[Today's Guide]
○ Long March-7 carrier rocket to have maiden flight, aviation and military industry frequently driven by events
○ State General Administration of Sport to introduce mass fitness plan, Tight supply and solid demand drive price of butadiene up 8 pct
○ Asia-Pacific Light Alloy Technology to expand new energy vehicle industry, restructuring of J＆R Fire Protection and Guanhao Biotech approved
○ Substantial shareholder of Landscape Culture Communication to transfer equity, Tsinghua Unigroup subsidiaries bought shares of Zonfa Trinity Technology to the threshold for placarded acquisition again
[SSN Focus]
○Long March-7 carrier rocket to have maiden flight, aviation and military industry frequently driven by events
------
The movable launch platform for Long March-7 carrier rocket has been successfully transported to the launch pad on June 22 morning, and the rocket is planned to be launched at proper timing during June 25-29. It will be first launch carried out by the Wenchang Satellite Launch Center in Hainan province after it is built. The Long March-7 carrier rocket is a new-generation one with the application of new technologies like liquid oxygen/kerosene rocket engine, and it can also be used to launch man-made satellites and etc.
Comment: The aviation and military industry is frequently driven by various events in recent period, such as the issuance of the China BeiDou Navigation Satellite System White Book, the delivery ceremony of the first batch of Xian Y-20 large military transport aircrafts and the approaching Army Day. Past experiences show that military index usually sees large possibility of outperforming in one month before the Army Day, as believed by the public and private funds being surveyed. To win the war of informatization, the investment in informatization for national defense must catch up. Institutions are optimistic about BeiDou navigation system, aero-engine and new military materials like high-temperature alloy.
TOP
[SSN Selection]
○ The executive meeting of the State Council held on June 22 focused on promoting private investment, and putting forward countermeasures for problems like market access as well as the difficulties and high costs in financing.
○ When attending the board meeting of the World Federation of Exchanges (WFE), Liu Shiyu, chairman of the China Securities Regulatory Commission, pointed out that China's capital market will pay more attention to legal system construction during the 13th five-year plan period
○ The south-bound trading of the Shanghai-Hong Kong Stock Connect program saw a net inflow of 3 billion yuan on June 22, setting a new high in nearly 14 months; several Hong Kong stocks-based ETFs saw large amount of net subscription in recent days.
○ The Monetary Authority of Singapore includes RMB investments as part of its official foreign exchange reserves, indicating that it recognizes the steady and calibrated liberalization of China's financial markets.
○ The Shenzhen Stock Exchange issued a reorganization inquiry to China Vanke Co., Ltd. (000002.SZ) on June 22, requiring Vanke to submit explanation materials before June 24.
TOP
[Industry Information]
○ State General Administration of Sport to introduce mass fitness plan, pro-growth policies to boost industry
------
It is said on the website of the State Council Information Office that a press conference will be held at 10:00 am on June 23 with Liu Peng, director of the State General Administration of Sport of China, introducing the Mass Fitness Plan (2016-2020) and taking journalists' questions. The State General Administration of Sport rolled out China's 13th five-year (2016-2020) sports development plan in May, proposing goals including that by 2020, 435 million people take regular exercises, the sports areas per capita reaches 1.8 square meters and the overall size of the sports industry exceeds 3 trillion yuan.
Comment: Guotai Junan Securities believes that the sports industry has been lifted to a national strategy level. As administration is streamlined and power is delegated to the lower levels, core resources like the running of events, the operation of venues and etc. will be gradually decontrolled, and the sports industry will boom soon. As to listed companies, Guirenniao Co., Ltd. (603555.SH) is the only listed company engaged in sports shoes and clothes in the A-share market. The company has expanded to campus sports, football brokerage firm and etc.; by relying on its brand influence and technology advantages in the sport equipment field with bicycle included, HL Corp (Shenzhen) (002105.SZ) devotes greater efforts in equipment for sports, fitness and rehabilitation.
○ Tight supply and solid demand drive price of butadiene up 8 pct
------
Data from Baichuan Information shows that the price of butadiene surged 8 percent in northeast China on June 21 due to short supply. The branches of Sinopec Chemical Commercial Holding Company Limited in Eastern China raised the price of butadiene by 300 yuan per ton and the price hike is further continued. Butadiene manufacturers indicated that as the market is now in short supply and the downstream has great rigid demands, their sales are on good conditions. The price of butadiene rose over 11 percent in the recent week, and up as high as 53 percent since this year.
