[Today's Guide]
○Some fund companies develop rapidly, relevant listed companies see benefit
○Investment in semiconductor field constantly increases, relevant materials and equipment to see higher demands
○Shares of Terca Technology transferred with premium, Hengshun Zhongsheng to purchase equity of finance leasing company
○Controlling shareholder of Yuanli Active Carbon to transfer equities through negotiating, net profits of Biolight Meditech expected to rise
TOP
[SSN Focus]
○Some fund companies develop rapidly, relevant listed companies see benefit
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Boosted by the booming market in recent two years, some medium and small-sized fund companies embrace rapid development and see largely increased income from asset management. Caitong Fund Management Co., Ltd. participated in the private placements of listed companies with 45.9 billion yuan and recorded a float profit of 8.1 billion yuan in 2015, and most of its private placement products will mature this year. It is estimated that Caitong Fund Management will record a profit of 700-800 million yuan this year. Zhejiang Shenghua Biok Biology Co., Ltd. (600226.SH), holding 30 percent equities of Caitong Fund Management, recently forecasted a growth of 50-90 percent in its semiyearly report. The growth is mainly contributed by Caitong Fund Management.
According to statistics by SSN, Guomai Technologies, Inc. (002093.SZ) holds 24 percent equities of Huafu Fund, and the latter is a dark horse ranking 34 despite of its only two-year operation. Guomai Technologies gained 5.72 million yuan from investment in Q1 of 2016. The profit, mainly contributed by Huafu Fund, approaches the total profit gained by the company throughout 2015. It can be estimated that even if the size of Huafu Fund no longer expands, the profit throughout 2016 will still exceed 100 million yuan, representing a year-on-year growth of around 300 percent. In addition, Daheng New Epoch Technology, Inc. (600288.SH) holds 20 percent equities of Lion Fund Management Co., Ltd. and Shanghai Haixin Group Co., Ltd. (600851.SH) holds 34 percent equities of Changxin Asset Management Co., Ltd. Both the two fund companies see certain growth in the size of asset management this year.
[SSN Selection]
○Xu Shaoshi, chairman of the National Development and Reform Commission, required on July 7 to ensure smooth completion of the goals and tasks set for the de-capacity in the iron ＆ steel and the coal industries in 2016.
○Investigation shows that the production lines of iron enterprises located in the middle and lower reaches of Yangtze River see limited impact from heavy rains; the experts being surveyed believe that the construction related to flood prevention will drive long-term demand.
○As it is introduced by the Ministry of Foreign Affairs, the 18th China-EU Summit will be inaugurated on July 12. It is the highest-level dialogue mechanism between China and the European Union (EU).
○China's foreign exchange reserve climbed up by 13.5 billion U.S. dollars in June. The increasing allocation of RMB-denominated assets by long-term investors at overseas is one of the driving forces.
○The liquidity injected by Chinese central bank via reverse repo hit new low in nearly three months on July 7. But it did not change the easing liquidity supply in the inter-bank market.
TOP
[Industry Information]
○Investment in semiconductor field constantly increases, relevant materials and equipment to see higher demands
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The 12-inch wafer factory, which is invested by Taiwan Semiconductor Manufacturing Company Limited (TSMC) with 3 billion U.S. dollars in Nanjing, commences construction on July 7. In addition, the storage and integrated circuit project of Fujian Jinhua Integrated Circuit Co., Ltd. will commence construction in mid-July. The Semiconductor Equipment and Materials International (SEMI) announced at least 19 wafer factories to be established in 2016 and 2017, 10 of which are located in China. Institutes estimate that the overall expenses of wafer factories will reach 36 billion U.S. dollars and 40.7 billion U.S. dollars in 2016 and 2017, representing an increase of approximately 13 percent.
Comment: Securities companies believe that driven by the construction of wafer factories and the domestication, the integrated circuit is expected to boom and the demands in the materials, equipment and packaging and testing industry will surge. Tianshui Huatian Technology Co., Ltd. (002185.SZ), a leading domestic company engaged in the packaging and testing of integrated circuit (IC), has gained investment from national IC industrial fund; Shanghai Sinyang Semiconductor Materials Co., Ltd. (300236.SZ) is principally engaged in electronic chemicals and TSMC is a potential customer of the company.
