[Today's Guide]
○Opinions for price reform of medical service issued, private hospitals likely to see faster development
○High-class network issue seminar to hold, network security frequently attracts policy attention
○Coal Gasification to introduce assets of Blue Flame Coalbed Methane, Zhongzhi assets bought shares of Fasten through secondary market acquisition to the 5 percent for three times
○Tronly New Electronic Materials and Linyang Energy proposes high share conversion and dividend, Profits of Sinnet Technology and other firms expected to hike
TOP
[SSN Focus]
○Opinions for price reform of medical service issued, private hospitals likely to see faster development
------
Four authorities including National Development and Reform Commission issued Opinions on Promoting Price Reform of Medical Service on July 6. It requires that the comprehensive reform should focus on public hospitals, consider to cancel the drug price addition and local subsidy policy, and synchronously adjust the price of medical service. The key point is to raise the medical service price which shows value of medical workers' technical service, such as diagnosis ＆ treatment, operation, recover, medical care and traditional Chinese medicine, and lower the prices of examination, treatment and inspection carried out by large medical equipment.
Comment: Zhongtai Securities points out that promoting the price reform of medical service is a must way to reduce drug proportion, and show the value of medical treatment. Private hospitals with excellent services and flexible mechanism are likely to gain faster development. Based on institutional prediction, by 2017, the beds of private hospitals will exceed 1.33 million, with patients over 500 million person / time. (600763.SH) constantly expands the dental business under a mode of "fleet hospital branches". Zhejiang University Mingzhou Hospital under Top Choice Medical Investment Co., Inc. (601567.SH) is the largest private hospital in Zhejiang Province. Jiangsu Aoyang Technology Corporation Limited. (002172.SZ) recently announced that it proposes to raise fund for hospital construction through private placement.
[SSN Selection]
○Jushenghua continued to increase 3,099,300 shareholdings in China Vanke Co., Ltd. (000002.SZ) on July 6. After the transaction, subsidiaries of Shenzhen Qianhai Co., Ltd. will totally hold 25 percent shares of China Vanke.
○National Development and Reform Commission decides to improve the implementation pattern of basic electric power price of the two different parts based users to support the transformation of enterprises and reduce their costs.
○Telephone number of welfare lottery ticket center and marketing projects for internet based welfare lottery ticket sales on People.cn is likely to show that openness of the online sales of welfare lottery ticket is on the way.
○Experts in the interview indicated that recent heavy rains will not influence the grain production so much, but hit the aquatic products and pigs.
○AVIC Real Estate Holding Company Limited (000043.SZ) will suspend the trading from July 7, as Aviation Industry Corporation of China and China Poly Group Corporation plan restructuring ＆ integration scheme of real estate businesses.
TOP
[Industrial Information]
○High-class network issue seminar to hold, network security frequently attracts policy attention
------
Based on spokesman of Ministry of Foreign Affairs (MOFA), the UN and China will jointly host an international seminar on network issues from July 11 and 12. At that time, MOFA officers, UN Undersecretary General and nearly 30 governmental representatives will attend the seminar. It is the second one jointly hosted by the UN and China since 2014.
Comment: Current network security threats are complicated and diversified. Formulating the international rules generally accepted by each party as soon as possible to guard the network space's stability and prosperity has become the international consensus. Recently, Russia and China jointly announce to initiate the second review of a draft for law related to information network space's development and security. Network security frequently attracts policy attention, likely to speed up a market of 100 billion yuan. A leading company in password and security integration named Westone Information Industry Inc. (002268.SZ), electronic forensics magnate Xiamen Meiya Pico Information Co., Ltd. (300188.SZ) and Beijing TRS Information Technology Co., Ltd. (300229.SZ) with opinion monitoring ＆ analysis business are preferred by institutions.
○Yun-20 airplane listed in Chinese air force, likely to boost demands for military materials
------
According to Xinhua News Agency, a ceremony for Yun-20 airplane of Chinese air force is held on July 6. Shen Jinke, press spokesman of the air force, indicated that this plane independently developed by China is officially listed in the troop of Chinese air force, marking a key step of strategic projection capability of the air force. It is a strategic, remarkable and leading equipment for the army, which is a large and multi-use transportation airplane with a loading ability of 200 tons developed by China. It can execute long-distance air transportation task in complicated weather.
