSRC canceled requirements for supporting funds and was now unconditionally approved by the CSRC. According to its performance commitment in the new plan, the net profit after excluding the extraordinary gains or losses of Jiangsu Province Metallurgy Design Institute attributing to the parent company will be no less than 300 million, 400 million and 500 million yuan.
[Trading Alarm]
○ Linglong Tire to debut IPO on June 22
------
Shandong Linglong Tire Co., Ltd. (780966) will offer shares at 12.98 yuan per share with an upper limit of 60,000 shares for each applicant. The company's PE ratio is 23 times.
TOP
○ A maximum of 30 pct of occupational annuities can invest in stock market, A-share market to see new capitals
○ NDRC to call in six rare earth groups to prepare for state reserve
○ Breakthroughs made in engine materials, high-temperature alloys to catch more attention
○ C＆Y Pharm. To buy Powerdone Pharm., Weichai Power to acquire overseas firm
[SSN Focus]
○ A maximum of 30 pct of occupational annuities can invest in stock market, A-share market to see new capitals
------
The Interim Regulation on the Management of Occupational Annuity Funds drafted by the Ministry of Human Resources and Social Security and the Ministry of Finance is seeking public opinions from June 21. The draft for opinions proposes that the proportion of occupational annuities invested in stocks, stock funds, mixed funds and stock-based pension products shall be no more than 30 percent of the net value of the investment portfolio.
Comment: The reform in the pension insurance of public institutes initiated in 2015. Experts interviewed believe that the occupational annuities will bring limited new capitals in the stock market in short term. But in the long run, it enjoys a huge potential. The occupational annuities of public institutes are investment capitals, which will facilitate the long-term stable development of the stock market.
[SSN Selection]
○ The central bank proposed in its interim report that it will orderly achieve the RMB capital account convertibility and further promote the two-way opening of the capital market.
○ The Ministry of Agriculture held a meeting on initiating the special pilot on deepening reclamation reform on June 21, requiring focusing on making the reclamation larger, stronger and better.
○ The China International OLEDs Summit 2016 will kick off June 30. It is the first large high-end OLED symposium.
○ The securities margin recorded a net inflow of 5.6 billion yuan last week, ending the net outflow for four consecutive weeks.
TOP
[Industry Information]
○ NDRC to call in six rare earth groups to prepare for state reserve
------
SSN learnt that the National Development and Reform Commission (NDRC) will hold a meeting with six rare earth groups (Aluminum Corporation of China, China Northern Rare Earth(group)High-tech Co., Ltd. (600111.SH), Xiamen Tungsten Co., Ltd. (600549.SH), China Minmetals Corporation, Guangdong Rare Earth Group and South Rare Earth Group) soon. It is reported that high-level leaders of such enterprises will participate at the meeting. The market expects that more policies on the industry will be released.
Comment: As a result of the low prices, the nine categories for bidding all failed at the meeting for the state reserve of rare earth held on June 7. The meeting will continue to discuss the acquisition for reserve and may seek the intention and bottom prices of all parties to lay a foundation for next bidding for state reserve. Based on the conditions in recent years, the prices of dominant varieties of rare earths hiked 40 to 100 percent thanks to the acquisition for reserve in 2012. In terms of listed companies, Rising Nonferrous Metals Share Co., Ltd. (600259.SH) and Xiamen Tungsten are leaders in the industry.
TOP
○ Breakthroughs made in engine materials, high-temperature alloys to catch more attention
------
Xinhua News Agency reported that Nanjing University of Science and Technology held a press conference on June 21, announcing that the high-temperature PST titanium aluminum single crystal developed by the team headed by professor Chen Guang improves the temperature capability by 150 to 250℃, making a significant breakthrough in the materials for engines. It is reported that the major material for engine blades is nickel base single crystal high-temperature alloys. An improvement in temperature capability by 25 to 30℃ will result in a generation of new alloys. The aero-engine is known as the heart of aircraft. The temperature capability of its blades, the core component, determines the performance of engines.
Comment: The research reports of Shenwan Hongyuan Group Co., Ltd. (000166.SZ) believe that with the establishment of China Aero-Engine Group and the implementation of the special programs on aero-engines and gas turbines, the research and development aero-engines is expected to obtain a special subsidy of 100 billion yuan for 10 years. The market of the global airline and the high-temperature alloys and blades for gas turbines will reach 175 billion yuan per year. Among listed companies, Baoji Titanium Industry Co., Ltd. (600456.SH) and Western Metal Materials Co., Ltd. (002149.SZ) are engaged in the production and processing of titanium alloys and titanium materials. Wedge Industrial Co., Ltd. (000534.SZ) established a team with GE high-temperature experts as the core. The products developed have been supplied to the Aviation Industry Corporation of China.
○ NDRC to reduce logistics cost, intelligent logistics to be important orientation
------
www.gov.cn released a plan on building a good market environment to promote the integrated development of transportation and logistics prepared by the National Development and Reform Commission (NDRC) on June 21. It proposes to preliminarily establish an open and sharing transportation and logistics system in 2018. The Internet, big data and cloud computing will be used more widely. The road ports and intelligent delivery will be orderly promoted and the proportion of total logistics expenses in GDP will reduce by over one percentage point from 2015.
Comment: The proportion of total logistics expenses in GDP was 16.6 percent in 2015 compared with about 9 percent in developed countries. It enjoys huge potential in reducing. The adoption of intelligent logistics technologies will reduce the labor cost and reduce inventory pressure. Institutes are rosy about the O2O logistics IT application, automatic storage, automatic delivery and other specific industries.
