[Today's Guide]
○ Prices of precious metals keep going up, ease monetary policy worldwide expected to continue
○ Price of disperse dye increases by 10 pct, two listed companies expected to benefit from the top science and technology award
○ Controlling shareholder of Sunsea Telecom changes, biggest shareholder of Haixin Group changes
○ Runda Medical Tech acquires Yidan Biotech, Bestway Marine ＆ Energy Tech forecasts H1 earnings to surge
[SSN Focus]
○ Prices of precious metals keep going up, ease monetary policy worldwide expected to continue
------
The main contracts of New York gold future and silver future closed 1.8 percent and 6.6 percent higher respectively on July 1, representing the biggest weekly gain in nearly three years. The position of the largest global gold ETF shows unilateral rise recently, and has hit the three-year new high so far. In the position report issued by the Commodity Futures Trading Commission (CFTC), net long position of hedge fund and management fund on gold reached nearly ten-year high. In China, the gold ETF has also created record-breaking scale since their listing.
Comment: though risk aversion sentiment has weakened as the UK voted to leave the EU, precious metals continued to be favored by various investors due to the expectation of ease monetary policy worldwide. Expectation on the Federal Reserve's rates hike has fallen to the lowest level; European Union recently issued a report claiming that idled production capacity is more serious than expected, which indicates that more policies should be introduced to stimulate the demand; the BOJ's report also shows that the pressure of deflation is increasing. Benefiting from the significant expansion of solar photovoltaic capacity, the industrial demand on silver is also expected to grow. Disclosed annual reports show that Henan Yuguang Gold ＆ Lead Co., Ltd. (600531.SH) and Chenzhou City Jingui Silver Industry Co., Ltd. (002716.SZ) has produced 709 and 851 tons of silver last year, ranking the top in China.
◆ The trading volume ranking list on July 1 shows that Shengda Mining Co., Ltd. (000603.SZ) was bought through four institutional seats with a total of 80.59 million yuan, accounting for 15 percent of intraday turnover. Major assets restructuring of the company has been approved by the China Securities Regulatory Commission (CSRC) recently. Institutions are rosy about that the company's core competiveness will be improved as assets injection will improve its reserve of silver, lead and zinc. Besides, actual controller of the company has participated in this additional issuance and supporting fundraising, highlighting the company's confidence of development.
[SSN Selection]
○ The CSRC on July 1 proposed to impose three strict measures on listing through reorganization; it is said that party involved in the manipulation of share price of Shenzhen Tellus Holding Co., Ltd. (000025.SZ) was imposed over 1 billion yuan penalty.
○ Both Shanghai and Shenzhen bourses have issued business guidances, introducing explicit regulations on the media briefings for companies to list through reorganization.
○ The State Assets Supervision and Administration Commission (SASAC) and the Ministry of Finance (MOF) jointly issued Supervision and Administration Methods on The Transaction of Enterprises' State-owned Assets, requiring that the change of state-owned holding must be approved.
○ China Times reported that Shenhua Group is approaching China Coal Technology＆ Engineering Group. The latter is expected to be wholly merged with the former.
○ China Vanke Co., Ltd. (000002.SZ) will resume trading from July 1. It is still uncertain whether its additional issuance to Shenzhen Metro Group will be implemented or not.
○ Fushun Special Steel Co., Ltd. (600399.SH) has received notice from its controlling shareholder, which says that it is unable to perform last year's commitment on increasing shareholding of the company.
TOP
[Industry Information]
○Price of disperse dye increases by 10 pct., as supply shrunk following stricter standards on environment governance
------
Price of disperse dye went up on July 1. The major Black EX-SF product ECT300% rose by 33 yuan per kilogram; prices of other products also increase by different levels. The demand on dye is expected to be led forward. At the same time, the government has made greater efforts on environment protection, carrying out strict examination on enterprises producing the dye intermediate H acid, and imposed penalty on unqualified enterprises. This will lead to the contraction of supply.
Comment: research report of Haitong securities said that environment protection policy in the future will become increasingly stricter. More factories will stop production after large scale renovation. Price of dye is expected to further rise. In listed companies, Zhejiang Longsheng Group Co., Ltd. (600352.SH) has 140,000 tons of disperse dyes and 70,000 tons of reactive dye capacity; Zhejiang Runtu Co., ltd. (002440.SZ) has 110,000 tons of disperse dyes and 40,000 tons of reactive dye capacity. In addition, Shanghai Anoky Group Co., ltd. (300067.SZ) has 36,000 tons of disperse dyes and over 20,000 tons of reactive dye capacity.