Comment: China Investment Securities believed that it is a core product, and will boost the demands for military materials of upstream industry. Ti materials, high temperature alloy and forge piece for aviation will be largely needed. Wedge Industrial Co., Ltd. (000534.SZ) brings in core technical team, and successfully refines nearly 300 furnaces of high temperature alloys in terms of technical R＆D to this respect. Beijing Cisri-gaona Materials ＆ Technology Co., Ltd. (300034.SZ) gains a market share of over 90 percent in the precision castings for aviation motor, with an obvious advantage in products related to high temperature alloy.
TOP
[Announcement Interpretation]
○Coal Gasification to introduce assets of Blue Flame Coalbed Methane
------
Taiyuan Coal Gasification Company Limited (000968.SZ) plans to exchange out its major assets and liabilities at 856 million yuan and introduce 100 percent equity of Shanxi Blue Flame Coalbed Methane Group Co., Ltd. at 3.073 billion yuan. The balance will be paid in cash of 500 million yuan and by issuing about 263 million shares at a price of 6.53 yuan per share through private placement. Meanwhile, the company intends to raise supporting funds of 1.317 billion yuan by issuing shares at a price of 6.9 yuan per share through private placement. Blue Flame Coalbed Methane Group promises its net profit after extraordinary gains and losses will be 350 million yuan, 532 million yuan and 687 million yuan during 2016 and 2018 respectively. Coal Gasification suspended trading from last December and its stock price was 8.71 yuan per share before that.
○Zhongzhi assets bought shares of Fasten through secondary market acquisition to the 5 percent for three times
------
Jiangyin Yaobo Taibang Investment Center, shareholder of Jiangsu Fasten Company Limited (000890.SZ), continued to increase its shareholding in the company by 18.98 million shares at a price ranging from 9.80 yuan to 11.09 yuan per share during May 15 and July 4. The total shares accounted for 15 percent of the company's share capital. Yaobo Taibang Investment Center once bought the company's shares through secondary market acquisition to the 5 percent limit twice in one week in May. Indirect shareholder of Yaobo Taibang Investment Center is Zhongzhi Capital Management Company and its actual controller can be traced back to Xie Zhikun, founder of Zhongzhi Enterprise Group.
○Create Technology ＆ Science raise RMB496 mln through private placement to invest in PV industry
------
Create Technology ＆ Science Co., Ltd. plans to raise 496 million yuan at a price of 7.95 yuan per share through private placement to purchase 100 percent equity of Hanshou Haohui Solar Power Generation Company Limited and Artes Funing Photovoltaic Power Generation Company and make investment in the two companies respectively. It issued shares to Suzhou City Construction Investment Development Co., Ltd. under the State-owned Assets of Supervision and Administration Commission of Suzhou Municipal Government and Suzhou Cultural International Travel Agency, which will hold 10.78 percent equity and 4.87 percent equity of Create Technology ＆ Science respectively after the transaction is finished.
○Mineral resources of Australian subsidiary of Ganfeng Lithium increase significantly
------
The amount of mineral resources of lithium mineral project of Mt Marion under Reed Industrial Minerals Pty Ltd., an Australian subsidiary of Jiangxi Ganfeng Lithium Co., Ltd. (002460.SZ) (holding 43.1% equity in the company), is estimated to increase by 160 percent, up from 23.24 million tons (including 1.39 percent lithium oxide) to 60.50 million tons including 1.36 percent lithium oxide and 1.09 percent iron oxide.
○Hengyi Petrochemical to raise RMB300 mln through employee shareholding plan
------
Hengyi Petrochemical Co., Ltd. (000703.SZ) plans to raise no more than 98.90 million yuan from employees to subscribe inferior shares of No. 947 assembled funds trust of Huian. The trust plan sets up priority shares at a proportion of 1:2 and the fundraising of 297 million yuan will be used to buy the company's shares. The company's senior managers will subscribe 18.47 percent shares of the above-said employee shareholding plan.
○Commercial Mansion Grand Orient holds 50 million shares of Bank of Jiangsu
------
Wuxi Commercial Mansion Grand Orient Co., Ltd. releases an announcement that it holds 50 million shares of Bank of Jiangsu, which will launch IPO on July 20.
TOP
[Financial Reports Express]
○Tronly New Electronic Materials and Linyang Energy proposes high share conversion and dividend
------
Actual controller of Changzhou Tronly New Electronic Materials Co., Ltd. (300429.SZ) proposes a 21-for-10 conversion of capital surplus into shares in its semiannual report. Actual controller of Jiangsu Linyang Energy Co., Ltd. (601222.SH) proposes a 25-for-10 conversion of capital surplus into shares combined with 2 yuan dividend for every 10 shares in its semiannual report.
