[Today's Guide]
○ Meeting of LGDRC of CCCPC convened, Fujian to build national ecological civilization test area
○ Baidu's UGV to put into commercial use within three years, price of sodium carbonate goes up due to production restriction of the industry
○ Sitong New Metal Material to acquire Tianjin Lizhong, Private fund invests in Kerong Environmental Resources
○ Zhenyuan Share expects high growth in interim report, Xinchao Industry to disclose interim report first
[SSN Focus]
○ Meeting of LGDRC of CCCPC convened, Fujian to build national ecological civilization test area
------
The Leading Group for Deepening Reform Comprehensively (LGDRC) of the CCCPC approved the National Ecologic Civilization (Fujian) Implementation Plan at the meeting held on June 27. The LGDRC requires the implementation of overall lay-out requirements on ecologic civilization system reform as proposed by the CCCPC, and conduct trials on major reforms, including advancing development and protection system for land, preparation of space planning, market based reform on ecological product, building diversified ecological protection and remedy mechanism, perfect environment treatment system, building and improving natural resource asset property right system and conducting green development performance appraise and examine.
Comment: building unified and standardized national ecological civilization test area means that existing ecological civilization test areas will be integrated and cleaned up. To put various reforms in one basket and take coordinated considerations can better form synergy effect. Similar to free trade zone model, being replicable and promotable are the basic requirements of the construction of ecological civilization test area. While improving ecological protection and remedy mechanism, the General Office of the State Council has issued circular, urging to realize overall ecological protection remedy coverage of important areas, including forest, prairie and wet land. Public information shows that Fujian Jinsen Forestry Co., Ltd. (002679.SZ), Fujian Yongan Forestry (group) Joint-stock Co., ltd. (000663.SZ) and Zhongfu Straits (pingtan) development Company Limited (000592.SZ) are registered in Fujian Province, and their major business include forestry.
○ Chongqing to include in third batch of free trade zones
------
SSN learnt that the Chongqing's application work on free trade zone has largely completed. Chongqing is expected to be included in the third batch of free trade zones. Chongqing free trade zone has a total area of 120 square meters, consisting of Liangjiang New Area, Chongqing West Modern Logistics Industry Park and Chongqing Xiyong Microelectronics Industrial Park. Liangjiang New Area will focus on bonded port area.
[SSN Selection]
○ The PBOC on June 27 issued annual financial stability report, proposing to start Shenzhen-Hong Kong Stock Connect, improve Shanghai-Hong Kong Stock Connect and study Shanghai-London Stock Connect.
○ The PBOC on June 27 conducted a reverse repo with an amount of 270 million yuan, the highest over the past four months. Interbank capital supply are overall stable.
○ Domestic antimony oxides on June 27 witnessed price hike of 500 yuan per ton. Since the beginning of the year, antimony oxides in overseas market has gone up 25 percent in total.
○ Changjiang Securities Co., Ltd. (000783.SZ) announced that the company has reached strategic cooperation with Qihu 360. The company believes that this will improve its ability to develop and serve its customers by utilizing Internet.
○ Reports of the board of directors and board of supervisors of China Vanke Co., Ltd. (000002.SZ) have not been approved at the general meeting of shareholders; Wang Shi, executive director of the company, indicated that his leave or remain in the company is not important.
TOP
[Industry Information]
○ Baidu's UGV to put into commercial use within three years, aided driving to embrace hundred billion market
------
Xinhua news agency reported that during the 2016 summer Davos Forum, Baidu's CEO Zhang Yaqin indicated that Baidu will in the future highlight unmanned ground vehicle, and at the same time plans to put it into commercial use within three years and realize mass production within five years. Zhang introduced that the core technology of Baidu's UGV project is the so called "Baidu automobile brain", including high precision map, positioning, sensing, intelligent decision making and control. Significantly, Baidu's self-collected and prepared high precision map has recorded completed three dimension road information, which is able to position a vehicle with centimeter accuracy.
Comment: Citic Securities indicated in its research report that the trend of future technology advancement will develop from Internet to Internet of things. Intelligent driving is the best carrier for "Internet of everything", and unmanned driving is the final direction for the development of automobile intelligence. Modularized advanced driver assistance systems (ADAS) is an important way that drive the transformation from traditional automobile to unmanned driving. It is estimated that China's ADAS market will reach above 200 billion yuan by 2020. In listed companies, Zhejiang Vie Science ＆ Technology Co., ltd. (002590.SZ) and ZYNP Corporation (002448.SZ) have all deployed ADAS industrial chain.
