[Today's Guide]
○Various environmental protection policies being formulated, this industry frequently gains support
○GPU magnate frequently sets new highs, demands increase for wider prospect
○DongRi Company to acquire cold chain assets of agricultural trade, Xi'an Tourism to acquire advertisement asset
○Infore Environment Technology to invest in household garbage incineration based power generation projects, net profit of Linglong Tyre expected to rise
[SSN Focus]
○Various environmental protection policies being formulated, this industry frequently gains support
------
2016 Environmental Protection Industrial Summit Forum was held on July 23, and the information showed that various environmental protection policies are being formulated now: the National People's Congress (NPC) will discuss a law of environmental protection tax in August and October, and the law for land pollution prevention and treatment has stepped into a stage of legislation under the NPC; the National Development and Reform Commission are leading in three action plans including national energy saving, water saving and circulatory development; Ministry of Environmental Protection is formulating a inspection scheme of environmental protection, investigating the land pollution, and it will also plan detailed implementation scheme in next step.
Comment: Insiders believed that although investment in environmental protection now grows very rapidly, nearly 70 percent demands to this respect have not been fulfilled; pushed by various policies, the overall social investment in this field is likely to reach 17 trillion yuan during the period of the "13th Five-Year Plan". According to performance forecasts of the listed companies, Yonker Environmental Protection Co., Ltd. (300187.SZ), Beijing GeoEnviron Engineering ＆ Technology, Inc. (603588.SH) and Xiamen Savings Environmental Co., Ltd. (300056.SZ) all predict multiplied growth for the first half year. Recently, Yonker Environmental Protection and GeoEnviron Engineering ＆ Technology have won many land recovery orders; Savings Environmental once indicated in May that its merged Xiamen Potent Machinery Industry Co., Ltd. has orders of over 1 billion yuan in hand.
[SSN Selection]
○China Securities Regulatory Commission approved the IPOs of 14 enterprises, such as Bank of Guiyang and Jiangyin Rural Commercial Bank, and the fund going to be raised will not exceed 12 billion yuan possibly.
○China Securities Regulatory Commission (CSRC) condemned the shareholders and management of China Vanke Co., Ltd. (000002.SZ). Shenzhen CSRC and Shenzhen Stock Exchange have started investigation on the reporting event.
○Shanghai Stock Exchange issued three regulatory cases, involving two abnormal trading behaviors: false declaration for collective auction and up or down trend at the closing.
○State-owned Assets Supervision and Administration Commission (SASAC) of the State Council announced the establishment and operation of a central state-owned company named as Coal Asset Management Platform Co., Ltd. Sdic Xinji Energy Co., Ltd. (601918.SH) announced that shareholdings of the substantial shareholder will be transferred to other enterprises under the SASAC.
○Miao Wei, Minister of Industry and Information Technology, on July 24 indicated that 5.2 billion yuan from the central government is expected to allocate for specialized intelligent manufacturing, and this figure is 1.5 times of last year.
○Jia Kang, head of China Academy of New Supply-side Economics, indicated on July 22 that the scheme of individual income tax deducting the housing loan will be popularized nationwide, and legalization and implementation of real estate tax should be speeded up.
TOP
[Industrial Information]
○GPU magnate frequently sets new highs, demands increase for wider prospect
------
NVIDIA Corporation (NVDA.NASDAQ) with its GPU market share ranking high had its stock price rise by 2.72 percent on July 22, and the stock price set a new historic high again after rehabilitation. Another magnate in this industry AMD also gained 12 percent growth in its stock price, a new high since 2013. Benefiting from rapid development of VR, artificial intelligence and automatic drive industries, the demands for GPU providing computing ability become much more.
Comment: GPU having advantages in rapid response speed and low energy consumption can deal with massive detailed information, and analyze massive data under high speed; its application gains huge space in AR/VR games, deep learning and other fields, securities companies' research report pointed out. Among the listed companies, Changsha Jingjia Microelectronics Co., Ltd. (300474.SZ) is one of the first movers to realize the localization of military GPU; Nantong Fujitsu Microelectronics Co., Ltd. (002156.SZ) steps into GPU sealing ＆ packing test field through acquiring 85 percent equities respectively of AMD's two sealing ＆ packing test plants in Suzhou and Bincheng cities.
TOP
[Announcement Interpretation]
○DongRi Company to acquire cold chain assets of agricultural trade
------
ZheJiang DongRi Company Limited (600113.SH) proposes to pay 1,192 million yuan through private placement and cash to acquire first-phased project of modern agricultural trade park and cold chain logistics center held by Wenzhou Vegetables Group. The listed company also plans to raise 800 million yuan as supporting fund by private placement. The said private placement price and bottom prices are all 10.39 yuan per share. And its stock price before trading suspension was 12.04 yuan.