○Profits of Sinnet Technology and other firms expected to hike
------
Profits of Beijing Sinnet Technology Co., Ltd. (300383.SZ) are expected to grow by 179-200 percent according to its semiannual report mainly due to consolidated financial statements of Beijing Meganest Technology Company and Beijing AnG Technology Company. Owing to consolidated financial statements with Hengdian Innuovo Imports ＆ Exports Company, earnings of Innuovo Technology Co., Ltd. (000795.SZ) are expected to hike by 319-424 percent in its semiannual report. Expected growth of profits of Nanjing Yunhai Special Metals Co., Ltd. (002182.SZ) is upwardly revised from 269-318 percent to 317-363 percent due to sales increase of magnesium resulting from price hike. Thanks to growth in operating revenue, profits of Hainan Shennong Gene Technology Co., Ltd. (300189.SZ) are expected to climb by 751-1,601 percent according to the company's semiannual report.
Gansu Jiu Steel Group Hongxing Iron ＆ Steel Co., Ltd. (600307.SH) reported earnings of 227 million yuan according its semiannual report, turning losses into profits due to steal price picking up. Profits of Sinopec Shanghai Petrochemical Company Limited (600688.SH) are predicted to move up by 70-90 percent due to increase in gross margin.
[Trading Trends]
○Cooltech Power bought through four institutional seats
------
The trading volume ranking list on July 6 shows that Shanghai Cooltech Power Co., Ltd. (300153.SZ) was bought through four institutional seats with a total of 209 million yuan, accounting for 27 percent of its intraday turnover.
Comment: Institutions believe that the company is a leader in operation of new energy vehicles and has established subsidiaries in Beijing municipality, Guangdong and Fujian provinces with business covering economic regions in Yangtze River Delta, Pearl River Delta and Beijing-Tianjin-Hebei region. The company's business also includes electric motor, electronic control and ternary material. Ecosphere of new energy vehicle is gradually established, so the company is expected to see rapid development.
[Trading Alarms]
○Haibo Heavy Engineering Science and Technology to launch IPO on July 7
------
Haibo Heavy Engineering Science and Technology Co., Ltd. (300517.SZ) is going to launch IPO at a price of 10.04 yuan per share with upper limit of 10,000 shares for single account. The PE ratio is 23 times. The company is engaged in bridge steel structure engineering.
TOP
○Opinions for price reform of medical service issued, private hospitals likely to see faster development
○High-class network issue seminar to hold, network security frequently attracts policy attention
○Coal Gasification to introduce assets of Blue Flame Coalbed Methane, Zhongzhi assets bought shares of Fasten through secondary market acquisition to the 5 percent for three times
○Tronly New Electronic Materials and Linyang Energy proposes high share conversion and dividend, Profits of Sinnet Technology and other firms expected to hike
TOP
[SSN Focus]
○Opinions for price reform of medical service issued, private hospitals likely to see faster development
------
Four authorities including National Development and Reform Commission issued Opinions on Promoting Price Reform of Medical Service on July 6. It requires that the comprehensive reform should focus on public hospitals, consider to cancel the drug price addition and local subsidy policy, and synchronously adjust the price of medical service. The key point is to raise the medical service price which shows value of medical workers' technical service, such as diagnosis ＆ treatment, operation, recover, medical care and traditional Chinese medicine, and lower the prices of examination, treatment and inspection carried out by large medical equipment.
Comment: Zhongtai Securities points out that promoting the price reform of medical service is a must way to reduce drug proportion, and show the value of medical treatment. Private hospitals with excellent services and flexible mechanism are likely to gain faster development. Based on institutional prediction, by 2017, the beds of private hospitals will exceed 1.33 million, with patients over 500 million person / time. (600763.SH) constantly expands the dental business under a mode of "fleet hospital branches". Zhejiang University Mingzhou Hospital under Top Choice Medical Investment Co., Inc. (601567.SH) is the largest private hospital in Zhejiang Province. Jiangsu Aoyang Technology Corporation Limited. (002172.SZ) recently announced that it proposes to raise fund for hospital construction through private placement.
[SSN Selection]
○Jushenghua continued to increase 3,099,300 shareholdings in China Vanke Co., Ltd. (000002.SZ) on July 6. After the transaction, subsidiaries of Shenzhen Qianhai Co., Ltd. will totally hold 25 percent shares of China Vanke.
○National Development and Reform Commission decides to improve the implementation pattern of basic electric power price of the two different parts based users to support the transformation of enterprises and reduce their costs.
