[Today's Guide]
○Made-in-China regional jet starts commercial operation, companies involved in industrial chain to see benefit
○China Water Rights Exchange sets up, NDRC to launch medical services pricing reform
○Biggest shareholder of Winsan Medical Science and Technology altered to BDG, actual controllers of Oriental Energy and Zonfa Trinity Technology to launch shareholding increase plans
○Dilong New Material increases performance forecast in semi-annual report, Dehua TB New Decoration Material bought through five institutional seats
[SSN Focus]
○Made-in-China regional jet starts commercial operation, companies involved in industrial chain to see benefit
------
The made-in-China regional jet ARJ21-700 carrying 70 passengers officially started commercial operation on Jun 28, becoming the first airplane with completely independent intellectual property being put into operation in China's civil aviation industry. Commercial Aircraft Corporation of China, Ltd. (COMAC) indicated that series products of ARJ21 jet will be launched as soon as possible in the future to expand market share. According to plans, 5 ARJ21 jets will be delivered before the year end, 2 of which have 90 seats and the rest 3 have 78 seats. It is expected that totally 30 jets will be delivered in next 5-6 years.
Comment: The commercial operation of ARJ21-700 marks that China has stepped another stride forward on the way to build independent aviation industry. China is also working on made-in-China big airplane C919 now and the maiden flight might be launched in the second half. Research report by Essence Securities shows that as the project of made-in-China big airplane advances and the domestication level improves, the R＆D companies and supporting equipment companies involved in the industrial chain will all have a finger in the pie. Companies including Avic Aircraft Co., Ltd. (000768.SZ), China Avionics Systems Co., Ltd. (600372.SH) and Jiangxi Hongdu Aviation Industry Co., Ltd. (600316.SH) are involved in the R＆D and production of big airplane and components.
[SSN Selection]
○The Standing Committee of the National People's Congress (NPC) on June 28 deliberated the draft of the network security law. Some members suggest that the state's ability to cope with the threats from network security should be strengthened legally.
○The State Council printed and distributed the Decisions about Improving the Lightning Protection Permit of Construction Projects, requiring ensuring lightning protection of construction projects by intensifying supervision during and after the events.
○The 6th China International Smart Grid Construction Technology and Equipment Expo will be kicked off on June 29 with energy Internet highlighted.
○Qihoo 360 Technology Co. Ltd. indicated that the financial group of privatization is striving to meet the rest conditions for the merger. It is expected to be completed in mid-August.
○Shenzhen Tellus Holding Co., Ltd. (000025.SZ), which surged to the daily limit of 10 percent for four consecutive trading days in recent period, announced trading suspension from June 29 due to great deviation resulted by upsurge.
TOP
[Industry Information]
○China Water Rights Exchange sets up, boosting water treatment industry
------
www.cnr.cn reported that China Water Rights Exchange officially opens to business on June 28. The exchange's registered capital is 600 million yuan. The establishment of water rights exchange will enhance efficient water use by allocating water resources via market mechanism. Water right trading refers to the transfer of the right to use water resources between upstream and downstream, across industries and among different users in different regions and different river basins on the basis of reasonably defining and allocating the right to use water resources.
Comment: BOC International noted in its research report that driven by the strictest water resource management system and water rights trading, the water treatment industry will see rapid development. During the 13th Five-Year Plan period, nearly 50 percent investment in environmental protection will be used for water environment treatment. Sewage treatment enterprises are expected to expand their market shares by developing recycling water. As for listed companies, sewage treatment enterprises, such as Wuhan Sanzhen Industry Holding Co., Ltd. (600168.SH) and Tianjin Capital Environmental Protection Group Company Limited (600874.SH), are expected to benefit from the rising value of water rights.