○ Preliminary screening of top science and technology award 2016 unveils, two listed companies expected to benefit
------
Office of the national science and technology award has recently announced that the preliminary screening work on the 2016 national science and technology award has completed. In the most concerned publicity "the nominated projects in the preliminary screening of 2016 national science and technology award", the "new neutrino oscillation mode discovered in neutrino experiment at Daya Bay reactor" led by Wang Yifang, head of the Institute of the High Energy Physics of the Chinese Academy of Sciences, won the first prize in the preliminary screening.
Comment: public data shows that spallation neutron source project under construction in Dongguan City, Guangdong Province, is a very important project under the Institute of High Energy Physics of the Chinese Academy of Sciences. In A-share market listed companies, Shenzhen Maxonic Automation Control Co., Ltd. (300112.SZ) is a equipment provider of spallation neutron source. The company indicated that it has discussed the "China spallation neutron source" project with relevant parties, and was experimenting on sample devices. The company provides signal conditioning products for this project. Zhejiang Dun'an Artificial Environment Co., Ltd. (002011.SZ) announced that it had won the bid of the project for the production of China spallation neutron source stainless enclosed air conditioning box for the Institute of High Energy Physics of the Chinese Academy of Sciences.
TOP
[Announcement Interpretation]
○ Rundatai Investment buys Sunsea Telecom's shares at 100 pct. premium, to become controlling shareholder
------
Xinyu Hairuo Investment Management Co., Ltd., the controlling shareholder of Sunsea Telecommunications Co., Ltd. (002313.SZ), proposes to transfer 61,425,000 shares (accounting for 19.69 percent of the company's total capital share) for 1.67 billion yuan via agreement to Rundatai Investment Co., Ltd. The price is about 27.19 yuan per share, a premium of 100 percent from the company's closing price before suspending trading. Except the 19.69 percent shares transferred to Rundatai Investment, Runliangtai Investment Co., Ltd., the party acting in concert with Rundatai Investment, holds 4.77 percent shares in the company.
Rundatai Investment will become new controlling shareholder of the listed company after the deal. Xue Jian will become the new actual controller. Rundatai Investment indicates that it is likely to reorganize the listed company's assets and adjust its business in the next 12 months.
○ Biggest shareholder of Haixin Group changes, Fortune Securities on the back
------
Shanghai Haixin Group Co., Ltd. (600851.SH) was notified that Huihe No.2 Fund managed by Shenzhen Huihe Co., Ltd., bought 2.81 percent shares in the company from later May to end-June. Huihe Investment and Shenzhen Ningrun Investment Management Co., Ltd., the party acting in concert with Huihe Investment, altogether hold 8.24 percent shares in the company, a proportion higher than the 6.8 percent shares held by its former substantial shareholder Shanghai Songjiang Dongjing Industrial Co., Ltd. The shareholdings in Haixin Group are rather decentralized, and the company has no controlling shareholder and actual controller so far.
Ningrun Investment Management bought the share of Haixin Group through secondary market acquisition to the 5 percent limit for the first time in February. Shenzhen Huihe Investment Co. Ltd., the parent company of the former's general partner Huihe, is a subsidiary of Fortune Securities. Fortune Securities is the only state-held securities company in Hunan Province.
TOP
○ Runda Medical Tech acquires Yidan Biotech to develop IVD
------
Shanghai Runda Medical Technology Co., Ltd. (603108.SH) proposes to acquire 45 percent equities of Hangzhou Yidan Biotechnology Co., Ltd. for 216 million yuan to become the largest shareholder of Yidan Biotechnology. Yidan Biotechnology provides in vitro diagnosis (IVD) products and professional technical support and logistics distribution services for hundreds of medical institutes in Zhejiang Province. It promises that its net profit in 2016 will be no less than 400 million yuan, and the average annual growth of its net profit after excluding the extraordinary gains or losses from 2017-2018 will be no less than 20 percent.
○ Actual controller of Canny Elevator plans to increase shareholding
------
Wang Youlin, the actual controller of Canny Elevator Co., Ltd. (002367.SZ), proposes to increase the shareholding in the company for no less than 500 million yuan and no more than 700 million yuan in the next six months. The controlling shareholder of Hna Investment Group Co., Ltd. (000616.SZ) increased the shareholding in the company by 18.09 million shares from June 30 to July 1, accounting for 1.27 percent of its total share capital.
○ Langold Real Estate conducts private placement at premium, controlling shareholder subscribes 40 pct. shares
------
Wuhan Langold Real Estate Co., Ltd. (002305.SZ) whose share prices have been lower than its issuing prices for long, issued shares at prices no less than 5.64 yuan per share through private placement. Eight fund asset management plans from three fund companies subscribed. Meanwhile, the company controlling shareholder Power China Real Estate Co., Ltd. subscribed 613.6 million yuan, accounting for about 40 percent subscriptions in the private placement. The latest share prices of Langold Real Estate closed at 5.55 yuan per share.
