[Today's Guide]
○ 13th Five-year Plan on Sports Industry released, various reforms to carry out
○ Home-grown nuclear-grade DCS certified by IAEA to promote industry development
○ Yilida Ventilator to develop new energy vehicles components, Runying Investment bought share of Quanyechang (Group) through secondary market acquisition to 5 percent threshold
○ Actual controller of Kingee Culture Development again plans to increase shareholding, Enlight Media expects significant growth in interim report
[SSN Focus]
○ 13th Five-year Plan on Sports Industry released, various reforms to carry out
------
The General Administration of Sport (GAS) released the 13th Five-year Plan on the Sports Industry on its website on July 13, setting out eight key industries, including competition performance, bodybuilding and entertainment, venues services, sports agency, sports training, sports media, sports products and sports lottery. It will speed up in the innovation of the sports lottery industry and actively promote the issuing of soccer lotteries based in the professional league of Chinese soccer. It will promote reforms in the operation of sports venues, individual sports association and professional sports.
Comment: China's sports industry enjoys huge growth potential. With the opening of sports venues, professional events and other core resources, the renovation of venues, events operation and public entertainment and bodybuilding and other industries will benefit. China Sports Industry Group Co., Ltd. (600158.SH), the only listed company under the GAS and HL Corp (Shenzhen) (002105.SZ), which develops bodybuilding and rehabilitation devices, catch attention of research institutes. In terms of lotteries, People.cn Co., Ltd. (603000.SH) is the only party won the bidding for the marketing of welfare lotteries. Institutes believe with the reinitiating of the Internet-based lotteries sales, Okooo under People.cn owns various sales experience.
[SSN Selection]
○ The latest Bohai-Rim Steam-Coal Price Index hiked 3 yuan to 417 yuan per ton. The actual quoted price has reached 420 to 425 yuan boosted by the booming demand in the downstream.
○ The total RMB-denominated exports increased 1.3 percent year on year in June, slightly better than the market expectation.
○ The central bank of China renewed the MLF with 259 billion yuan on time on July 13 with the interest rate unchanged.
○ Baidu released the trinity strategy eith "cloud computing big data artificial intelligence" on July 13 to establish an open cloud products matrix.
○ Leshi Internet Information ＆ Technology Corp., Beijing (300104.SZ) indicated that the report about its acquisition of U.S. TV manufacturer Vizio is untrue. The company has completed the payment through non-public issuance and will resume trading on July 14.
TOP
[Industry Information]
○ Home-grown nuclear-grade DCS certified by IAEA to promote industry development
------
China's home-grown nuclear-grade digitizer control system (DCS) "Firm System" developed by China General Nuclear Power Group (CGN) was certified by the International Atomic Energy Agency (IAEA). It means that China's own nuclear power equipment has made new progresses and breaks the foreign monopoly. The main functions of the Firm System is to protect and control the nuclear reactor and monitor all parameters in the operation of nuclear power stations on a real-time basis and automatically judge the operation conditions. It is significant to the safe, reliable and stable operation of nuclear power stations.
Comment: Securities companies estimate that China will initiate the approval of new nuclear power units and the bidding for equipment in the second half. Based on the medium- and long-term development targets of the nuclear power in China, the installed nuclear power capacity will reach 58 million kilowatt by 2020, of which about 30 million kilowatt are under construction. The investment in nuclear power equipment will reach 360 billion yuan. Jiangsu Shentong Valve Co., Ltd. (002438.SZ) is a leader in the manufacturing of nuclear power valves. Zhejiang Jiuli Hi-tech Metals Co., Ltd. (002318.SZ) has provided nuclear power tubes for 43 units in domestic and overseas nuclear power stations.
TOP
[Announcement Interpretation]
○ Yilida Ventilator to acquire Tiecheng Information to develop new energy vehicles components
------
Zhejiang Yilida Ventilator Co., Ltd. (002686.SZ) proposes to acquire 100 percent equities of Tiecheng Information with 625 million yuan, 217.5 million yuan of which will be paid by issuing shares at 13.7 yuan per share through private placement and 400 million yuan will be paid in cash. Meanwhile, the company will issue shares at no less than 11.52 yuan per share to raise a supporting fund of 217.5 million yuan.
The products of Tiecheng Information include vehicle-mounted chargers, DC converters and display instruments for battery capacities and are applied in electric vehicles and uninterruptible power supply, solar energy power generation and wind power generation. It committed that the net profit after extraordinary items will be 50 million yuan, 65 million yuan and 80 million yuan from 2016 to 2018. Yilida Ventilator is currently engaged in the manufacturing of air-conditioners, construction and cold-chain draught fans. It will develop new energy vehicles components after the completion of the acquisition.