○NDRC to launch medical services pricing reform, privately-run hospitals to see benefit
------
The news spokesman of the National Development and Reform Commission (NDRC) indicated on June 28 that the NDRC will jointly issue the Opinions on Promoting the Pricing Reform in Medical Services, being approved by the State Council, together with the National Health and Family Planning Commission, the Ministry of Human Resources and Social Security and the Ministry of Finance. The Opinions is a key part in the pharmaceutical and health system reform and a companion policy in promoting pricing reform for pharmaceuticals released last year. It is reported that local authorities will implement the reform on the pricing of medical services from July 1 at the soonest. The charges of CT, magnetic resonance and other large equipment examination will be reduced significantly. The charges for diagnosis and treatment and operations of chief physicians will rise.
Comment: The market-oriented pricing will stimulate medical staff, form a reasonable appraisal on the professional value, guide and encourage social capital to move faster in entering the medical service field, and advance the formation of diversified hospital running structure. Research report by Zhongtai Securities believes that Aier Eye Hospital Group Co., Ltd. (300015.SZ), Guizhou Xinbang Pharmaceutical Co., Ltd. (002390.SZ) and Top Choice Medical Investment Co., Inc. (600763.SH) are respectively engaged in ophthalmology, oncology and stomatology which see high net profit ratio, and they might embrace rapid expansion.
TOP
[Announcement Interpretation]
○Biggest shareholder of Winsan Medical Science and Technology altered to BDG
------
The biggest shareholder of Winsan(shanghai)Medical Science and Technology Co., Ltd. (600767.SH), Juche Group, transfer its directly-held 53,508,300 shares (15.69 percent of the total equity) of the listed company to Sichuan BD Asset Management Co., Ltd. at a price of 15.7 yuan per share, and the total transaction price is 840 million yuan. After the trading, BD Asset Management will hold 15.69 percent equities of the listed company, making it the largest shareholder. Meanwhile, BD Asset Management also plans to increase the shareholdings no less than 3 percent and no more than 5 percent equities in next 12 months, if the price of the listed company does not excess 25 yuan per share.
BDG, held by Dai Xuebin and Dong Xiang who are the actual controllers of BD Asset Management, has many businesses including real estate development, property management and etc. Up to the end of 2015, its net asset totaled at 10,638 million yuan. For this transfer, BDG indicated that its main purpose is to effectively integrate the resources through listed company's platform, and enhance the core competitiveness.
○Actual controllers of Oriental Energy and Zonfa Trinity Technology to launch shareholding increase plan respectively
------
Zhou Yifeng, the actual controller of Oriental Energy Co., Ltd. (002221.SZ), plans to increase the shareholdings in the listed company in next six months with no more than 300 million yuan. The proportion will not be less than 0.5 percent equities or more than 2 percent equities. The actual controller of TongLing Zonfa Trinity Technology Co., Ltd. (600520.SH) proposes to increase the shareholdings in the listed company in next 12 months with no less than 1 percent equity.
○Price of Pien Tze Huang to raise
------
Zhangzhou Pientzehuang Pharmaceutical Co., Ltd. (600436.SH) will increase the factory price of Pien Tze Huang, its main product. The retail price will be raised to 500 yuan per unit from 460 yuan per unit in the market.
○Estun Automation to acquire robot enterprise for RMB76 mln
------
NanJing Estun Automation Co., Ltd. (002747.SZ) plans to acquire the 100 percent equities of Shanghai Prex MFG Co., Ltd. for 76 million yuan. Prex MFG features in advantages of international technology in industrial robot system integration, such as robot deliver, painting, inset, trimming and buffing, and mainly provides services for automobile and related component enterprises. The transferor expects net profit of Prex MFG will be 7.8, 9.7 and 9.7 million yuan respectively from 2016 to 2018.
○China Shipbuilding Industry to raise RMB3.9 bln through private placement for liabilities
------
In order to raise 3.9 billion yuan for liabilities with interest, China Shipbuilding Industry Company Limited (601989.SH) proposes to issue 719 million shares to its controlling shareholder China Shipbuilding Industry Corporation and the subsidiaries Mr Bigboat Investment Co., Ltd and Wuhan Boat Investment Co., Ltd. through private placement. The company indicated that this private placement will improve the military building capability, and optimize the capital structure.