[Financial Reports Express]
○ Bestway Marine ＆ Energy Tech forecasts H1 earnings to surge
------
Bestway Marine ＆ Energy Technology Co., Ltd. (300008.SZ) forecasts a profit of 97.62 million to 104 million yuan for the first half year, an increase of 370 to 400 percent year on year mainly because its efforts in technological innovation, transformation and upgrading and civil-military integration have taken effects.
Zhejiang Haers Vacuum Containers Co., Ltd. (002615.SZ) revises up its earning growth forecast from 40-60 percent to 100-120 percent for the first half year mainly due to better-than-expected growth in its foreign trade business. Lanzhou Foci Pharmaceutical Co., Ltd. (002644.SZ) revises up its earning growth forecast from 10-50 to 50-80 percent for the first half year mainly due to growth in operating revenues and financing income. Leyard Optoelectronic Co., Ltd. (300296.SZ) forecasts to grow 110-130 percent for the first half year mainly due to increase in orders.
[Weekly Review]
○ Risks and earnings
------
The opposite relationship between risks and earnings has revealed over the past week.
Looking back hotspots in the market in the previous week, the most eye-catching ones were sectors that weakened immediately after the leading winners surged to the daily limit and suspended trading. Hotspots in the rare earth and sub-new sectors were changeable. One of the rules of the hotspot sector is alteration between bullish and bearish days.
From an overall aspect, we can find that although one hotspot could hardly sustain long, yet various hotspots have appeared in the market over the past two weeks. Despite the bad news for several days, the stock index still stood above the lowest point in its recovery. We speculate boldly that this will be a feature of the market in the current stage: the stock indexes remain in a range, and there will be investment opportunities amid shifting hotspots along with divergence of information.
Based on the judgment, SSN reported the consolidation of Baoshan Iron ＆ Steel Co., Ltd. (600019.SH) and Wuhan Iron and Steel(Group) Corp. (600005.SH), the debut of ARJ passenger plane and the upcoming cold chain industry exhibition, and received great response from the market. We will continue to work hard to provide better information service for our readers.
TOP
○ Prices of precious metals keep going up, ease monetary policy worldwide expected to continue
○ Price of disperse dye increases by 10 pct, two listed companies expected to benefit from the top science and technology award
○ Controlling shareholder of Sunsea Telecom changes, biggest shareholder of Haixin Group changes
○ Runda Medical Tech acquires Yidan Biotech, Bestway Marine ＆ Energy Tech forecasts H1 earnings to surge
[SSN Focus]
○ Prices of precious metals keep going up, ease monetary policy worldwide expected to continue
------
The main contracts of New York gold future and silver future closed 1.8 percent and 6.6 percent higher respectively on July 1, representing the biggest weekly gain in nearly three years. The position of the largest global gold ETF shows unilateral rise recently, and has hit the three-year new high so far. In the position report issued by the Commodity Futures Trading Commission (CFTC), net long position of hedge fund and management fund on gold reached nearly ten-year high. In China, the gold ETF has also created record-breaking scale since their listing.
Comment: though risk aversion sentiment has weakened as the UK voted to leave the EU, precious metals continued to be favored by various investors due to the expectation of ease monetary policy worldwide. Expectation on the Federal Reserve's rates hike has fallen to the lowest level; European Union recently issued a report claiming that idled production capacity is more serious than expected, which indicates that more policies should be introduced to stimulate the demand; the BOJ's report also shows that the pressure of deflation is increasing. Benefiting from the significant expansion of solar photovoltaic capacity, the industrial demand on silver is also expected to grow. Disclosed annual reports show that Henan Yuguang Gold ＆ Lead Co., Ltd. (600531.SH) and Chenzhou City Jingui Silver Industry Co., Ltd. (002716.SZ) has produced 709 and 851 tons of silver last year, ranking the top in China.
◆ The trading volume ranking list on July 1 shows that Shengda Mining Co., Ltd. (000603.SZ) was bought through four institutional seats with a total of 80.59 million yuan, accounting for 15 percent of intraday turnover. Major assets restructuring of the company has been approved by the China Securities Regulatory Commission (CSRC) recently. Institutions are rosy about that the company's core competiveness will be improved as assets injection will improve its reserve of silver, lead and zinc. Besides, actual controller of the company has participated in this additional issuance and supporting fundraising, highlighting the company's confidence of development.