○ Runying Investment bought share of Quanyechang (Group) through secondary market acquisition to 5 percent threshold, controller of Tianrun Digital Entertainment＆ cultural Media behind the acquisition
------
Tianjin Quanyechang (Group) Co., ltd. (600821.SH) announced that Runying Investment has bought 20,813,400 shares of the company in total from July 5 to July 12, reaching the 5 percent threshold. The average price of the acquisition is 9.267 yuan per share. The latest price of Quanyechang (Group) is 9.72 yuan per share. Runying Investment indicated that this acquisition to the 5 percent threshold is on the basis of recognition of the company's operation principle and development strategy. Runying Investment is likely to continue increase shareholding in the next twelve months.
Comment: public information shows that Runying Investment was previously a shareholder of Xinjiang Baihuacun Co., Ltd. (600721.SH). Its sole shareholder Guangdong Hengrun Huxing Assets Management Company Limited is a company under Lai Jinfeng, the actual controller of Hunan Tianrun Digital Entertainment＆ cultural Media Co .,ltd. (002113.SZ).
TOP
○ Actual controller of Kingee Culture Development again plans to increase shareholding
------
After fulfilled the plan of increase holding 2,030,000 shares of the company, Zhong Cong, actual controller of Beijing Kingee Culture Development Co., Ltd. (002721.SZ), again proposed to increase shareholding in the company, to increase holding no more than 300 million yuan worth of shares of the company within one year. The purpose of increase shareholding demonstrates his confidence of the company's future development and reasonable judgement on the value of the company's shares.
○ Eerduosi Resources to expand cashmere clothing business through private placement
------
Inner Mongolia Eerduosi Resources Co., Ltd. (600295.SH) proposes to issue 417 million shares at no less than 6.95 yuan per share to raise 2.9 billion yuan, which will be used for the marketing channel expansion and brand upgrading construction project, R＆D production system upgrading construction project and informatization system upgrading construction project.
[Financial Reports Express]
○ Enlight Media expects significant growth in interim report
------
Beijing Enlight Media Co., Ltd. (300251.SZ) expects 277 percent to 302 percent growth in its interim report, primarily due to sharp increase in income from film. Jinzhou Cihang Group Co., Ltd. (000587.SZ) expects growth of six times in its interim report, primarily due to the combination of Fenghui Leasing in its financial statement and price hike of gold. Hunan Gold Corporation Limited (002155.SZ) expects 150 percent to 200 percent growth in its interim report, primarily due to price hike of gold. Myhome Real Estate Development Group Co., ltd. (000667.SZ) upwardly revises its growth from 3 times to 6 times, primarily due to significant increase in clearing income of residential building. Bode Energy Equipment Co., Ltd. (300023.SZ) expects 4 times growth in its interim report, primarily due to combination of Qinghui Leasing in its financial statement.
Tonghua Golden-horse Pharmaceutical Industry Co., ltd. (000766.SZ) expects 9 to 10 times growth in its interim report, primarily due to combination of Shengtai Biology in its financial statement. Xinjiang Tianrun Dairy Co., Ltd. (600419.SH) expects 155 percent growth in its interim report, primarily due to the growth of sales. Wangsu Science ＆ Technology Co., ltd. (300017.SZ) expects 60 percent to 90 percent growth in its interim report, primarily due to continuously rapid growth of its business. Xingyuan Environment Technology Co., Ltd. (300266.SZ) expects 2 times growth in its interim report, primarily due to combination of Zhongyi Ecology in its financial statement.
○ Xinchao Energy to resume trading after proposed high share conversion and dividend
------
Shandong Xinchao Energy Corporation Limited (600777.SH) proposes 28-for-10 conversion of capital surplus into shares in its interim report. The company has carefully reviewed and answered Shanghai Stock Exchange's enquiries, and will resume trading from July 14.
[Trading Trends]
○ Digital China Group bought through five institutional seats
------
The trading volume ranking list on July 13 shows that Digital China Group Co., ltd. (000034.SZ) was bought through five institutional seats with a total of 83,696,700 yuan, accounting for 16.6 percent of intraday turnover; another two institutional seats sold with 40,631,400 yuan.
Comment: the company's private placement plan has been approved at the general meeting of shareholders. Institutions believe that this private placement is marked by long locked-up period, low discount rate for issuing price, and high percentage of internal subscription. It has demonstrated management's confidence about future development. In addition, Yunke Service, which the company proposes to acquire, has reached agreements with global top IT service providers such as IBM, Microsoft and Cisco. The company has huge development potential as it has transferred to cloud computing.
[Trading Alarms]
○ Huafon Group to debut IPO on July 14
------
Huafon Group (002860.SZ) will debut its IPO with the issuing price of 6.2 yuan per share. The upper limit for subscription is 20,000 shares. The PE ratio is 23 times. The company is primarily engaged in key raw material electrolytic capacitor foils for aluminum electrolysis capacitor.