TOP
[Financial Reports Express]
○Dilong New Material increases performance forecast in semi-annual report
------
Zhejiang Dilong New Material Co., Ltd. (002247.SZ) revised its growth rate forecast to 150-180 percent from original 10-40 percent according to its semi-annual report, mainly due to combining financial statement with Mei Sheng Yuan Technology Co., Ltd.
○Winning Health Technology and Porton Fine Chemicals forecast performance growth in semi-annual reports
------
Winning Health Technology Group Co., Ltd. (300253.SZ) predicts a growth rate of 619-644 percent in its semi-annual report, mainly due to investment returns;50-70 percent for Porton Fine Chemicals Ltd. (300363.SZ), mainly due to improvement in supply chain management.
[Trading Trends]
○Dehua TB New Decoration Material bought through five institutional seats
------
The trading volume ranking list on June 28 shows that Dehua TB New Decoration Material Co., Ltd. (002043.SZ) was bought through five institutional seats with a total of 121 million yuan, accounting for 7.3 percent of its intraday turnover.
Comment: It is mainly engaged in the R＆D, production and sales of interior decoration materials. Last year, it proposed a strategy of "customized household appliances design service" to step in this field. Institutions believed that this strategy has accumulated rich advantages in production and high-quality distribution channel sharing. After acquiring Hangzhou Duoying Network Technology Co., Ltd., it has organized specialized team to positively push and develop the e-commerce business, with wide growth space in next one or two years.
[Trading Alarms]
○Haiqi Transportation to issue new shares on June 29
------
The offering price of Hainan Haiqi Transportation Group Co., Ltd. (632069.SH) is 3.82 yuan, with a P/E ratio of 18 times, and 23,000 shares as upper limit for subscription. It is mainly engaged in tourists transportation business.
TOP
○Made-in-China regional jet starts commercial operation, companies involved in industrial chain to see benefit
○China Water Rights Exchange sets up, NDRC to launch medical services pricing reform
○Biggest shareholder of Winsan Medical Science and Technology altered to BDG, actual controllers of Oriental Energy and Zonfa Trinity Technology to launch shareholding increase plans
○Dilong New Material increases performance forecast in semi-annual report, Dehua TB New Decoration Material bought through five institutional seats
[SSN Focus]
○Made-in-China regional jet starts commercial operation, companies involved in industrial chain to see benefit
------
The made-in-China regional jet ARJ21-700 carrying 70 passengers officially started commercial operation on Jun 28, becoming the first airplane with completely independent intellectual property being put into operation in China's civil aviation industry. Commercial Aircraft Corporation of China, Ltd. (COMAC) indicated that series products of ARJ21 jet will be launched as soon as possible in the future to expand market share. According to plans, 5 ARJ21 jets will be delivered before the year end, 2 of which have 90 seats and the rest 3 have 78 seats. It is expected that totally 30 jets will be delivered in next 5-6 years.
Comment: The commercial operation of ARJ21-700 marks that China has stepped another stride forward on the way to build independent aviation industry. China is also working on made-in-China big airplane C919 now and the maiden flight might be launched in the second half. Research report by Essence Securities shows that as the project of made-in-China big airplane advances and the domestication level improves, the R＆D companies and supporting equipment companies involved in the industrial chain will all have a finger in the pie. Companies including Avic Aircraft Co., Ltd. (000768.SZ), China Avionics Systems Co., Ltd. (600372.SH) and Jiangxi Hongdu Aviation Industry Co., Ltd. (600316.SH) are involved in the R＆D and production of big airplane and components.
[SSN Selection]
○The Standing Committee of the National People's Congress (NPC) on June 28 deliberated the draft of the network security law. Some members suggest that the state's ability to cope with the threats from network security should be strengthened legally.