Comment: It is learnt that sellers are still bullish about the future market and reluctant to sell. Currently, the mainstream price of butadiene in north China rises to 8,600-8,700 yuan per ton, and that in n northeast China rises to 8,600 yuan per ton. Minsheng Securities believes that Zibo Qixiang Tengda Chemical Co., Ltd. (002408.SZ) owns a butadiene capacity of 150,000 tons and it might see larger performance growth thanks to the price hike; North Huajin Chemical Industries Co., Ltd. (000059.SZ) owns a butadiene productivity of 120,000 tons.
TOP
[Announcement Interpretation]
○ Asia-Pacific Light Alloy Technology to expand to new energy vehicle industry through private placement
------
Jiangsu Asia-Pacific Light Alloy Technology Co., Ltd. (002540.SZ) proposes to raise 1.7 billion yuan through private placement by issuing 260 million shares at no less than 6.48 yuan per share. The raised fund will be used to invest in a new energy vehicle aluminium product project with an annual productivity of 65,000 tons and a light environment-friendly aluminium alloy product project with an annual productivity of 40,000 tons, and to supplement working capital. Zhou Fuhai, actual controller of the company, has promised a subscription of no less than 350 million yuan and no higher than 400 million yuan.
○ Restructuring of J＆R Fire Protection and Guanhao Biotech approved
------
The restructuring of Shaanxi J＆R Fire Protection Co., Ltd. (300116.SZ) is unconditionally approved by the China Securities Regulatory Commission, and Guanhao Biotech Co., Ltd. (300238.SZ) conditionally approved.
TOP
○ Substantial shareholder of Landscape Culture Communication to transfer equity
------
Guanghe Landscape Culture Communication Co., Ltd, ShanXi (600234.SH) announced that Yueyang Dingsheng Electronics Technology Co., Ltd. proposes to acquire all 20 million shares of its substantial shareholder named as Huang Guozhong, accounting for 9.88 percent equities of the total amount. The transfer price is 90 percent of the average price of the 120 trading days before signing the formal equity transfer agreement. The latest stock price of the listed company is 12.38 yuan.
Comment: It learnt that Dengsheng Electronics Technology was built up on June 16, the legal person of its direct controlling shareholder, Yueyang Nanhu Meishu Co., Ltd., named Gong Shaoxiang is also the vice president of Landing Investment Group, and the actual controller is Wanquan Real Estate Development (Hong Kong) Co., Ltd.
○ Tsinghua Unigroup subsidiaries bought shares of Zonfa Trinity Technology to the threshold for placarded acquisition again, optimistic on its transformation prospect
------
TongLing Zonfa Trinity Technology Co., Ltd. (600520.SH) announced that, from Feb. 25 to June 20, Tsinghua Unigroup and its person acting in concert totally bought 7.79 million shares of the listed company, accounting for 4.92 percent of the total equities. They accumulatively hold 15.84 million shares, taking up 10 percent, reaching the 5 percent threshold for placarded acquisition for the second time. Subsidiaries under the Tsinghua Unigroup are viewed as the ones usually bought the shares of the listed companies to the said threshold, and this move shows their confidence in the future business fields, transformation and development of Zonfa Trinity Technology.
Comment: Tsinghua Unigroup greatly bought 8.05 million shares of the listed company due to plummet by the daily 10 percent limit on Jan. 27, accounting for 5.08 percent of the total equities, triggering the placarded acquisition for the first time. The listed company announced on June 1 that its actual controllers altered to Luo Qifang and Zhou Wenyu; Anhui Ruizhen Commercial Management Co., Ltd. controlled by the two persons indirectly becomes the substantial shareholder of the listed company, with shareholdings taking up 17.09 percent. Ruizhen Commercial Management indicated that it has a plan to change its main businesses in next 12 months.
○ Tongding Interconnection Information to acquire two companies for RMB1.48 bln, deploying in mobile internet
------
Tongding Interconnection Information Co., Ltd. (002491.SZ) proposes to acquire the 100 percent equities of Byzoro Network Ltd. and Parallels Panel respectively. The evaluations and appreciation rates of the two are 1,000 and 480 million yuan, 626.85 and 858.70 percent respectively. The listed company plans to issue 63.29 million shares with 14.03 yuan per share and pay cash in 592 million yuan. Meanwhile, it will also issue 73,082,700 shares through private placement with 13.30 yuan for each, and raise the supporting fund of 972 million yuan to pay cash consideration and supplement liquidity. By this acquisition, the company will fully step into the fields of big data and information security, and further deepen the deployment of mobile internet.