○Telephone number of welfare lottery ticket center and marketing projects for internet based welfare lottery ticket sales on People.cn is likely to show that openness of the online sales of welfare lottery ticket is on the way.
○Experts in the interview indicated that recent heavy rains will not influence the grain production so much, but hit the aquatic products and pigs.
○AVIC Real Estate Holding Company Limited (000043.SZ) will suspend the trading from July 7, as Aviation Industry Corporation of China and China Poly Group Corporation plan restructuring ＆ integration scheme of real estate businesses.
TOP
[Industrial Information]
○High-class network issue seminar to hold, network security frequently attracts policy attention
------
Based on spokesman of Ministry of Foreign Affairs (MOFA), the UN and China will jointly host an international seminar on network issues from July 11 and 12. At that time, MOFA officers, UN Undersecretary General and nearly 30 governmental representatives will attend the seminar. It is the second one jointly hosted by the UN and China since 2014.
Comment: Current network security threats are complicated and diversified. Formulating the international rules generally accepted by each party as soon as possible to guard the network space's stability and prosperity has become the international consensus. Recently, Russia and China jointly announce to initiate the second review of a draft for law related to information network space's development and security. Network security frequently attracts policy attention, likely to speed up a market of 100 billion yuan. A leading company in password and security integration named Westone Information Industry Inc. (002268.SZ), electronic forensics magnate Xiamen Meiya Pico Information Co., Ltd. (300188.SZ) and Beijing TRS Information Technology Co., Ltd. (300229.SZ) with opinion monitoring ＆ analysis business are preferred by institutions.
○Yun-20 airplane listed in Chinese air force, likely to boost demands for military materials
------
According to Xinhua News Agency, a ceremony for Yun-20 airplane of Chinese air force is held on July 6. Shen Jinke, press spokesman of the air force, indicated that this plane independently developed by China is officially listed in the troop of Chinese air force, marking a key step of strategic projection capability of the air force. It is a strategic, remarkable and leading equipment for the army, which is a large and multi-use transportation airplane with a loading ability of 200 tons developed by China. It can execute long-distance air transportation task in complicated weather.
Comment: China Investment Securities believed that it is a core product, and will boost the demands for military materials of upstream industry. Ti materials, high temperature alloy and forge piece for aviation will be largely needed. Wedge Industrial Co., Ltd. (000534.SZ) brings in core technical team, and successfully refines nearly 300 furnaces of high temperature alloys in terms of technical R＆D to this respect. Beijing Cisri-gaona Materials ＆ Technology Co., Ltd. (300034.SZ) gains a market share of over 90 percent in the precision castings for aviation motor, with an obvious advantage in products related to high temperature alloy.
TOP
[Announcement Interpretation]
○Coal Gasification to introduce assets of Blue Flame Coalbed Methane
------
Taiyuan Coal Gasification Company Limited (000968.SZ) plans to exchange out its major assets and liabilities at 856 million yuan and introduce 100 percent equity of Shanxi Blue Flame Coalbed Methane Group Co., Ltd. at 3.073 billion yuan. The balance will be paid in cash of 500 million yuan and by issuing about 263 million shares at a price of 6.53 yuan per share through private placement. Meanwhile, the company intends to raise supporting funds of 1.317 billion yuan by issuing shares at a price of 6.9 yuan per share through private placement. Blue Flame Coalbed Methane Group promises its net profit after extraordinary gains and losses will be 350 million yuan, 532 million yuan and 687 million yuan during 2016 and 2018 respectively. Coal Gasification suspended trading from last December and its stock price was 8.71 yuan per share before that.
○Zhongzhi assets bought shares of Fasten through secondary market acquisition to the 5 percent for three times
------
Jiangyin Yaobo Taibang Investment Center, shareholder of Jiangsu Fasten Company Limited (000890.SZ), continued to increase its shareholding in the company by 18.98 million shares at a price ranging from 9.80 yuan to 11.09 yuan per share during May 15 and July 4. The total shares accounted for 15 percent of the company's share capital. Yaobo Taibang Investment Center once bought the company's shares through secondary market acquisition to the 5 percent limit twice in one week in May. Indirect shareholder of Yaobo Taibang Investment Center is Zhongzhi Capital Management Company and its actual controller can be traced back to Xie Zhikun, founder of Zhongzhi Enterprise Group.