○Xi'an Tourism to acquire advertisement asset with RMB1.1 bln
------
Xi'an Tourism Co., Ltd. (000610.SZ) proposes to pay 1,104 million yuan by private placement and cash to acquire the 100 percent equities of Xi'an Three's Media ＆ Network Technology Co., Ltd. (Three's Company), which is listed on the New Third Board. 356 million yuan will be paid in cash, and the rest 1,067 million yuan will be paid by private placement. Meanwhile, the listed company also plans to raise the supporting fund of 580 million yuan by private placement with the price of 11.04 yuan per share to its controlling shareholders, including Xi'an Tourism Group.
Three's Company is mainly engaged in school-related media businesses, public activities, marketing services, and digital integration ＆ marketing business. It promises that its net profit after deduction will not be less than 80, 100 and 125 million yuan from 2016 to 2018.
TOP
○Infore Environment Technology to raise fund by private placement for household garbage incineration based power generation projects
------
Infore Environment Technology Group Co., Ltd. (000967.SZ) proposes to raise 950 million yuan through private placement with 12.78 yuan per share as the bottom price. The raised fund will be invested in power generation projects based on household garbage incineration in three counties, such as Shou county, Funan and Lianjiang; it will also be used for upgrading of national environment monitoring center, constructing new projects, and supplementing liquidity. He Jianfeng, actual controller of the listed company, plans to subscribe the shares of private placement with 50 to 150 million yuan.
After the three garbage incineration power plants achieve designed capacity, the company is expected to gain a total of about 53 million yuan of net profit per year. After the upgrade of national operation center of environmental monitoring and new projects achieve designed capacity, the company is expected to gain 59.32 million yuan of net profit annually.
○Genzhi Investment Center gains 5 pct. stake of Quantum Hi-Tech (China) Biological through transfer
------
Quantum Hi-Tech Group Limited, shareholder of Quantum Hi-Tech (China) Biological Co., Ltd. (300149.SZ), will transfer 21.105 million shares of Quantum Hi-Tech (China) Biological to Shanghai Genzhi Investment Center (Limited Partnership) at a price of 16 yuan per share. Hence, Genzhi Investment Center will hold 5 percent stake in the listed company, while Quantum Hi-Tech Group will not hold any stake in the company any more. Actual controller of Genzhi Investment Center is Dai Shoupeng, who once developed the first creative theme park based on chocolate and desserts, while Quantum Hi-Tech (China) Biological is mainly engaged in fructo-oligosaccharide. As to this participation, Genzhi Investment Center claims that it is rosy about the future prospect of Quantum Hi-Tech (China) Biological.
In this March, Quantum Hi-Tech Group also announced that it transferred 59.094 million shares and 21.4971 million shares to Hangzhou Cihuang Liangjia Investment Management Partnership and Zeng Xianjing (actual controller of the listed company) at a price of 12.51 yuan per share. The latest share price of Quantum Hi-Tech (China) Biological is 18.39 yuan per share.
○Proposal on restructuring of Shanghai Yaoji Playing Card Co., Ltd. was approved by China Securities Regulatory Commission unconditionally.
[Financial Reports Express]
○Net profit of Linglong Tyre expected to rise
------
Due to increase in business revenue, net profit of Shandong Linglong Tyre Co., Ltd. (601966.SH) is expected to grow by 1200-1400 times and net profit after extraordinary gains and losses is predicted to climb by 90-115 percent according to its semiannual report. The company's performance shrank last year due to disasters. Net profit of Chongqing Zaisheng Technology Co., Ltd. (603601.SH) is expected to rise by 103-113 percent contributed by strong market demand.
Thanks to recovery in PV industry, net profit of Beijing Jingyuntong Technology Co., Ltd. (601908.SH) is expected to surge by 70-90 percent according to its semiannual report. Net profit of Shanghai Aerospace Automobile Electromechanical Co., Ltd. (600151.SH) is expected to reach 96 million yuan owing to increasing shipment of PV modules.
[Trading Trends]
○Cosunter Pharmaceutical bought through 5 institutional seats
------
The trading volume ranking list on July 22 shows that Fujian Cosunter Pharmaceutical Co., Ltd. (300436.SZ) was bought through five institutional seats with a total of 243 million yuan, accounting for 34.9 percent of its intraday turnover.
Comment: Institutions believe that the company is the only enterprises receiving approval on three kinds of first-class anti-HBV drugs including Entecavir, adefovir dipivoxil and lamivudine. With the excellent product performance and strong sales teams, its market share in anti-HBV drugs in China rapidly ranks to No. fourth. The smooth progress in R＆D of major products will drive the company's business to boom.
[Trading Alarms]
○China Harzone Industry to launch IPO on July 25
------
China Harzone Industry Co., Ltd. is going to launch IPO at a price of 6.64 yuan per share with an upper subscription limit of 34,500 shares. The PE ratio is 23 times. The company is principally engaged in emergency transportation engineering equipment.