TOP
[Announcement Interpretation]
○Original substantial shareholder of Terca Technology transfers 7.28 pct shares with premium
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Zhang Huimin, original substantial shareholder of Shenzhen Terca Technology Co., Ltd. (002213.SZ), transferred 15 million shares of the company, accounting for 7.28 percent of the company's total share capital, at 25 yuan per share to Shenzhen Chuangtongjiali Investment Partnership. Upon completion of the transaction, the shareholding by Zhang will be decreased to 7.28 percent, and both Zhang and Chuangtongjiali will be listed as the second substantial shareholder of Terca Technology. Ling Zhaowei, original second substantial shareholder of the company, together with the persons acting in concert will totally hold 12.86 percent equities of the company and become the largest shareholder. The shareholding of Ling once was also largely reduced in early 2016. Latest stock price of Terca Technology stands at 23.28 yuan per share.
○Hengshun Zhongsheng to purchase equity of finance leasing company
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Qingdao Hengshun Zhongsheng Group Co., Ltd. (300208.SZ) plans to purchase 18 percent equity of Qingdao Urban and Rural Construction Finance Leasing Company, which is a Sino-foreign joint venture finance leasing company specialized in finance leasing business. The finance leasing company achieved net profits of 96.73 million yuan in 2015 and 40.5 million yuan during January and March of 2016. TOP
○Controlling shareholder of Yuanli Active Carbon to transfer over 10 pct equity through negotiating
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Wang Yanan, controlling shareholder of Fujian Yuanli Active Carbon Co., Ltd. (300174.SZ) intends to transfer 14.07 million shares of the company to Yuan Yonggang at a price of 21.50 yuan per share, accounting for 10.35 percent of the company's total share capital. Yuan is one of controlling shareholder of Suzhou Dongshan Precision Manufacturing Co., Ltd. (002384.SZ). After the transfer is done, Wang and her husband still hold 44 percent equity of the company and they sold 5.63 million shares of the company through block trading one week ago. The latest stock price of Yuanli Active Carbon is 24.19 yuan per share.
○BYD won orders for new energy vehicles valued at RMB2 bln
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BYD Automobile Company, a subsidiary of BYD Company Limited (002594.SZ), won the bidding of project selling 2,919 units of new energy vehicles and 832 units of new energy buses to Shenzhen Western Bus Co., Ltd. in 2016. The total amount involved in the two projects is about 1.99 billion yuan (excluding national and local governmental subsidiaries).
○Guoyuan Securities to add capital funds through private placement
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Guoyuan Securities Company Limited (000728.SZ) plans to raise 4.287 billion yuan by issuing 294 million shares at a price of 14.57 yuan per share through private placement to add the company's capital funds and supplement working capital. Anhui Guoyuan Holding (Group) Co., Ltd., controlling shareholder of the company, will subscribe 50 million shares.
[Financial Reports Express]
○Net profits of Biolight Meditech expected to rise according to semiannual report
------
Net profits of Guangdong Biolight Meditech Co., Ltd. (300246.SZ) are predicted to increase by 240-270 percent in its semiannual report mainly due to income increase of hemodialysis products. As price of raw material silver hikes, which affects cycle inventory cost and boosts gross margin, net profits of Wenzhou Hongfeng Electrical Alloy Co., Ltd. (300283) are estimated to soar by 130-160 percent. Owing to confirmation of credit's rights and interests, net profits of Leshan Electric Power Co., Ltd. (600644.SH) is expected to rise by 300-370 percent in its semiannual report.
As production facilities run at full capacity, product sales climb remarkably. Therefore, net profits of Shandong Shida Shenghua Chemical Group Co., Ltd. (603026.SH) are expected to hike by 191 percent in the first half of this year. Growth of net profits of Qianjiang Yongan Pharmaceutical Co., Ltd. (002365.SZ) is upward revised from 0-50 percent to 150-200 percent mainly thanks to increasing sales of taurine.
[Trading Trends]
○Jinling Pharmaceutical Company bought through three institutional seats
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The trading volume ranking list on July 7 shows that Jinling Pharmaceutical Company Limited (000919.SZ) was bought through three institutional seats with a total of 87.946 million yuan, accounting for 17.2 percent of its intraday turnover.
Comment: SSN reported on July 6 that four ministries and commissions including National Development and Reform Commission released Guidance on Promoting Medical Service Price Reform yesterday. Private institutions with advantages in excellent service and flexible mechanism are expected to see rapid development. According to annual report of Jinling Pharmaceutical Company, it controls three comprehensive hospitals, including Suqian Hospital, which is a middle first-class hospital, Yizheng Hospital and Anqing Hospital, which are upper second-class hospitals.