○Create Technology ＆ Science raise RMB496 mln through private placement to invest in PV industry
------
Create Technology ＆ Science Co., Ltd. plans to raise 496 million yuan at a price of 7.95 yuan per share through private placement to purchase 100 percent equity of Hanshou Haohui Solar Power Generation Company Limited and Artes Funing Photovoltaic Power Generation Company and make investment in the two companies respectively. It issued shares to Suzhou City Construction Investment Development Co., Ltd. under the State-owned Assets of Supervision and Administration Commission of Suzhou Municipal Government and Suzhou Cultural International Travel Agency, which will hold 10.78 percent equity and 4.87 percent equity of Create Technology ＆ Science respectively after the transaction is finished.
○Mineral resources of Australian subsidiary of Ganfeng Lithium increase significantly
------
The amount of mineral resources of lithium mineral project of Mt Marion under Reed Industrial Minerals Pty Ltd., an Australian subsidiary of Jiangxi Ganfeng Lithium Co., Ltd. (002460.SZ) (holding 43.1% equity in the company), is estimated to increase by 160 percent, up from 23.24 million tons (including 1.39 percent lithium oxide) to 60.50 million tons including 1.36 percent lithium oxide and 1.09 percent iron oxide.
○Hengyi Petrochemical to raise RMB300 mln through employee shareholding plan
------
Hengyi Petrochemical Co., Ltd. (000703.SZ) plans to raise no more than 98.90 million yuan from employees to subscribe inferior shares of No. 947 assembled funds trust of Huian. The trust plan sets up priority shares at a proportion of 1:2 and the fundraising of 297 million yuan will be used to buy the company's shares. The company's senior managers will subscribe 18.47 percent shares of the above-said employee shareholding plan.
○Commercial Mansion Grand Orient holds 50 million shares of Bank of Jiangsu
------
Wuxi Commercial Mansion Grand Orient Co., Ltd. releases an announcement that it holds 50 million shares of Bank of Jiangsu, which will launch IPO on July 20.
TOP
[Financial Reports Express]
○Tronly New Electronic Materials and Linyang Energy proposes high share conversion and dividend
------
Actual controller of Changzhou Tronly New Electronic Materials Co., Ltd. (300429.SZ) proposes a 21-for-10 conversion of capital surplus into shares in its semiannual report. Actual controller of Jiangsu Linyang Energy Co., Ltd. (601222.SH) proposes a 25-for-10 conversion of capital surplus into shares combined with 2 yuan dividend for every 10 shares in its semiannual report.
○Profits of Sinnet Technology and other firms expected to hike
------
Profits of Beijing Sinnet Technology Co., Ltd. (300383.SZ) are expected to grow by 179-200 percent according to its semiannual report mainly due to consolidated financial statements of Beijing Meganest Technology Company and Beijing AnG Technology Company. Owing to consolidated financial statements with Hengdian Innuovo Imports ＆ Exports Company, earnings of Innuovo Technology Co., Ltd. (000795.SZ) are expected to hike by 319-424 percent in its semiannual report. Expected growth of profits of Nanjing Yunhai Special Metals Co., Ltd. (002182.SZ) is upwardly revised from 269-318 percent to 317-363 percent due to sales increase of magnesium resulting from price hike. Thanks to growth in operating revenue, profits of Hainan Shennong Gene Technology Co., Ltd. (300189.SZ) are expected to climb by 751-1,601 percent according to the company's semiannual report.
Gansu Jiu Steel Group Hongxing Iron ＆ Steel Co., Ltd. (600307.SH) reported earnings of 227 million yuan according its semiannual report, turning losses into profits due to steal price picking up. Profits of Sinopec Shanghai Petrochemical Company Limited (600688.SH) are predicted to move up by 70-90 percent due to increase in gross margin.
[Trading Trends]
○Cooltech Power bought through four institutional seats
------
The trading volume ranking list on July 6 shows that Shanghai Cooltech Power Co., Ltd. (300153.SZ) was bought through four institutional seats with a total of 209 million yuan, accounting for 27 percent of its intraday turnover.
Comment: Institutions believe that the company is a leader in operation of new energy vehicles and has established subsidiaries in Beijing municipality, Guangdong and Fujian provinces with business covering economic regions in Yangtze River Delta, Pearl River Delta and Beijing-Tianjin-Hebei region. The company's business also includes electric motor, electronic control and ternary material. Ecosphere of new energy vehicle is gradually established, so the company is expected to see rapid development.
[Trading Alarms]
○Haibo Heavy Engineering Science and Technology to launch IPO on July 7
------
Haibo Heavy Engineering Science and Technology Co., Ltd. (300517.SZ) is going to launch IPO at a price of 10.04 yuan per share with upper limit of 10,000 shares for single account. The PE ratio is 23 times. The company is engaged in bridge steel structure engineering.
TOP
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