[SSN Selection]
○ The CSRC on July 1 proposed to impose three strict measures on listing through reorganization; it is said that party involved in the manipulation of share price of Shenzhen Tellus Holding Co., Ltd. (000025.SZ) was imposed over 1 billion yuan penalty.
○ Both Shanghai and Shenzhen bourses have issued business guidances, introducing explicit regulations on the media briefings for companies to list through reorganization.
○ The State Assets Supervision and Administration Commission (SASAC) and the Ministry of Finance (MOF) jointly issued Supervision and Administration Methods on The Transaction of Enterprises' State-owned Assets, requiring that the change of state-owned holding must be approved.
○ China Times reported that Shenhua Group is approaching China Coal Technology＆ Engineering Group. The latter is expected to be wholly merged with the former.
○ China Vanke Co., Ltd. (000002.SZ) will resume trading from July 1. It is still uncertain whether its additional issuance to Shenzhen Metro Group will be implemented or not.
○ Fushun Special Steel Co., Ltd. (600399.SH) has received notice from its controlling shareholder, which says that it is unable to perform last year's commitment on increasing shareholding of the company.
TOP
[Industry Information]
○Price of disperse dye increases by 10 pct., as supply shrunk following stricter standards on environment governance
------
Price of disperse dye went up on July 1. The major Black EX-SF product ECT300% rose by 33 yuan per kilogram; prices of other products also increase by different levels. The demand on dye is expected to be led forward. At the same time, the government has made greater efforts on environment protection, carrying out strict examination on enterprises producing the dye intermediate H acid, and imposed penalty on unqualified enterprises. This will lead to the contraction of supply.
Comment: research report of Haitong securities said that environment protection policy in the future will become increasingly stricter. More factories will stop production after large scale renovation. Price of dye is expected to further rise. In listed companies, Zhejiang Longsheng Group Co., Ltd. (600352.SH) has 140,000 tons of disperse dyes and 70,000 tons of reactive dye capacity; Zhejiang Runtu Co., ltd. (002440.SZ) has 110,000 tons of disperse dyes and 40,000 tons of reactive dye capacity. In addition, Shanghai Anoky Group Co., ltd. (300067.SZ) has 36,000 tons of disperse dyes and over 20,000 tons of reactive dye capacity.
○ Preliminary screening of top science and technology award 2016 unveils, two listed companies expected to benefit
------
Office of the national science and technology award has recently announced that the preliminary screening work on the 2016 national science and technology award has completed. In the most concerned publicity "the nominated projects in the preliminary screening of 2016 national science and technology award", the "new neutrino oscillation mode discovered in neutrino experiment at Daya Bay reactor" led by Wang Yifang, head of the Institute of the High Energy Physics of the Chinese Academy of Sciences, won the first prize in the preliminary screening.
Comment: public data shows that spallation neutron source project under construction in Dongguan City, Guangdong Province, is a very important project under the Institute of High Energy Physics of the Chinese Academy of Sciences. In A-share market listed companies, Shenzhen Maxonic Automation Control Co., Ltd. (300112.SZ) is a equipment provider of spallation neutron source. The company indicated that it has discussed the "China spallation neutron source" project with relevant parties, and was experimenting on sample devices. The company provides signal conditioning products for this project. Zhejiang Dun'an Artificial Environment Co., Ltd. (002011.SZ) announced that it had won the bid of the project for the production of China spallation neutron source stainless enclosed air conditioning box for the Institute of High Energy Physics of the Chinese Academy of Sciences.
TOP
[Announcement Interpretation]
○ Rundatai Investment buys Sunsea Telecom's shares at 100 pct. premium, to become controlling shareholder
------
Xinyu Hairuo Investment Management Co., Ltd., the controlling shareholder of Sunsea Telecommunications Co., Ltd. (002313.SZ), proposes to transfer 61,425,000 shares (accounting for 19.69 percent of the company's total capital share) for 1.67 billion yuan via agreement to Rundatai Investment Co., Ltd. The price is about 27.19 yuan per share, a premium of 100 percent from the company's closing price before suspending trading. Except the 19.69 percent shares transferred to Rundatai Investment, Runliangtai Investment Co., Ltd., the party acting in concert with Rundatai Investment, holds 4.77 percent shares in the company.
Rundatai Investment will become new controlling shareholder of the listed company after the deal. Xue Jian will become the new actual controller. Rundatai Investment indicates that it is likely to reorganize the listed company's assets and adjust its business in the next 12 months.