○Effect of production restriction emerge, price of sodium carbonate goes up
------
SSN learnt that the price of sodium carbonate rebounded in the recent weak, and eastern China has especially saw a maximum gain of 5 percent, due to production restriction in the industry and turnaround of units. Since domestic sodium carbonate enterprises have recently largely reduced the production, coupled with factories strictly controlled the production, inventory of the product has fallen to a low level. Besides, as the unit turnaround season of domestic sodium carbonate enterprises is coming, the supply and demand structure will see substantial adjustment. When factories' inventory is insufficient, the product may be short of supply in different regions and continues to push up the price.
Comment: China Securities indicated in its research report that the sodium carbonate market is weak in recent years, which has eliminated some production capacity. When new capacity is not much and construction commencement of downstream real estate industry recover, the profitability of sodium carbonate industry is expected to increase. In listed companies, Tangshan Sanyou Chemical Industries Co., Ltd. (600409.SH) has 3,400,000 ton sodium carbonate production capacity, representing the largest market share in China; Hubei Shuanghuan Science and Technology Stock Co., Ltd. (000707.SZ) has 1,800,000 ton production production capacity.
TOP
[Announcement Interpretation]
○ Sitong New Metal Material to acquire Tianjin Lizhong with RMB2.55 bln
------
Hebei Sitong New Metal Material Co., Ltd. (300428.SZ) proposes to issue 57.48 million shares at 44.36 yuan per share through private placement to acquire 100 percent equities of Tianjin Lizhong with 2.55 billion yuan. Meanwhile, it plans to raise 900 million yuan by issuing shares through private placement. The proceeds will be invested to the light casting aluminium alloy wheels with annual capacity of 4 million and high-strength aluminium hanged components for vehicles with an annual capacity of 1 million.
Tianjin Lizhong is principally engaged in the research, development, design, manufacturing and sale of aluminium alloy wheels. Its products are sold to manufacturers of well-known vehicle brands around the world. The counterparty committed that the net profit will be no less than 203 million yuan, 262 million yuan and 327 million yuan from 2016 to 2018, respectively.
○ Private fund invests in Kerong Environmental Resources
------
Xuzhou Kerong Environmental Resources Co., Ltd. (300152.SZ) announced that Tianjin Fengli Innovation Investment Co., Ltd. acquired 91.96 percent equities of Jieneng Technology, the controlling shareholder of the company, with a total price of 850 million yuan. Jieneng Technology remains the controlling shareholder of Kerong Environmental Resources with a shareholding of 29.46 percent after the transaction. The actual controller of the company is Mao Fengli, a natural person, after the transaction.
Comment: Fengli Innovation Investment was established on May 12, 2016. It is principally engaged in making investments in emerging industries with its own capitals. Its registered capital is 100 million yuan and it has not conducted any businesses so far. Fengli Wealth, its controlling shareholder, is a private fund manager. Fengli Innovation Investment indicated that it will effectively consolidate resources based in the main business through the listed platform and expand the environmental industrial chain to promote the exogenous growth and endogenous development of the listed company.
○ China Electronics increases shareholding in China Greatwall Computer and GreatWall Information Industry before general meeting
------
China Greatwall Computer Shenzhen Co., Ltd. (000066.SZ) and GreatWall Information Industry Co., Ltd. (000748.SZ) announced that China Electronics Corporation, the controlling shareholder of the two companies, increased the shareholding in the company with 8,240,200 shares and 13,905,300 shares. Its shareholding proportion in the company increased from 54.14 percent to 54.77 percent and from 20.58 percent to 22.28 percent, respectively. China Electronics indicated that it will support the operation and development of the listed companies as it used to do.
Comment: The adjusted consolidation plans of China Greatwall Computer and GreatWall Information Industry will be deliberated at their respective general meeting to be held on July 1. China Greatwall Computer lowered the bottom price for the private placement from 18.99 yuan per share to 13.04 yuan per share, which was objected by medium and small shareholders. China Electronics' shareholding increase may benefit medium and small shareholders and will raise the chances of passing relevant plans.
