[Today's Guide]
○Executive meeting of State Council advances Internet plus logistics, platform construction to speed up
○White book about satellite navigation and LBS released, application of Beidou system sees faster promotion
○Roadmap for development of intelligent vehicles to release, listed companies actively make arrangement
○Noposion Agrochemicals to launch employee shareholding plan, restructuring proposals of Orient Landscape ＆ Ecology and Conant Optics approved
[SSN Focus]
○Executive meeting of State Council advances Internet plus logistics, platform construction to speed up
------
The executive meeting of the State Council held on July 20 made arrangement for advancing Internet plus logistics. It was proposed on the meeting to build an interconnected and sharing system for logistics information, build standard specification, speed up the construction of public information platform for comprehensive transportation and logistics trading, improve the intelligence level of storage and delivery, encourage the development of cold-chain logistics; advance the optimization of transport capacity, realize precise connection of vehicles, sales network, users and etc.; intensify policy support in land use and etc.
Comment: The logistics industry is an important but also weak part of modern service industry. The industry has gained frequent attention from top leaders since this year. As express delivery giants like YTO Express and STO Express get listed on the A-share market, investment in logistics information platform, intelligent sorting might step up. Companies like Jiangsu Xinning Modern Logistics Co., Ltd. (300013.SZ) building all-electric intelligent logistics platform, Zhejiang Transfar Co., Ltd. (002010.SZ) actively constructing intelligent road logistics platform and Shenzhen Huapengfei Modern Logistics Co., Ltd. (300350.SZ) which expands to general logistics information platform through acquisition attract attention of institutions.
◆The executive meeting of the State Council also approved the special plan for national technology innovation during the 13th five-year plan. The construction of innovation-driven country is supposed to lead and support upgraded development. It was proposed on the meeting that a new batch of key technology projects involved in areas like quantum communication, precise medicine and etc. will be initiated. Technology development in key industries like the seed industry, clean and highly-efficient utilization of coal, the fifth-generation of mobile communication, intelligent robotics and etc. will be intensified.
[SSN Selection]
○Chinese president Xi Jinping made important instructions to safe production and security protection during flood season, requiring active R＆D and application of advanced security and protection technologies.
○The National Development and Reform Commission (NDRC) printed and distributed the Plan for the Railway Network in the Middle and Long Run on July 20. It was proposed to increase the mileage of high-speed railway from 19,000 kilometers to 38,000 kilometers in ten years.
○The State-owned Assets Supervision and Administration Commission (SASAC) of Shanghai Municipal Government recently held the work meeting for the third quarter, stressing to initiate a new wave of state-owned capitals and enterprises reform by making breakthroughs in innovative capital operation.
○According to foreign media, the European Union plans to treat China as a market economy, but the condition is that it has the right to impose the US-style anti-dumping taxes.
○Fund companies being surveyed by SSN remarked that the asset management plans mentioned in Vanke's report to the regulators actually do not fall into the category of "channel" business.
TOP
[Industry Information]
○White book about satellite navigation and LBS released, application of Beidou system sees faster promotion
------
The GNSS and LBS Association of China (GLAC) on July 20 held its meeting of Standing Council. The 2015 White Book for the Development of China's Satellite Navigation and Location-Based Service (LBS) Industry was released and the progress of an action plan for the application of Beidou system was introduced. China is now working on the Regulations for Satellite Navigation and the work has been listed in the State Council's Work Plan for Legislation in 2016. The regulation will be the first administrative one in China's satellite navigation field and support market promotion.
Comment: As Beidou systems get connected and the accuracy of their navigation improves, application in downstream industries will see faster promotion. Data shows that over 30 percent of the smart phones sold in China in Q1 carry Beidou chips. As to listed companies, Beijing BDStar Navigation Co., Ltd. (002151.SZ) completed private placement at end June. The raised fund will be invested in Beidou chip and other projects. The national integrated circuit industrial fund is involved in the private placement and becomes the second largest shareholder. Hi-Target Navigation Tech Co., Ltd. (300177.SZ) has developed products related to Beidou high-precision satellite navigation. The core technology indicators of the products are close to national advanced ones.
TOP
○Roadmap for development of intelligent vehicles to release, listed companies actively make arrangement
------
SSN learns that the technology roadmap for the development of intelligent vehicles, formulated by the Ministry of Industry and Information Technology (MIIT), has been basically finished and will be released publicly in August. In addition, the standards and planning for intelligent vehicles are under intense preparations. Intelligent vehicles refer to the new-generation vehicles that carry devices like advanced sensors, integrate modern communication and network technologies, able to have intelligent information exchange and sharing between people, vehicle, road and etc. as well as have complicated environmental perception, intelligent decision-making, coordinated control and execution functions.