○The State Council printed and distributed the Decisions about Improving the Lightning Protection Permit of Construction Projects, requiring ensuring lightning protection of construction projects by intensifying supervision during and after the events.
○The 6th China International Smart Grid Construction Technology and Equipment Expo will be kicked off on June 29 with energy Internet highlighted.
○Qihoo 360 Technology Co. Ltd. indicated that the financial group of privatization is striving to meet the rest conditions for the merger. It is expected to be completed in mid-August.
○Shenzhen Tellus Holding Co., Ltd. (000025.SZ), which surged to the daily limit of 10 percent for four consecutive trading days in recent period, announced trading suspension from June 29 due to great deviation resulted by upsurge.
TOP
[Industry Information]
○China Water Rights Exchange sets up, boosting water treatment industry
------
www.cnr.cn reported that China Water Rights Exchange officially opens to business on June 28. The exchange's registered capital is 600 million yuan. The establishment of water rights exchange will enhance efficient water use by allocating water resources via market mechanism. Water right trading refers to the transfer of the right to use water resources between upstream and downstream, across industries and among different users in different regions and different river basins on the basis of reasonably defining and allocating the right to use water resources.
Comment: BOC International noted in its research report that driven by the strictest water resource management system and water rights trading, the water treatment industry will see rapid development. During the 13th Five-Year Plan period, nearly 50 percent investment in environmental protection will be used for water environment treatment. Sewage treatment enterprises are expected to expand their market shares by developing recycling water. As for listed companies, sewage treatment enterprises, such as Wuhan Sanzhen Industry Holding Co., Ltd. (600168.SH) and Tianjin Capital Environmental Protection Group Company Limited (600874.SH), are expected to benefit from the rising value of water rights.
○NDRC to launch medical services pricing reform, privately-run hospitals to see benefit
------
The news spokesman of the National Development and Reform Commission (NDRC) indicated on June 28 that the NDRC will jointly issue the Opinions on Promoting the Pricing Reform in Medical Services, being approved by the State Council, together with the National Health and Family Planning Commission, the Ministry of Human Resources and Social Security and the Ministry of Finance. The Opinions is a key part in the pharmaceutical and health system reform and a companion policy in promoting pricing reform for pharmaceuticals released last year. It is reported that local authorities will implement the reform on the pricing of medical services from July 1 at the soonest. The charges of CT, magnetic resonance and other large equipment examination will be reduced significantly. The charges for diagnosis and treatment and operations of chief physicians will rise.
Comment: The market-oriented pricing will stimulate medical staff, form a reasonable appraisal on the professional value, guide and encourage social capital to move faster in entering the medical service field, and advance the formation of diversified hospital running structure. Research report by Zhongtai Securities believes that Aier Eye Hospital Group Co., Ltd. (300015.SZ), Guizhou Xinbang Pharmaceutical Co., Ltd. (002390.SZ) and Top Choice Medical Investment Co., Inc. (600763.SH) are respectively engaged in ophthalmology, oncology and stomatology which see high net profit ratio, and they might embrace rapid expansion.
TOP
[Announcement Interpretation]
○Biggest shareholder of Winsan Medical Science and Technology altered to BDG
------
The biggest shareholder of Winsan(shanghai)Medical Science and Technology Co., Ltd. (600767.SH), Juche Group, transfer its directly-held 53,508,300 shares (15.69 percent of the total equity) of the listed company to Sichuan BD Asset Management Co., Ltd. at a price of 15.7 yuan per share, and the total transaction price is 840 million yuan. After the trading, BD Asset Management will hold 15.69 percent equities of the listed company, making it the largest shareholder. Meanwhile, BD Asset Management also plans to increase the shareholdings no less than 3 percent and no more than 5 percent equities in next 12 months, if the price of the listed company does not excess 25 yuan per share.