TOP
○Some fund companies develop rapidly, relevant listed companies see benefit
○Investment in semiconductor field constantly increases, relevant materials and equipment to see higher demands
○Shares of Terca Technology transferred with premium, Hengshun Zhongsheng to purchase equity of finance leasing company
○Controlling shareholder of Yuanli Active Carbon to transfer equities through negotiating, net profits of Biolight Meditech expected to rise
TOP
[SSN Focus]
○Some fund companies develop rapidly, relevant listed companies see benefit
------
Boosted by the booming market in recent two years, some medium and small-sized fund companies embrace rapid development and see largely increased income from asset management. Caitong Fund Management Co., Ltd. participated in the private placements of listed companies with 45.9 billion yuan and recorded a float profit of 8.1 billion yuan in 2015, and most of its private placement products will mature this year. It is estimated that Caitong Fund Management will record a profit of 700-800 million yuan this year. Zhejiang Shenghua Biok Biology Co., Ltd. (600226.SH), holding 30 percent equities of Caitong Fund Management, recently forecasted a growth of 50-90 percent in its semiyearly report. The growth is mainly contributed by Caitong Fund Management.
According to statistics by SSN, Guomai Technologies, Inc. (002093.SZ) holds 24 percent equities of Huafu Fund, and the latter is a dark horse ranking 34 despite of its only two-year operation. Guomai Technologies gained 5.72 million yuan from investment in Q1 of 2016. The profit, mainly contributed by Huafu Fund, approaches the total profit gained by the company throughout 2015. It can be estimated that even if the size of Huafu Fund no longer expands, the profit throughout 2016 will still exceed 100 million yuan, representing a year-on-year growth of around 300 percent. In addition, Daheng New Epoch Technology, Inc. (600288.SH) holds 20 percent equities of Lion Fund Management Co., Ltd. and Shanghai Haixin Group Co., Ltd. (600851.SH) holds 34 percent equities of Changxin Asset Management Co., Ltd. Both the two fund companies see certain growth in the size of asset management this year.
[SSN Selection]
○Xu Shaoshi, chairman of the National Development and Reform Commission, required on July 7 to ensure smooth completion of the goals and tasks set for the de-capacity in the iron ＆ steel and the coal industries in 2016.
○Investigation shows that the production lines of iron enterprises located in the middle and lower reaches of Yangtze River see limited impact from heavy rains; the experts being surveyed believe that the construction related to flood prevention will drive long-term demand.
○As it is introduced by the Ministry of Foreign Affairs, the 18th China-EU Summit will be inaugurated on July 12. It is the highest-level dialogue mechanism between China and the European Union (EU).
○China's foreign exchange reserve climbed up by 13.5 billion U.S. dollars in June. The increasing allocation of RMB-denominated assets by long-term investors at overseas is one of the driving forces.
○The liquidity injected by Chinese central bank via reverse repo hit new low in nearly three months on July 7. But it did not change the easing liquidity supply in the inter-bank market.
TOP
[Industry Information]
○Investment in semiconductor field constantly increases, relevant materials and equipment to see higher demands
------
The 12-inch wafer factory, which is invested by Taiwan Semiconductor Manufacturing Company Limited (TSMC) with 3 billion U.S. dollars in Nanjing, commences construction on July 7. In addition, the storage and integrated circuit project of Fujian Jinhua Integrated Circuit Co., Ltd. will commence construction in mid-July. The Semiconductor Equipment and Materials International (SEMI) announced at least 19 wafer factories to be established in 2016 and 2017, 10 of which are located in China. Institutes estimate that the overall expenses of wafer factories will reach 36 billion U.S. dollars and 40.7 billion U.S. dollars in 2016 and 2017, representing an increase of approximately 13 percent.
Comment: Securities companies believe that driven by the construction of wafer factories and the domestication, the integrated circuit is expected to boom and the demands in the materials, equipment and packaging and testing industry will surge. Tianshui Huatian Technology Co., Ltd. (002185.SZ), a leading domestic company engaged in the packaging and testing of integrated circuit (IC), has gained investment from national IC industrial fund; Shanghai Sinyang Semiconductor Materials Co., Ltd. (300236.SZ) is principally engaged in electronic chemicals and TSMC is a potential customer of the company.