○ China Aerospace Times Electronics completes tasks in maiden flight of Long March-7
------
China Aerospace Times Electronics Co., Ltd. (600879.SH) announced that the maiden flight of the Long March-7, the new generation of medium carrier rocket, is successful. The company is a main participant in the electronic products for the Long March-7. The successful launching of the Long March-7 paved the path for assuming more space tasks in the future.
○ Guide Infrared develops infrared night vision system for vehicles
------
Wuhan Guide Infrared Co., Ltd. (002414.SZ) intends to contribute 20 million yuan in establishing a wholly-owned subsidiary in Shenzhen to expand the market for infrared night vision system for vehicles and expand the intelligent automotive industrial chain. The core component of the company is the infrared UFPA detector, which will promote the application of infrared thermal imaging technology and greatly improve the profitability.
TOP
[Financial Reports Express]
○ Zhenyuan Share expects high growth in interim report
------
Zhejiang Zhenyuan Share Co., Ltd. (000705.SZ) expects an increase of 250 to 270 percent in net profit in its interim report thanks to the surging prices of the active ingredients. Wuxi Boton Technology Co., Ltd. (300031.SZ) expects an increase of 70 to 100 percent in net profit in its interim report thanks to the consolidation of the financial statements of Yihuan Network.
[Data Speaks]
○ SSE arranges disclosure of interim reports
------
Shanghai Stock Exchange arranged the disclosure of the interim reports. Yantai Xinchao Industry Co., Ltd. (600777.SH) and Anhui Jiuhuashan Tourism Development Co., Ltd. (603199.SH) will disclose the interim report first on July 12. Henan Oriental Silver Star Investment Co., Ltd. (600753.SH) and Ningbo Boway Alloy Material Co., Ltd. (601137.SH) will publish their interim reports in July 16. Tibet Summit Industry Co., Ltd. (600338.SH) and Dazhou Xingye Holding Co., Ltd. (600603.SH) will release their interim reports on July 19.
[Trading Alarms]
○ Guangchuang Software to conduct IPO on June 28
------
Guangchuang Software Co., Ltd. (300520.SZ) issues shares at 10.05 yuan per share with a P/E ratio of 23 times and an upper subscription limit of 9,000 shares for each account. The company is professionally engaged in the research, development and sale of software.
TOP
○ Meeting of LGDRC of CCCPC convened, Fujian to build national ecological civilization test area
○ Baidu's UGV to put into commercial use within three years, price of sodium carbonate goes up due to production restriction of the industry
○ Sitong New Metal Material to acquire Tianjin Lizhong, Private fund invests in Kerong Environmental Resources
○ Zhenyuan Share expects high growth in interim report, Xinchao Industry to disclose interim report first
[SSN Focus]
○ Meeting of LGDRC of CCCPC convened, Fujian to build national ecological civilization test area
------
The Leading Group for Deepening Reform Comprehensively (LGDRC) of the CCCPC approved the National Ecologic Civilization (Fujian) Implementation Plan at the meeting held on June 27. The LGDRC requires the implementation of overall lay-out requirements on ecologic civilization system reform as proposed by the CCCPC, and conduct trials on major reforms, including advancing development and protection system for land, preparation of space planning, market based reform on ecological product, building diversified ecological protection and remedy mechanism, perfect environment treatment system, building and improving natural resource asset property right system and conducting green development performance appraise and examine.
Comment: building unified and standardized national ecological civilization test area means that existing ecological civilization test areas will be integrated and cleaned up. To put various reforms in one basket and take coordinated considerations can better form synergy effect. Similar to free trade zone model, being replicable and promotable are the basic requirements of the construction of ecological civilization test area. While improving ecological protection and remedy mechanism, the General Office of the State Council has issued circular, urging to realize overall ecological protection remedy coverage of important areas, including forest, prairie and wet land. Public information shows that Fujian Jinsen Forestry Co., Ltd. (002679.SZ), Fujian Yongan Forestry (group) Joint-stock Co., ltd. (000663.SZ) and Zhongfu Straits (pingtan) development Company Limited (000592.SZ) are registered in Fujian Province, and their major business include forestry.
○ Chongqing to include in third batch of free trade zones
------
SSN learnt that the Chongqing's application work on free trade zone has largely completed. Chongqing is expected to be included in the third batch of free trade zones. Chongqing free trade zone has a total area of 120 square meters, consisting of Liangjiang New Area, Chongqing West Modern Logistics Industry Park and Chongqing Xiyong Microelectronics Industrial Park. Liangjiang New Area will focus on bonded port area.