○ Substantial shareholder of Jianxin Mining plans to bring in
------
Jianxin Group, controlling shareholder of Jianxin Mining Co., Ltd. (000688.SZ), proposes to bring in strategic investors through equity-based capital increment or equity transfer so as to carry out its restructuring. During the planning period, Jianxin Group negotiated with the potential investors, including Xinjiang Kaidi Investment Co., Ltd. and China Great Wall Asset Management Corporation, and actively searched for other intended investors to participate in the restructuring. Jianxin Group commits that it will continue to promote restructuring related affairs after trading resumption.
[Financial Reports Express]
○ Handler Special Vehicle proposes high share conversion and dividend in semi-annual report
------
The actual controller of Xuzhou Handler Special Vehicle Co., Ltd. (300201.SZ) proposes a 14-for-10 conversion of capital surplus into shares combined according to its semi-annual report.
○ Tibet Summit Industry expects profit growth in semi-annual report
------
Tibet Summit Industry Co., Ltd. (600338.SH) expects half-year net profit of 250 to 280 million yuan, from loss to gain, mainly as raw mine refining of its wholly-owned subsidiary Sino-Tajikistan Mining Co., Ltd. increased 41 percent.
[Trading Trends]
○ Four institutional seats bought Suzhou Good-ark Electronics
------
The trading volume ranking list on June 22 shows that Zhejiang Suzhou Good-ark Electronics Co., Ltd. (002079.SZ) was bought through four institutional seats with a total of 99.42 million yuan, accounting for 12.5 percent of its intraday turnover.
Comment: Benefiting from the news that Samsung plans to greatly invest in Internet of Tings, several individual stocks rocked by the daily 10 percent limit in this sector on June 22. Institutions believe that the listed company is leading in the industrial deployment on MEMS sensor design and sealing ＆ packing integration. Its automobile electronics revenue constantly increases, which was nearly 100 million yuan in 2015, and expected to soar by 30 percent this year.
[Trading Alarms]
○ Sunmun Technology to issue new shares on June 23
------
The offering price of Suzhou Sunmun Technology Co., Ltd. (300522.SZ) is 18.55 yuan, with P/E ratio of 23 times. The upper limit on subscription is 16,500 shares. The company is mainly engaged in water mill base.
TOP
○ Long March-7 carrier rocket to have maiden flight, aviation and military industry frequently driven by events
○ State General Administration of Sport to introduce mass fitness plan, Tight supply and solid demand drive price of butadiene up 8 pct
○ Asia-Pacific Light Alloy Technology to expand new energy vehicle industry, restructuring of J＆R Fire Protection and Guanhao Biotech approved
○ Substantial shareholder of Landscape Culture Communication to transfer equity, Tsinghua Unigroup subsidiaries bought shares of Zonfa Trinity Technology to the threshold for placarded acquisition again
[SSN Focus]
○Long March-7 carrier rocket to have maiden flight, aviation and military industry frequently driven by events
------
The movable launch platform for Long March-7 carrier rocket has been successfully transported to the launch pad on June 22 morning, and the rocket is planned to be launched at proper timing during June 25-29. It will be first launch carried out by the Wenchang Satellite Launch Center in Hainan province after it is built. The Long March-7 carrier rocket is a new-generation one with the application of new technologies like liquid oxygen/kerosene rocket engine, and it can also be used to launch man-made satellites and etc.
Comment: The aviation and military industry is frequently driven by various events in recent period, such as the issuance of the China BeiDou Navigation Satellite System White Book, the delivery ceremony of the first batch of Xian Y-20 large military transport aircrafts and the approaching Army Day. Past experiences show that military index usually sees large possibility of outperforming in one month before the Army Day, as believed by the public and private funds being surveyed. To win the war of informatization, the investment in informatization for national defense must catch up. Institutions are optimistic about BeiDou navigation system, aero-engine and new military materials like high-temperature alloy.
TOP
[SSN Selection]
○ The executive meeting of the State Council held on June 22 focused on promoting private investment, and putting forward countermeasures for problems like market access as well as the difficulties and high costs in financing.
○ When attending the board meeting of the World Federation of Exchanges (WFE), Liu Shiyu, chairman of the China Securities Regulatory Commission, pointed out that China's capital market will pay more attention to legal system construction during the 13th five-year plan period
○ The south-bound trading of the Shanghai-Hong Kong Stock Connect program saw a net inflow of 3 billion yuan on June 22, setting a new high in nearly 14 months; several Hong Kong stocks-based ETFs saw large amount of net subscription in recent days.