Comment: It is predicted in a research report of McKinsey ＆ Co that smart car will generate output with 200 billion-1.9 trillion U.S. dollars by 2025. At present, several listed companies have speed up deployment in this field. Zhejiang Asia-pacific Mechanical ＆ Electronic Co., Ltd. (002284.SZ) announced in February that it would conduct overall operation on intelligent vehicle network connection technology with Beijing Automotive Technology Center. Shenzhen Deren Electronic Co., Ltd. (002055.SZ) announced in April that it carry out strategic cooperation on advanced driver assistance system, auto driving and car network connection fields with Mobileye.
TOP
○China Smart Cities International Expo 2016 to kick off, industrial investment to exceed RMB1 trln
------
China Smart Cities International Expo 2016 co-hosted by the China Center for Urban Development, a public institution directly under the National Development and Reform Commission (NDRC), and China Intellect Industry Alliance is going to kick off in Beijing from July 29 to 31. Representatives participating in the conference will show "5D city" concept, namely, ensuring achievement in urban strategic positioning through internationally advanced technologies of urban construction, operation and management including BIM, GIS, Internet of Things and cloud computing.
Comment: Research report of Changjiang Securities show that the amount of investment in smart city in China has seen an annual average compound growth of 14.81 percent since 2010 and predicts that investment in building smart city will exceed 1 trillion yuan in next ten years. Institutions believe that Beijing E-Hualu Info Technology Co., Ltd. (300212.SZ) is expected to accelerate smart city construction through PPP mode and copy it throughout China quickly. Teamax Smart City Technology Corporation Limited (000662.SZ) is now under the stage of contracting smart city construction projects and is expected to embark on urban operation based on Internet of Things in the future.
TOP
[Announcement Interpretation]
○Noposion Agrochemicals to launch employee shareholding plan
------
Shenzhen Noposion Agrochemicals Co. Ltd. (002215.SZ) proposes to launch second-phase employee shareholding plan with upper limit of 269 million yuan. AVIC Trust is entrusted to manage this plan with a ceiling of 538 million shares. The announcement stated that the share price will be based on closing price on July 19. This employee shareholding plan is able to buy as many as 49 million shares at most, accounting for 5.3 percent of the company's total share capital.
○Restructuring proposals of Orient Landscape ＆ Ecology and Conant Optics approved
------
Restructuring proposal of Beijing Orient Landscape ＆ Ecology Co., Ltd. (002310.SZ) is approved by the China Securities Regulatory Commission (CSRC) unconditionally. Restructuring proposal of Shanghai Conant Optics Co., Ltd. (300061.SZ) is approved by the CSRC on condition.
○Dongfeng Printing to acquire Golden Sands Color Printing at RMB450 mln to add investment in cigarette pack printing business
------
Shantou Dongfeng Printing Co., Ltd. (601515.SH) intends to receive the transfer of 100 percent equity of Hunan Golden Sands Color Printing Co., Ltd. at 450 million yuan. The target company is one of the large professional printing companies, which was the first one to be devoted in medium and high-end color printing package in Hunan. Its net profit recorded 117.8 million yuan and 53.71 million yuan in 2014 and 2015 respectively. Dongfeng Printing points out that it will improve its overall market shares and competitiveness in cigarette pack printing.
○Steel Structure to invest in green building architecture through private placement
------
Hangxiao Steel Structure Co., Ltd. (600477.SH) plans to raise 700 million yuan by issuing 100 million shares through private placement to invest in demonstration project of green architecture with industrialized and assembled steel structure, phase-3 and phase-4 Wanjun metropolis project and construction project of Industrial Green Architecture Research Institute of Hangxiao Steel Structure.
[Financial Reports Express]
○Net profit of Greattown Holdings expected to surge
------
Net profit of Greattown Holdings Ltd. (600094.SH) is expected to rise by 140 percent according to its semiannual report due to increase in areas of real estate projects which can be settled. Net profit of Zhejiang China Commodities City Group Co., Ltd. (600415.SH) is predicted to grow by 150-180 percent in its semiannual report owing to increasing sales profit of real estate. Thanks to gain in incomes from engineering business, net profit of Jiangsu Jiangnan Water Co., Ltd. is estimated to surge by 50-70 percent according to its semiannual report.
[Trading Trends]
○Chinadive Watersports to launch IPO on July 21
------
Chinadive Watersports Inc. (300526.SZ) is going to launch IPO at a price of 10.5 yuan per share with an upper limit of 7,000 shares for each account. The PE ratio is 23 times. The company is engaged in diving suit and fishing and hunting suit.