TOP
○ 13th Five-year Plan on Sports Industry released, various reforms to carry out
○ Home-grown nuclear-grade DCS certified by IAEA to promote industry development
○ Yilida Ventilator to develop new energy vehicles components, Runying Investment bought share of Quanyechang (Group) through secondary market acquisition to 5 percent threshold
○ Actual controller of Kingee Culture Development again plans to increase shareholding, Enlight Media expects significant growth in interim report
[SSN Focus]
○ 13th Five-year Plan on Sports Industry released, various reforms to carry out
------
The General Administration of Sport (GAS) released the 13th Five-year Plan on the Sports Industry on its website on July 13, setting out eight key industries, including competition performance, bodybuilding and entertainment, venues services, sports agency, sports training, sports media, sports products and sports lottery. It will speed up in the innovation of the sports lottery industry and actively promote the issuing of soccer lotteries based in the professional league of Chinese soccer. It will promote reforms in the operation of sports venues, individual sports association and professional sports.
Comment: China's sports industry enjoys huge growth potential. With the opening of sports venues, professional events and other core resources, the renovation of venues, events operation and public entertainment and bodybuilding and other industries will benefit. China Sports Industry Group Co., Ltd. (600158.SH), the only listed company under the GAS and HL Corp (Shenzhen) (002105.SZ), which develops bodybuilding and rehabilitation devices, catch attention of research institutes. In terms of lotteries, People.cn Co., Ltd. (603000.SH) is the only party won the bidding for the marketing of welfare lotteries. Institutes believe with the reinitiating of the Internet-based lotteries sales, Okooo under People.cn owns various sales experience.
[SSN Selection]
○ The latest Bohai-Rim Steam-Coal Price Index hiked 3 yuan to 417 yuan per ton. The actual quoted price has reached 420 to 425 yuan boosted by the booming demand in the downstream.
○ The total RMB-denominated exports increased 1.3 percent year on year in June, slightly better than the market expectation.
○ The central bank of China renewed the MLF with 259 billion yuan on time on July 13 with the interest rate unchanged.
○ Baidu released the trinity strategy eith "cloud computing big data artificial intelligence" on July 13 to establish an open cloud products matrix.
○ Leshi Internet Information ＆ Technology Corp., Beijing (300104.SZ) indicated that the report about its acquisition of U.S. TV manufacturer Vizio is untrue. The company has completed the payment through non-public issuance and will resume trading on July 14.
TOP
[Industry Information]
○ Home-grown nuclear-grade DCS certified by IAEA to promote industry development
------
China's home-grown nuclear-grade digitizer control system (DCS) "Firm System" developed by China General Nuclear Power Group (CGN) was certified by the International Atomic Energy Agency (IAEA). It means that China's own nuclear power equipment has made new progresses and breaks the foreign monopoly. The main functions of the Firm System is to protect and control the nuclear reactor and monitor all parameters in the operation of nuclear power stations on a real-time basis and automatically judge the operation conditions. It is significant to the safe, reliable and stable operation of nuclear power stations.
Comment: Securities companies estimate that China will initiate the approval of new nuclear power units and the bidding for equipment in the second half. Based on the medium- and long-term development targets of the nuclear power in China, the installed nuclear power capacity will reach 58 million kilowatt by 2020, of which about 30 million kilowatt are under construction. The investment in nuclear power equipment will reach 360 billion yuan. Jiangsu Shentong Valve Co., Ltd. (002438.SZ) is a leader in the manufacturing of nuclear power valves. Zhejiang Jiuli Hi-tech Metals Co., Ltd. (002318.SZ) has provided nuclear power tubes for 43 units in domestic and overseas nuclear power stations.
TOP
[Announcement Interpretation]
○ Yilida Ventilator to acquire Tiecheng Information to develop new energy vehicles components
------
Zhejiang Yilida Ventilator Co., Ltd. (002686.SZ) proposes to acquire 100 percent equities of Tiecheng Information with 625 million yuan, 217.5 million yuan of which will be paid by issuing shares at 13.7 yuan per share through private placement and 400 million yuan will be paid in cash. Meanwhile, the company will issue shares at no less than 11.52 yuan per share to raise a supporting fund of 217.5 million yuan.
The products of Tiecheng Information include vehicle-mounted chargers, DC converters and display instruments for battery capacities and are applied in electric vehicles and uninterruptible power supply, solar energy power generation and wind power generation. It committed that the net profit after extraordinary items will be 50 million yuan, 65 million yuan and 80 million yuan from 2016 to 2018. Yilida Ventilator is currently engaged in the manufacturing of air-conditioners, construction and cold-chain draught fans. It will develop new energy vehicles components after the completion of the acquisition.