○ The Monetary Authority of Singapore includes RMB investments as part of its official foreign exchange reserves, indicating that it recognizes the steady and calibrated liberalization of China's financial markets.
○ The Shenzhen Stock Exchange issued a reorganization inquiry to China Vanke Co., Ltd. (000002.SZ) on June 22, requiring Vanke to submit explanation materials before June 24.
TOP
[Industry Information]
○ State General Administration of Sport to introduce mass fitness plan, pro-growth policies to boost industry
------
It is said on the website of the State Council Information Office that a press conference will be held at 10:00 am on June 23 with Liu Peng, director of the State General Administration of Sport of China, introducing the Mass Fitness Plan (2016-2020) and taking journalists' questions. The State General Administration of Sport rolled out China's 13th five-year (2016-2020) sports development plan in May, proposing goals including that by 2020, 435 million people take regular exercises, the sports areas per capita reaches 1.8 square meters and the overall size of the sports industry exceeds 3 trillion yuan.
Comment: Guotai Junan Securities believes that the sports industry has been lifted to a national strategy level. As administration is streamlined and power is delegated to the lower levels, core resources like the running of events, the operation of venues and etc. will be gradually decontrolled, and the sports industry will boom soon. As to listed companies, Guirenniao Co., Ltd. (603555.SH) is the only listed company engaged in sports shoes and clothes in the A-share market. The company has expanded to campus sports, football brokerage firm and etc.; by relying on its brand influence and technology advantages in the sport equipment field with bicycle included, HL Corp (Shenzhen) (002105.SZ) devotes greater efforts in equipment for sports, fitness and rehabilitation.
○ Tight supply and solid demand drive price of butadiene up 8 pct
------
Data from Baichuan Information shows that the price of butadiene surged 8 percent in northeast China on June 21 due to short supply. The branches of Sinopec Chemical Commercial Holding Company Limited in Eastern China raised the price of butadiene by 300 yuan per ton and the price hike is further continued. Butadiene manufacturers indicated that as the market is now in short supply and the downstream has great rigid demands, their sales are on good conditions. The price of butadiene rose over 11 percent in the recent week, and up as high as 53 percent since this year.
Comment: It is learnt that sellers are still bullish about the future market and reluctant to sell. Currently, the mainstream price of butadiene in north China rises to 8,600-8,700 yuan per ton, and that in n northeast China rises to 8,600 yuan per ton. Minsheng Securities believes that Zibo Qixiang Tengda Chemical Co., Ltd. (002408.SZ) owns a butadiene capacity of 150,000 tons and it might see larger performance growth thanks to the price hike; North Huajin Chemical Industries Co., Ltd. (000059.SZ) owns a butadiene productivity of 120,000 tons.
TOP
[Announcement Interpretation]
○ Asia-Pacific Light Alloy Technology to expand to new energy vehicle industry through private placement
------
Jiangsu Asia-Pacific Light Alloy Technology Co., Ltd. (002540.SZ) proposes to raise 1.7 billion yuan through private placement by issuing 260 million shares at no less than 6.48 yuan per share. The raised fund will be used to invest in a new energy vehicle aluminium product project with an annual productivity of 65,000 tons and a light environment-friendly aluminium alloy product project with an annual productivity of 40,000 tons, and to supplement working capital. Zhou Fuhai, actual controller of the company, has promised a subscription of no less than 350 million yuan and no higher than 400 million yuan.
○ Restructuring of J＆R Fire Protection and Guanhao Biotech approved
------
The restructuring of Shaanxi J＆R Fire Protection Co., Ltd. (300116.SZ) is unconditionally approved by the China Securities Regulatory Commission, and Guanhao Biotech Co., Ltd. (300238.SZ) conditionally approved.
TOP
○ Substantial shareholder of Landscape Culture Communication to transfer equity
------
Guanghe Landscape Culture Communication Co., Ltd, ShanXi (600234.SH) announced that Yueyang Dingsheng Electronics Technology Co., Ltd. proposes to acquire all 20 million shares of its substantial shareholder named as Huang Guozhong, accounting for 9.88 percent equities of the total amount. The transfer price is 90 percent of the average price of the 120 trading days before signing the formal equity transfer agreement. The latest stock price of the listed company is 12.38 yuan.
Comment: It learnt that Dengsheng Electronics Technology was built up on June 16, the legal person of its direct controlling shareholder, Yueyang Nanhu Meishu Co., Ltd., named Gong Shaoxiang is also the vice president of Landing Investment Group, and the actual controller is Wanquan Real Estate Development (Hong Kong) Co., Ltd.