TOP
○Executive meeting of State Council advances Internet plus logistics, platform construction to speed up
○White book about satellite navigation and LBS released, application of Beidou system sees faster promotion
○Roadmap for development of intelligent vehicles to release, listed companies actively make arrangement
○Noposion Agrochemicals to launch employee shareholding plan, restructuring proposals of Orient Landscape ＆ Ecology and Conant Optics approved
[SSN Focus]
○Executive meeting of State Council advances Internet plus logistics, platform construction to speed up
------
The executive meeting of the State Council held on July 20 made arrangement for advancing Internet plus logistics. It was proposed on the meeting to build an interconnected and sharing system for logistics information, build standard specification, speed up the construction of public information platform for comprehensive transportation and logistics trading, improve the intelligence level of storage and delivery, encourage the development of cold-chain logistics; advance the optimization of transport capacity, realize precise connection of vehicles, sales network, users and etc.; intensify policy support in land use and etc.
Comment: The logistics industry is an important but also weak part of modern service industry. The industry has gained frequent attention from top leaders since this year. As express delivery giants like YTO Express and STO Express get listed on the A-share market, investment in logistics information platform, intelligent sorting might step up. Companies like Jiangsu Xinning Modern Logistics Co., Ltd. (300013.SZ) building all-electric intelligent logistics platform, Zhejiang Transfar Co., Ltd. (002010.SZ) actively constructing intelligent road logistics platform and Shenzhen Huapengfei Modern Logistics Co., Ltd. (300350.SZ) which expands to general logistics information platform through acquisition attract attention of institutions.
◆The executive meeting of the State Council also approved the special plan for national technology innovation during the 13th five-year plan. The construction of innovation-driven country is supposed to lead and support upgraded development. It was proposed on the meeting that a new batch of key technology projects involved in areas like quantum communication, precise medicine and etc. will be initiated. Technology development in key industries like the seed industry, clean and highly-efficient utilization of coal, the fifth-generation of mobile communication, intelligent robotics and etc. will be intensified.
[SSN Selection]
○Chinese president Xi Jinping made important instructions to safe production and security protection during flood season, requiring active R＆D and application of advanced security and protection technologies.
○The National Development and Reform Commission (NDRC) printed and distributed the Plan for the Railway Network in the Middle and Long Run on July 20. It was proposed to increase the mileage of high-speed railway from 19,000 kilometers to 38,000 kilometers in ten years.
○The State-owned Assets Supervision and Administration Commission (SASAC) of Shanghai Municipal Government recently held the work meeting for the third quarter, stressing to initiate a new wave of state-owned capitals and enterprises reform by making breakthroughs in innovative capital operation.
○According to foreign media, the European Union plans to treat China as a market economy, but the condition is that it has the right to impose the US-style anti-dumping taxes.
○Fund companies being surveyed by SSN remarked that the asset management plans mentioned in Vanke's report to the regulators actually do not fall into the category of "channel" business.
TOP
[Industry Information]
○White book about satellite navigation and LBS released, application of Beidou system sees faster promotion
------
The GNSS and LBS Association of China (GLAC) on July 20 held its meeting of Standing Council. The 2015 White Book for the Development of China's Satellite Navigation and Location-Based Service (LBS) Industry was released and the progress of an action plan for the application of Beidou system was introduced. China is now working on the Regulations for Satellite Navigation and the work has been listed in the State Council's Work Plan for Legislation in 2016. The regulation will be the first administrative one in China's satellite navigation field and support market promotion.
Comment: As Beidou systems get connected and the accuracy of their navigation improves, application in downstream industries will see faster promotion. Data shows that over 30 percent of the smart phones sold in China in Q1 carry Beidou chips. As to listed companies, Beijing BDStar Navigation Co., Ltd. (002151.SZ) completed private placement at end June. The raised fund will be invested in Beidou chip and other projects. The national integrated circuit industrial fund is involved in the private placement and becomes the second largest shareholder. Hi-Target Navigation Tech Co., Ltd. (300177.SZ) has developed products related to Beidou high-precision satellite navigation. The core technology indicators of the products are close to national advanced ones.
TOP
○Roadmap for development of intelligent vehicles to release, listed companies actively make arrangement
------
SSN learns that the technology roadmap for the development of intelligent vehicles, formulated by the Ministry of Industry and Information Technology (MIIT), has been basically finished and will be released publicly in August. In addition, the standards and planning for intelligent vehicles are under intense preparations. Intelligent vehicles refer to the new-generation vehicles that carry devices like advanced sensors, integrate modern communication and network technologies, able to have intelligent information exchange and sharing between people, vehicle, road and etc. as well as have complicated environmental perception, intelligent decision-making, coordinated control and execution functions.