○ Biggest shareholder of Haixin Group changes, Fortune Securities on the back
------
Shanghai Haixin Group Co., Ltd. (600851.SH) was notified that Huihe No.2 Fund managed by Shenzhen Huihe Co., Ltd., bought 2.81 percent shares in the company from later May to end-June. Huihe Investment and Shenzhen Ningrun Investment Management Co., Ltd., the party acting in concert with Huihe Investment, altogether hold 8.24 percent shares in the company, a proportion higher than the 6.8 percent shares held by its former substantial shareholder Shanghai Songjiang Dongjing Industrial Co., Ltd. The shareholdings in Haixin Group are rather decentralized, and the company has no controlling shareholder and actual controller so far.
Ningrun Investment Management bought the share of Haixin Group through secondary market acquisition to the 5 percent limit for the first time in February. Shenzhen Huihe Investment Co. Ltd., the parent company of the former's general partner Huihe, is a subsidiary of Fortune Securities. Fortune Securities is the only state-held securities company in Hunan Province.
TOP
○ Runda Medical Tech acquires Yidan Biotech to develop IVD
------
Shanghai Runda Medical Technology Co., Ltd. (603108.SH) proposes to acquire 45 percent equities of Hangzhou Yidan Biotechnology Co., Ltd. for 216 million yuan to become the largest shareholder of Yidan Biotechnology. Yidan Biotechnology provides in vitro diagnosis (IVD) products and professional technical support and logistics distribution services for hundreds of medical institutes in Zhejiang Province. It promises that its net profit in 2016 will be no less than 400 million yuan, and the average annual growth of its net profit after excluding the extraordinary gains or losses from 2017-2018 will be no less than 20 percent.
○ Actual controller of Canny Elevator plans to increase shareholding
------
Wang Youlin, the actual controller of Canny Elevator Co., Ltd. (002367.SZ), proposes to increase the shareholding in the company for no less than 500 million yuan and no more than 700 million yuan in the next six months. The controlling shareholder of Hna Investment Group Co., Ltd. (000616.SZ) increased the shareholding in the company by 18.09 million shares from June 30 to July 1, accounting for 1.27 percent of its total share capital.
○ Langold Real Estate conducts private placement at premium, controlling shareholder subscribes 40 pct. shares
------
Wuhan Langold Real Estate Co., Ltd. (002305.SZ) whose share prices have been lower than its issuing prices for long, issued shares at prices no less than 5.64 yuan per share through private placement. Eight fund asset management plans from three fund companies subscribed. Meanwhile, the company controlling shareholder Power China Real Estate Co., Ltd. subscribed 613.6 million yuan, accounting for about 40 percent subscriptions in the private placement. The latest share prices of Langold Real Estate closed at 5.55 yuan per share.
[Financial Reports Express]
○ Bestway Marine ＆ Energy Tech forecasts H1 earnings to surge
------
Bestway Marine ＆ Energy Technology Co., Ltd. (300008.SZ) forecasts a profit of 97.62 million to 104 million yuan for the first half year, an increase of 370 to 400 percent year on year mainly because its efforts in technological innovation, transformation and upgrading and civil-military integration have taken effects.
Zhejiang Haers Vacuum Containers Co., Ltd. (002615.SZ) revises up its earning growth forecast from 40-60 percent to 100-120 percent for the first half year mainly due to better-than-expected growth in its foreign trade business. Lanzhou Foci Pharmaceutical Co., Ltd. (002644.SZ) revises up its earning growth forecast from 10-50 to 50-80 percent for the first half year mainly due to growth in operating revenues and financing income. Leyard Optoelectronic Co., Ltd. (300296.SZ) forecasts to grow 110-130 percent for the first half year mainly due to increase in orders.
[Weekly Review]
○ Risks and earnings
------
The opposite relationship between risks and earnings has revealed over the past week.
Looking back hotspots in the market in the previous week, the most eye-catching ones were sectors that weakened immediately after the leading winners surged to the daily limit and suspended trading. Hotspots in the rare earth and sub-new sectors were changeable. One of the rules of the hotspot sector is alteration between bullish and bearish days.
From an overall aspect, we can find that although one hotspot could hardly sustain long, yet various hotspots have appeared in the market over the past two weeks. Despite the bad news for several days, the stock index still stood above the lowest point in its recovery. We speculate boldly that this will be a feature of the market in the current stage: the stock indexes remain in a range, and there will be investment opportunities amid shifting hotspots along with divergence of information.
Based on the judgment, SSN reported the consolidation of Baoshan Iron ＆ Steel Co., Ltd. (600019.SH) and Wuhan Iron and Steel(Group) Corp. (600005.SH), the debut of ARJ passenger plane and the upcoming cold chain industry exhibition, and received great response from the market. We will continue to work hard to provide better information service for our readers.
TOP
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