[SSN Selection]
○ The PBOC on June 27 issued annual financial stability report, proposing to start Shenzhen-Hong Kong Stock Connect, improve Shanghai-Hong Kong Stock Connect and study Shanghai-London Stock Connect.
○ The PBOC on June 27 conducted a reverse repo with an amount of 270 million yuan, the highest over the past four months. Interbank capital supply are overall stable.
○ Domestic antimony oxides on June 27 witnessed price hike of 500 yuan per ton. Since the beginning of the year, antimony oxides in overseas market has gone up 25 percent in total.
○ Changjiang Securities Co., Ltd. (000783.SZ) announced that the company has reached strategic cooperation with Qihu 360. The company believes that this will improve its ability to develop and serve its customers by utilizing Internet.
○ Reports of the board of directors and board of supervisors of China Vanke Co., Ltd. (000002.SZ) have not been approved at the general meeting of shareholders; Wang Shi, executive director of the company, indicated that his leave or remain in the company is not important.
TOP
[Industry Information]
○ Baidu's UGV to put into commercial use within three years, aided driving to embrace hundred billion market
------
Xinhua news agency reported that during the 2016 summer Davos Forum, Baidu's CEO Zhang Yaqin indicated that Baidu will in the future highlight unmanned ground vehicle, and at the same time plans to put it into commercial use within three years and realize mass production within five years. Zhang introduced that the core technology of Baidu's UGV project is the so called "Baidu automobile brain", including high precision map, positioning, sensing, intelligent decision making and control. Significantly, Baidu's self-collected and prepared high precision map has recorded completed three dimension road information, which is able to position a vehicle with centimeter accuracy.
Comment: Citic Securities indicated in its research report that the trend of future technology advancement will develop from Internet to Internet of things. Intelligent driving is the best carrier for "Internet of everything", and unmanned driving is the final direction for the development of automobile intelligence. Modularized advanced driver assistance systems (ADAS) is an important way that drive the transformation from traditional automobile to unmanned driving. It is estimated that China's ADAS market will reach above 200 billion yuan by 2020. In listed companies, Zhejiang Vie Science ＆ Technology Co., ltd. (002590.SZ) and ZYNP Corporation (002448.SZ) have all deployed ADAS industrial chain.
○Effect of production restriction emerge, price of sodium carbonate goes up
------
SSN learnt that the price of sodium carbonate rebounded in the recent weak, and eastern China has especially saw a maximum gain of 5 percent, due to production restriction in the industry and turnaround of units. Since domestic sodium carbonate enterprises have recently largely reduced the production, coupled with factories strictly controlled the production, inventory of the product has fallen to a low level. Besides, as the unit turnaround season of domestic sodium carbonate enterprises is coming, the supply and demand structure will see substantial adjustment. When factories' inventory is insufficient, the product may be short of supply in different regions and continues to push up the price.
Comment: China Securities indicated in its research report that the sodium carbonate market is weak in recent years, which has eliminated some production capacity. When new capacity is not much and construction commencement of downstream real estate industry recover, the profitability of sodium carbonate industry is expected to increase. In listed companies, Tangshan Sanyou Chemical Industries Co., Ltd. (600409.SH) has 3,400,000 ton sodium carbonate production capacity, representing the largest market share in China; Hubei Shuanghuan Science and Technology Stock Co., Ltd. (000707.SZ) has 1,800,000 ton production production capacity.
TOP
[Announcement Interpretation]
○ Sitong New Metal Material to acquire Tianjin Lizhong with RMB2.55 bln
------
Hebei Sitong New Metal Material Co., Ltd. (300428.SZ) proposes to issue 57.48 million shares at 44.36 yuan per share through private placement to acquire 100 percent equities of Tianjin Lizhong with 2.55 billion yuan. Meanwhile, it plans to raise 900 million yuan by issuing shares through private placement. The proceeds will be invested to the light casting aluminium alloy wheels with annual capacity of 4 million and high-strength aluminium hanged components for vehicles with an annual capacity of 1 million.
Tianjin Lizhong is principally engaged in the research, development, design, manufacturing and sale of aluminium alloy wheels. Its products are sold to manufacturers of well-known vehicle brands around the world. The counterparty committed that the net profit will be no less than 203 million yuan, 262 million yuan and 327 million yuan from 2016 to 2018, respectively.