TOP
[Announcement Interpretation]
○Original substantial shareholder of Terca Technology transfers 7.28 pct shares with premium
------
Zhang Huimin, original substantial shareholder of Shenzhen Terca Technology Co., Ltd. (002213.SZ), transferred 15 million shares of the company, accounting for 7.28 percent of the company's total share capital, at 25 yuan per share to Shenzhen Chuangtongjiali Investment Partnership. Upon completion of the transaction, the shareholding by Zhang will be decreased to 7.28 percent, and both Zhang and Chuangtongjiali will be listed as the second substantial shareholder of Terca Technology. Ling Zhaowei, original second substantial shareholder of the company, together with the persons acting in concert will totally hold 12.86 percent equities of the company and become the largest shareholder. The shareholding of Ling once was also largely reduced in early 2016. Latest stock price of Terca Technology stands at 23.28 yuan per share.
○Hengshun Zhongsheng to purchase equity of finance leasing company
------
Qingdao Hengshun Zhongsheng Group Co., Ltd. (300208.SZ) plans to purchase 18 percent equity of Qingdao Urban and Rural Construction Finance Leasing Company, which is a Sino-foreign joint venture finance leasing company specialized in finance leasing business. The finance leasing company achieved net profits of 96.73 million yuan in 2015 and 40.5 million yuan during January and March of 2016. TOP
○Controlling shareholder of Yuanli Active Carbon to transfer over 10 pct equity through negotiating
------
Wang Yanan, controlling shareholder of Fujian Yuanli Active Carbon Co., Ltd. (300174.SZ) intends to transfer 14.07 million shares of the company to Yuan Yonggang at a price of 21.50 yuan per share, accounting for 10.35 percent of the company's total share capital. Yuan is one of controlling shareholder of Suzhou Dongshan Precision Manufacturing Co., Ltd. (002384.SZ). After the transfer is done, Wang and her husband still hold 44 percent equity of the company and they sold 5.63 million shares of the company through block trading one week ago. The latest stock price of Yuanli Active Carbon is 24.19 yuan per share.
○BYD won orders for new energy vehicles valued at RMB2 bln
------
BYD Automobile Company, a subsidiary of BYD Company Limited (002594.SZ), won the bidding of project selling 2,919 units of new energy vehicles and 832 units of new energy buses to Shenzhen Western Bus Co., Ltd. in 2016. The total amount involved in the two projects is about 1.99 billion yuan (excluding national and local governmental subsidiaries).
○Guoyuan Securities to add capital funds through private placement
------
Guoyuan Securities Company Limited (000728.SZ) plans to raise 4.287 billion yuan by issuing 294 million shares at a price of 14.57 yuan per share through private placement to add the company's capital funds and supplement working capital. Anhui Guoyuan Holding (Group) Co., Ltd., controlling shareholder of the company, will subscribe 50 million shares.
[Financial Reports Express]
○Net profits of Biolight Meditech expected to rise according to semiannual report
------
Net profits of Guangdong Biolight Meditech Co., Ltd. (300246.SZ) are predicted to increase by 240-270 percent in its semiannual report mainly due to income increase of hemodialysis products. As price of raw material silver hikes, which affects cycle inventory cost and boosts gross margin, net profits of Wenzhou Hongfeng Electrical Alloy Co., Ltd. (300283) are estimated to soar by 130-160 percent. Owing to confirmation of credit's rights and interests, net profits of Leshan Electric Power Co., Ltd. (600644.SH) is expected to rise by 300-370 percent in its semiannual report.
As production facilities run at full capacity, product sales climb remarkably. Therefore, net profits of Shandong Shida Shenghua Chemical Group Co., Ltd. (603026.SH) are expected to hike by 191 percent in the first half of this year. Growth of net profits of Qianjiang Yongan Pharmaceutical Co., Ltd. (002365.SZ) is upward revised from 0-50 percent to 150-200 percent mainly thanks to increasing sales of taurine.
[Trading Trends]
○Jinling Pharmaceutical Company bought through three institutional seats
------
The trading volume ranking list on July 7 shows that Jinling Pharmaceutical Company Limited (000919.SZ) was bought through three institutional seats with a total of 87.946 million yuan, accounting for 17.2 percent of its intraday turnover.
Comment: SSN reported on July 6 that four ministries and commissions including National Development and Reform Commission released Guidance on Promoting Medical Service Price Reform yesterday. Private institutions with advantages in excellent service and flexible mechanism are expected to see rapid development. According to annual report of Jinling Pharmaceutical Company, it controls three comprehensive hospitals, including Suqian Hospital, which is a middle first-class hospital, Yizheng Hospital and Anqing Hospital, which are upper second-class hospitals.
TOP
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