Comment: It is predicted in a research report of McKinsey ＆ Co that smart car will generate output with 200 billion-1.9 trillion U.S. dollars by 2025. At present, several listed companies have speed up deployment in this field. Zhejiang Asia-pacific Mechanical ＆ Electronic Co., Ltd. (002284.SZ) announced in February that it would conduct overall operation on intelligent vehicle network connection technology with Beijing Automotive Technology Center. Shenzhen Deren Electronic Co., Ltd. (002055.SZ) announced in April that it carry out strategic cooperation on advanced driver assistance system, auto driving and car network connection fields with Mobileye.
TOP
○China Smart Cities International Expo 2016 to kick off, industrial investment to exceed RMB1 trln
------
China Smart Cities International Expo 2016 co-hosted by the China Center for Urban Development, a public institution directly under the National Development and Reform Commission (NDRC), and China Intellect Industry Alliance is going to kick off in Beijing from July 29 to 31. Representatives participating in the conference will show "5D city" concept, namely, ensuring achievement in urban strategic positioning through internationally advanced technologies of urban construction, operation and management including BIM, GIS, Internet of Things and cloud computing.
Comment: Research report of Changjiang Securities show that the amount of investment in smart city in China has seen an annual average compound growth of 14.81 percent since 2010 and predicts that investment in building smart city will exceed 1 trillion yuan in next ten years. Institutions believe that Beijing E-Hualu Info Technology Co., Ltd. (300212.SZ) is expected to accelerate smart city construction through PPP mode and copy it throughout China quickly. Teamax Smart City Technology Corporation Limited (000662.SZ) is now under the stage of contracting smart city construction projects and is expected to embark on urban operation based on Internet of Things in the future.
TOP
[Announcement Interpretation]
○Noposion Agrochemicals to launch employee shareholding plan
------
Shenzhen Noposion Agrochemicals Co. Ltd. (002215.SZ) proposes to launch second-phase employee shareholding plan with upper limit of 269 million yuan. AVIC Trust is entrusted to manage this plan with a ceiling of 538 million shares. The announcement stated that the share price will be based on closing price on July 19. This employee shareholding plan is able to buy as many as 49 million shares at most, accounting for 5.3 percent of the company's total share capital.
○Restructuring proposals of Orient Landscape ＆ Ecology and Conant Optics approved
------
Restructuring proposal of Beijing Orient Landscape ＆ Ecology Co., Ltd. (002310.SZ) is approved by the China Securities Regulatory Commission (CSRC) unconditionally. Restructuring proposal of Shanghai Conant Optics Co., Ltd. (300061.SZ) is approved by the CSRC on condition.
○Dongfeng Printing to acquire Golden Sands Color Printing at RMB450 mln to add investment in cigarette pack printing business
------
Shantou Dongfeng Printing Co., Ltd. (601515.SH) intends to receive the transfer of 100 percent equity of Hunan Golden Sands Color Printing Co., Ltd. at 450 million yuan. The target company is one of the large professional printing companies, which was the first one to be devoted in medium and high-end color printing package in Hunan. Its net profit recorded 117.8 million yuan and 53.71 million yuan in 2014 and 2015 respectively. Dongfeng Printing points out that it will improve its overall market shares and competitiveness in cigarette pack printing.
○Steel Structure to invest in green building architecture through private placement
------
Hangxiao Steel Structure Co., Ltd. (600477.SH) plans to raise 700 million yuan by issuing 100 million shares through private placement to invest in demonstration project of green architecture with industrialized and assembled steel structure, phase-3 and phase-4 Wanjun metropolis project and construction project of Industrial Green Architecture Research Institute of Hangxiao Steel Structure.
[Financial Reports Express]
○Net profit of Greattown Holdings expected to surge
------
Net profit of Greattown Holdings Ltd. (600094.SH) is expected to rise by 140 percent according to its semiannual report due to increase in areas of real estate projects which can be settled. Net profit of Zhejiang China Commodities City Group Co., Ltd. (600415.SH) is predicted to grow by 150-180 percent in its semiannual report owing to increasing sales profit of real estate. Thanks to gain in incomes from engineering business, net profit of Jiangsu Jiangnan Water Co., Ltd. is estimated to surge by 50-70 percent according to its semiannual report.
[Trading Trends]
○Chinadive Watersports to launch IPO on July 21
------
Chinadive Watersports Inc. (300526.SZ) is going to launch IPO at a price of 10.5 yuan per share with an upper limit of 7,000 shares for each account. The PE ratio is 23 times. The company is engaged in diving suit and fishing and hunting suit.
TOP
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