○ Private fund invests in Kerong Environmental Resources
------
Xuzhou Kerong Environmental Resources Co., Ltd. (300152.SZ) announced that Tianjin Fengli Innovation Investment Co., Ltd. acquired 91.96 percent equities of Jieneng Technology, the controlling shareholder of the company, with a total price of 850 million yuan. Jieneng Technology remains the controlling shareholder of Kerong Environmental Resources with a shareholding of 29.46 percent after the transaction. The actual controller of the company is Mao Fengli, a natural person, after the transaction.
Comment: Fengli Innovation Investment was established on May 12, 2016. It is principally engaged in making investments in emerging industries with its own capitals. Its registered capital is 100 million yuan and it has not conducted any businesses so far. Fengli Wealth, its controlling shareholder, is a private fund manager. Fengli Innovation Investment indicated that it will effectively consolidate resources based in the main business through the listed platform and expand the environmental industrial chain to promote the exogenous growth and endogenous development of the listed company.
○ China Electronics increases shareholding in China Greatwall Computer and GreatWall Information Industry before general meeting
------
China Greatwall Computer Shenzhen Co., Ltd. (000066.SZ) and GreatWall Information Industry Co., Ltd. (000748.SZ) announced that China Electronics Corporation, the controlling shareholder of the two companies, increased the shareholding in the company with 8,240,200 shares and 13,905,300 shares. Its shareholding proportion in the company increased from 54.14 percent to 54.77 percent and from 20.58 percent to 22.28 percent, respectively. China Electronics indicated that it will support the operation and development of the listed companies as it used to do.
Comment: The adjusted consolidation plans of China Greatwall Computer and GreatWall Information Industry will be deliberated at their respective general meeting to be held on July 1. China Greatwall Computer lowered the bottom price for the private placement from 18.99 yuan per share to 13.04 yuan per share, which was objected by medium and small shareholders. China Electronics' shareholding increase may benefit medium and small shareholders and will raise the chances of passing relevant plans.
○ China Aerospace Times Electronics completes tasks in maiden flight of Long March-7
------
China Aerospace Times Electronics Co., Ltd. (600879.SH) announced that the maiden flight of the Long March-7, the new generation of medium carrier rocket, is successful. The company is a main participant in the electronic products for the Long March-7. The successful launching of the Long March-7 paved the path for assuming more space tasks in the future.
○ Guide Infrared develops infrared night vision system for vehicles
------
Wuhan Guide Infrared Co., Ltd. (002414.SZ) intends to contribute 20 million yuan in establishing a wholly-owned subsidiary in Shenzhen to expand the market for infrared night vision system for vehicles and expand the intelligent automotive industrial chain. The core component of the company is the infrared UFPA detector, which will promote the application of infrared thermal imaging technology and greatly improve the profitability.
TOP
[Financial Reports Express]
○ Zhenyuan Share expects high growth in interim report
------
Zhejiang Zhenyuan Share Co., Ltd. (000705.SZ) expects an increase of 250 to 270 percent in net profit in its interim report thanks to the surging prices of the active ingredients. Wuxi Boton Technology Co., Ltd. (300031.SZ) expects an increase of 70 to 100 percent in net profit in its interim report thanks to the consolidation of the financial statements of Yihuan Network.
[Data Speaks]
○ SSE arranges disclosure of interim reports
------
Shanghai Stock Exchange arranged the disclosure of the interim reports. Yantai Xinchao Industry Co., Ltd. (600777.SH) and Anhui Jiuhuashan Tourism Development Co., Ltd. (603199.SH) will disclose the interim report first on July 12. Henan Oriental Silver Star Investment Co., Ltd. (600753.SH) and Ningbo Boway Alloy Material Co., Ltd. (601137.SH) will publish their interim reports in July 16. Tibet Summit Industry Co., Ltd. (600338.SH) and Dazhou Xingye Holding Co., Ltd. (600603.SH) will release their interim reports on July 19.
[Trading Alarms]
○ Guangchuang Software to conduct IPO on June 28
------
Guangchuang Software Co., Ltd. (300520.SZ) issues shares at 10.05 yuan per share with a P/E ratio of 23 times and an upper subscription limit of 9,000 shares for each account. The company is professionally engaged in the research, development and sale of software.
TOP
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