○ Runying Investment bought share of Quanyechang (Group) through secondary market acquisition to 5 percent threshold, controller of Tianrun Digital Entertainment＆ cultural Media behind the acquisition
------
Tianjin Quanyechang (Group) Co., ltd. (600821.SH) announced that Runying Investment has bought 20,813,400 shares of the company in total from July 5 to July 12, reaching the 5 percent threshold. The average price of the acquisition is 9.267 yuan per share. The latest price of Quanyechang (Group) is 9.72 yuan per share. Runying Investment indicated that this acquisition to the 5 percent threshold is on the basis of recognition of the company's operation principle and development strategy. Runying Investment is likely to continue increase shareholding in the next twelve months.
Comment: public information shows that Runying Investment was previously a shareholder of Xinjiang Baihuacun Co., Ltd. (600721.SH). Its sole shareholder Guangdong Hengrun Huxing Assets Management Company Limited is a company under Lai Jinfeng, the actual controller of Hunan Tianrun Digital Entertainment＆ cultural Media Co .,ltd. (002113.SZ).
TOP
○ Actual controller of Kingee Culture Development again plans to increase shareholding
------
After fulfilled the plan of increase holding 2,030,000 shares of the company, Zhong Cong, actual controller of Beijing Kingee Culture Development Co., Ltd. (002721.SZ), again proposed to increase shareholding in the company, to increase holding no more than 300 million yuan worth of shares of the company within one year. The purpose of increase shareholding demonstrates his confidence of the company's future development and reasonable judgement on the value of the company's shares.
○ Eerduosi Resources to expand cashmere clothing business through private placement
------
Inner Mongolia Eerduosi Resources Co., Ltd. (600295.SH) proposes to issue 417 million shares at no less than 6.95 yuan per share to raise 2.9 billion yuan, which will be used for the marketing channel expansion and brand upgrading construction project, R＆D production system upgrading construction project and informatization system upgrading construction project.
[Financial Reports Express]
○ Enlight Media expects significant growth in interim report
------
Beijing Enlight Media Co., Ltd. (300251.SZ) expects 277 percent to 302 percent growth in its interim report, primarily due to sharp increase in income from film. Jinzhou Cihang Group Co., Ltd. (000587.SZ) expects growth of six times in its interim report, primarily due to the combination of Fenghui Leasing in its financial statement and price hike of gold. Hunan Gold Corporation Limited (002155.SZ) expects 150 percent to 200 percent growth in its interim report, primarily due to price hike of gold. Myhome Real Estate Development Group Co., ltd. (000667.SZ) upwardly revises its growth from 3 times to 6 times, primarily due to significant increase in clearing income of residential building. Bode Energy Equipment Co., Ltd. (300023.SZ) expects 4 times growth in its interim report, primarily due to combination of Qinghui Leasing in its financial statement.
Tonghua Golden-horse Pharmaceutical Industry Co., ltd. (000766.SZ) expects 9 to 10 times growth in its interim report, primarily due to combination of Shengtai Biology in its financial statement. Xinjiang Tianrun Dairy Co., Ltd. (600419.SH) expects 155 percent growth in its interim report, primarily due to the growth of sales. Wangsu Science ＆ Technology Co., ltd. (300017.SZ) expects 60 percent to 90 percent growth in its interim report, primarily due to continuously rapid growth of its business. Xingyuan Environment Technology Co., Ltd. (300266.SZ) expects 2 times growth in its interim report, primarily due to combination of Zhongyi Ecology in its financial statement.
○ Xinchao Energy to resume trading after proposed high share conversion and dividend
------
Shandong Xinchao Energy Corporation Limited (600777.SH) proposes 28-for-10 conversion of capital surplus into shares in its interim report. The company has carefully reviewed and answered Shanghai Stock Exchange's enquiries, and will resume trading from July 14.
[Trading Trends]
○ Digital China Group bought through five institutional seats
------
The trading volume ranking list on July 13 shows that Digital China Group Co., ltd. (000034.SZ) was bought through five institutional seats with a total of 83,696,700 yuan, accounting for 16.6 percent of intraday turnover; another two institutional seats sold with 40,631,400 yuan.
Comment: the company's private placement plan has been approved at the general meeting of shareholders. Institutions believe that this private placement is marked by long locked-up period, low discount rate for issuing price, and high percentage of internal subscription. It has demonstrated management's confidence about future development. In addition, Yunke Service, which the company proposes to acquire, has reached agreements with global top IT service providers such as IBM, Microsoft and Cisco. The company has huge development potential as it has transferred to cloud computing.
[Trading Alarms]
○ Huafon Group to debut IPO on July 14
------
Huafon Group (002860.SZ) will debut its IPO with the issuing price of 6.2 yuan per share. The upper limit for subscription is 20,000 shares. The PE ratio is 23 times. The company is primarily engaged in key raw material electrolytic capacitor foils for aluminum electrolysis capacitor.
TOP
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