TOP
[Announcement Interpretation]
○ C＆Y Pharm. to raise RMB3.1 bln to buy Powerdone Pharm.
------
Shanxi C＆Y Pharmaceutical Group Co.,Ltd.(300254.SZ) proposes to raise 3.1 billion yuan through private placement to acquire 100 percent equities of Shanxi Powerdone Pharmaceutics Co., Ltd. held by Harbin Gloria Pharmaceuticals Co., Ltd. (002437.SZ). Wen Zhanguo, one of the actual controllers of the company, promises to subscribe no less than 30 percent shares.
Powerdone Pharmaceutics is engaged in the research, development and sales of chemical medicine and combinations of traditional Chinese medicine and western medicine. It garnered a net profit of 208 million yuan in 2015. The deal will enhance the listed company's strength in the fields of heart and cerebral vessels, antineoplastic, anti-infection and nutrients.
○ Weichai Power to acquire overseas firm for USD2.1 bln, to expand logistic and supply chain market
------
Kion Group AG, a overseas subsidiary ofWeichai PowerCo., Ltd. (000338.SZ; 02339.HK), proposes to acquire all shares of DH Services Luxembourg and shares of its subsidiaries for about 2.1 billion U.S. Dollars. The target company offers automation solutions and provides optimization service in the logistics and supply chain field.
Weichai Power indicated that after the acquisition, Kion will become a world leading company in the forklift and equipment manufacturing sector and the advanced materials handling sector. This will help the company's position in North America and other regions across the globe.
○ Salt Lake Industry and BYD work together to develop lithium resources in salt lakes
------
Qinghai Salt Lake Industry Co., Ltd. (000792.SZ) and BYD Company Limited (002594.SZ; 01211.SZ) announced that they have signed a trilateral cooperation framework agreement with Shenzhen Hongdatong Industry Co., Ltd. The three parties will conduct strategic cooperation in the development of lithium resources in salt lakes and will set up a new limited liability company which will specialize in the development, processing and sales of salt lake resources. Salt Lake Industry will account for 49.5 percent of the new company's registration capital; and BYD will account for 48 perent.
○ Jiuding New Material, Keda Clean Energy and Digital China launch employee shareholding plans
------
JiangsuJiuding New MaterialCo., Ltd. (002201.SZ) plans to raise a maximum of 50 million yuan via employee shareholding plan to subscribe secondary shares in "Everbright Asset ManagementJiuding New Material No. 1 aggregate asset management plan". The upper limit of the asset management plan is 150 million yuan. Given that the stock price of Jiuding New Material closed at 12.81 yuan per share on June 17, it can buy an upper limit of 11.71 million shares in the asset management plan, accounting for 4.58 percent of the company's share capital.
Keda Clean Energy Co., Ltd. (600499.SH) launches employee shareholding planwith a total amount of no more than 87 million yuan. Given that the company's latest stock price closed at 16.06 yuan per share , the plan can buy about 5.4 million shares in the company.
Digital China Group Co., Ltd. (000034.SZ) plans to raise 419 million yuan by issuing 26,643,400 shares at 15.73 yuan per share to 6 investors, including CITIC Construction Investment Fund (employee shareholding plan), its actual controller Guo Wei, board director Guo Jiang and others. The proceeds will be used to repay bank loans t improve its asset-liability ratio and relief its burden in interest expenses.
○ Jinggong Science ＆ Technology and Goldwind Science ＆ Technology won big orders
------
Zhejiang Jinggong Science ＆ Technology Co., Ltd. (002006.SZ) won the bidding of 107 ingot furnace purchasing project of Jiangsu Xiexin Silicon Material Technology Development Co., Ltd. For 199.5 million yuan, accounting for about 26 percent of the company's audited operation revenue in 2015. Xinjiang Goldwind Science ＆ Technology Co., Ltd. (002202.SZ; 02208.HK) signed several dynamo purchasing contracts with companies under CRRC Corporation Limited (601766.SH; 01766.HK). The total contract price is valued at about 8,273 million yuan, accounting for about 28 percent of the company's operation revenue in 2015.
[Financial Reports Express]
○ Ideal Group proposes high share conversion and dividend in semiyearly report
------
The controlling shareholder of Lianyungang Ideal Group Co., Ltd. (000626.SZ) proposes a 10-for-10 conversion of capital surplus into shares combined with 3.33 yuan dividend in its semiyearly report.
○ Inesa Intelligent Tech forecasts growth for H1
------
Inesa Intelligent Tech Inc. (600602.SH) forecasts a growth of over 95 percent in the first half year mainly due to its integration of quality assets.
[Trading Trends]
○ Three institutions bought Jincheng Paper
------
The trading volume ranking list on June 21 showed that Jincheng Paper Co.,Ltd. (000820.SZ) was bought by three institutions with a total amount of 21.04 million yuan, accounting for 7.7 percent of its intraday turnover.
Comment: Jiangsu Province Metallurgy Design Institute Co., Ltd. plans to go backdoor listing via Jincheng Paper. Its reorganization plan was submitted to the China Securities Regulatory Commission (CSRC) for a second time after the CSRC canceled requirements for supporting funds and was now unconditionally approved by the CSRC. According to its performance commitment in the new plan, the net profit after excluding the extraordinary gains or losses of Jiangsu Province Metallurgy Design Institute attributing to the parent company will be no less than 300 million, 400 million and 500 million yuan.
[Trading Alarm]
○ Linglong Tire to debut IPO on June 22
------
Shandong Linglong Tire Co., Ltd. (780966) will offer shares at 12.98 yuan per share with an upper limit of 60,000 shares for each applicant. The company's PE ratio is 23 times.
TOP
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