BDG, held by Dai Xuebin and Dong Xiang who are the actual controllers of BD Asset Management, has many businesses including real estate development, property management and etc. Up to the end of 2015, its net asset totaled at 10,638 million yuan. For this transfer, BDG indicated that its main purpose is to effectively integrate the resources through listed company's platform, and enhance the core competitiveness.
○Actual controllers of Oriental Energy and Zonfa Trinity Technology to launch shareholding increase plan respectively
------
Zhou Yifeng, the actual controller of Oriental Energy Co., Ltd. (002221.SZ), plans to increase the shareholdings in the listed company in next six months with no more than 300 million yuan. The proportion will not be less than 0.5 percent equities or more than 2 percent equities. The actual controller of TongLing Zonfa Trinity Technology Co., Ltd. (600520.SH) proposes to increase the shareholdings in the listed company in next 12 months with no less than 1 percent equity.
○Price of Pien Tze Huang to raise
------
Zhangzhou Pientzehuang Pharmaceutical Co., Ltd. (600436.SH) will increase the factory price of Pien Tze Huang, its main product. The retail price will be raised to 500 yuan per unit from 460 yuan per unit in the market.
○Estun Automation to acquire robot enterprise for RMB76 mln
------
NanJing Estun Automation Co., Ltd. (002747.SZ) plans to acquire the 100 percent equities of Shanghai Prex MFG Co., Ltd. for 76 million yuan. Prex MFG features in advantages of international technology in industrial robot system integration, such as robot deliver, painting, inset, trimming and buffing, and mainly provides services for automobile and related component enterprises. The transferor expects net profit of Prex MFG will be 7.8, 9.7 and 9.7 million yuan respectively from 2016 to 2018.
○China Shipbuilding Industry to raise RMB3.9 bln through private placement for liabilities
------
In order to raise 3.9 billion yuan for liabilities with interest, China Shipbuilding Industry Company Limited (601989.SH) proposes to issue 719 million shares to its controlling shareholder China Shipbuilding Industry Corporation and the subsidiaries Mr Bigboat Investment Co., Ltd and Wuhan Boat Investment Co., Ltd. through private placement. The company indicated that this private placement will improve the military building capability, and optimize the capital structure.
TOP
[Financial Reports Express]
○Dilong New Material increases performance forecast in semi-annual report
------
Zhejiang Dilong New Material Co., Ltd. (002247.SZ) revised its growth rate forecast to 150-180 percent from original 10-40 percent according to its semi-annual report, mainly due to combining financial statement with Mei Sheng Yuan Technology Co., Ltd.
○Winning Health Technology and Porton Fine Chemicals forecast performance growth in semi-annual reports
------
Winning Health Technology Group Co., Ltd. (300253.SZ) predicts a growth rate of 619-644 percent in its semi-annual report, mainly due to investment returns;50-70 percent for Porton Fine Chemicals Ltd. (300363.SZ), mainly due to improvement in supply chain management.
[Trading Trends]
○Dehua TB New Decoration Material bought through five institutional seats
------
The trading volume ranking list on June 28 shows that Dehua TB New Decoration Material Co., Ltd. (002043.SZ) was bought through five institutional seats with a total of 121 million yuan, accounting for 7.3 percent of its intraday turnover.
Comment: It is mainly engaged in the R＆D, production and sales of interior decoration materials. Last year, it proposed a strategy of "customized household appliances design service" to step in this field. Institutions believed that this strategy has accumulated rich advantages in production and high-quality distribution channel sharing. After acquiring Hangzhou Duoying Network Technology Co., Ltd., it has organized specialized team to positively push and develop the e-commerce business, with wide growth space in next one or two years.
[Trading Alarms]
○Haiqi Transportation to issue new shares on June 29
------
The offering price of Hainan Haiqi Transportation Group Co., Ltd. (632069.SH) is 3.82 yuan, with a P/E ratio of 18 times, and 23,000 shares as upper limit for subscription. It is mainly engaged in tourists transportation business.
TOP
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