○ Tsinghua Unigroup subsidiaries bought shares of Zonfa Trinity Technology to the threshold for placarded acquisition again, optimistic on its transformation prospect
------
TongLing Zonfa Trinity Technology Co., Ltd. (600520.SH) announced that, from Feb. 25 to June 20, Tsinghua Unigroup and its person acting in concert totally bought 7.79 million shares of the listed company, accounting for 4.92 percent of the total equities. They accumulatively hold 15.84 million shares, taking up 10 percent, reaching the 5 percent threshold for placarded acquisition for the second time. Subsidiaries under the Tsinghua Unigroup are viewed as the ones usually bought the shares of the listed companies to the said threshold, and this move shows their confidence in the future business fields, transformation and development of Zonfa Trinity Technology.
Comment: Tsinghua Unigroup greatly bought 8.05 million shares of the listed company due to plummet by the daily 10 percent limit on Jan. 27, accounting for 5.08 percent of the total equities, triggering the placarded acquisition for the first time. The listed company announced on June 1 that its actual controllers altered to Luo Qifang and Zhou Wenyu; Anhui Ruizhen Commercial Management Co., Ltd. controlled by the two persons indirectly becomes the substantial shareholder of the listed company, with shareholdings taking up 17.09 percent. Ruizhen Commercial Management indicated that it has a plan to change its main businesses in next 12 months.
○ Tongding Interconnection Information to acquire two companies for RMB1.48 bln, deploying in mobile internet
------
Tongding Interconnection Information Co., Ltd. (002491.SZ) proposes to acquire the 100 percent equities of Byzoro Network Ltd. and Parallels Panel respectively. The evaluations and appreciation rates of the two are 1,000 and 480 million yuan, 626.85 and 858.70 percent respectively. The listed company plans to issue 63.29 million shares with 14.03 yuan per share and pay cash in 592 million yuan. Meanwhile, it will also issue 73,082,700 shares through private placement with 13.30 yuan for each, and raise the supporting fund of 972 million yuan to pay cash consideration and supplement liquidity. By this acquisition, the company will fully step into the fields of big data and information security, and further deepen the deployment of mobile internet.
○ Substantial shareholder of Jianxin Mining plans to bring in
------
Jianxin Group, controlling shareholder of Jianxin Mining Co., Ltd. (000688.SZ), proposes to bring in strategic investors through equity-based capital increment or equity transfer so as to carry out its restructuring. During the planning period, Jianxin Group negotiated with the potential investors, including Xinjiang Kaidi Investment Co., Ltd. and China Great Wall Asset Management Corporation, and actively searched for other intended investors to participate in the restructuring. Jianxin Group commits that it will continue to promote restructuring related affairs after trading resumption.
[Financial Reports Express]
○ Handler Special Vehicle proposes high share conversion and dividend in semi-annual report
------
The actual controller of Xuzhou Handler Special Vehicle Co., Ltd. (300201.SZ) proposes a 14-for-10 conversion of capital surplus into shares combined according to its semi-annual report.
○ Tibet Summit Industry expects profit growth in semi-annual report
------
Tibet Summit Industry Co., Ltd. (600338.SH) expects half-year net profit of 250 to 280 million yuan, from loss to gain, mainly as raw mine refining of its wholly-owned subsidiary Sino-Tajikistan Mining Co., Ltd. increased 41 percent.
[Trading Trends]
○ Four institutional seats bought Suzhou Good-ark Electronics
------
The trading volume ranking list on June 22 shows that Zhejiang Suzhou Good-ark Electronics Co., Ltd. (002079.SZ) was bought through four institutional seats with a total of 99.42 million yuan, accounting for 12.5 percent of its intraday turnover.
Comment: Benefiting from the news that Samsung plans to greatly invest in Internet of Tings, several individual stocks rocked by the daily 10 percent limit in this sector on June 22. Institutions believe that the listed company is leading in the industrial deployment on MEMS sensor design and sealing ＆ packing integration. Its automobile electronics revenue constantly increases, which was nearly 100 million yuan in 2015, and expected to soar by 30 percent this year.
[Trading Alarms]
○ Sunmun Technology to issue new shares on June 23
------
The offering price of Suzhou Sunmun Technology Co., Ltd. (300522.SZ) is 18.55 yuan, with P/E ratio of 23 times. The upper limit on subscription is 16,500 shares. The company is mainly engaged in water mill base.
TOP
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