[Weekly Review]
○Summer vacation in stock market
------
Summer vacation has arrived in many regions across the country just after the solar term Great Heat has just passed with the sinister sun, dull cicada singing and sleepy doorkeeper. This kind of taedium vitae seems to affect stock market, which sees few significant news and policies and decreasing companies that surge to the daily limit of ten percent. Ningbo Gqy Video ＆ Telecom Joint-stock Co., Ltd. (300076.SZ) just resumed trading not long ago, Dongxu Optoelectronic Technology Co., Ltd. (000413.SZ), which saw remarkable hike, beings to suspend trading for inspection.
It is said that change in four seasons is like four steps in the composition of an essay. It begins with spring, followed by summer, changes like autumn and closes with winter. The long summer days are too hot to tolerate, but it is just the most important season for grasses and trees to grow. In terms of stock market, we should not shed tears over the changes of seasons and think that every day is an important turn of going bottom fishing.
Several sectors leading the growth in the market last week are those hotspots which have kept heating for a few of months. As for quantum communication, the second half of this year will see such significant progresses as launch of the first quantum communication test satellite and completion of the first quantum communication commercial line, which has been repeatedly reported by SSN for many times since early this year. Qihoo 360 Technology Co., Ltd. finally finished privatization one week ago after various difficulties. Share price of CITIC Guoan Information Industry Co., Ltd. (000839.SZ) shows the brightest performance among several companies as it repeatedly announced progress on its own.
TOP
○Various environmental protection policies being formulated, this industry frequently gains support
○GPU magnate frequently sets new highs, demands increase for wider prospect
○DongRi Company to acquire cold chain assets of agricultural trade, Xi'an Tourism to acquire advertisement asset
○Infore Environment Technology to invest in household garbage incineration based power generation projects, net profit of Linglong Tyre expected to rise
[SSN Focus]
○Various environmental protection policies being formulated, this industry frequently gains support
------
2016 Environmental Protection Industrial Summit Forum was held on July 23, and the information showed that various environmental protection policies are being formulated now: the National People's Congress (NPC) will discuss a law of environmental protection tax in August and October, and the law for land pollution prevention and treatment has stepped into a stage of legislation under the NPC; the National Development and Reform Commission are leading in three action plans including national energy saving, water saving and circulatory development; Ministry of Environmental Protection is formulating a inspection scheme of environmental protection, investigating the land pollution, and it will also plan detailed implementation scheme in next step.
Comment: Insiders believed that although investment in environmental protection now grows very rapidly, nearly 70 percent demands to this respect have not been fulfilled; pushed by various policies, the overall social investment in this field is likely to reach 17 trillion yuan during the period of the "13th Five-Year Plan". According to performance forecasts of the listed companies, Yonker Environmental Protection Co., Ltd. (300187.SZ), Beijing GeoEnviron Engineering ＆ Technology, Inc. (603588.SH) and Xiamen Savings Environmental Co., Ltd. (300056.SZ) all predict multiplied growth for the first half year. Recently, Yonker Environmental Protection and GeoEnviron Engineering ＆ Technology have won many land recovery orders; Savings Environmental once indicated in May that its merged Xiamen Potent Machinery Industry Co., Ltd. has orders of over 1 billion yuan in hand.
[SSN Selection]
○China Securities Regulatory Commission approved the IPOs of 14 enterprises, such as Bank of Guiyang and Jiangyin Rural Commercial Bank, and the fund going to be raised will not exceed 12 billion yuan possibly.
○China Securities Regulatory Commission (CSRC) condemned the shareholders and management of China Vanke Co., Ltd. (000002.SZ). Shenzhen CSRC and Shenzhen Stock Exchange have started investigation on the reporting event.
○Shanghai Stock Exchange issued three regulatory cases, involving two abnormal trading behaviors: false declaration for collective auction and up or down trend at the closing.
○State-owned Assets Supervision and Administration Commission (SASAC) of the State Council announced the establishment and operation of a central state-owned company named as Coal Asset Management Platform Co., Ltd. Sdic Xinji Energy Co., Ltd. (601918.SH) announced that shareholdings of the substantial shareholder will be transferred to other enterprises under the SASAC.
○Miao Wei, Minister of Industry and Information Technology, on July 24 indicated that 5.2 billion yuan from the central government is expected to allocate for specialized intelligent manufacturing, and this figure is 1.5 times of last year.
○Jia Kang, head of China Academy of New Supply-side Economics, indicated on July 22 that the scheme of individual income tax deducting the housing loan will be popularized nationwide, and legalization and implementation of real estate tax should be speeded up.
TOP
[Industrial Information]
○GPU magnate frequently sets new highs, demands increase for wider prospect
------
NVIDIA Corporation (NVDA.NASDAQ) with its GPU market share ranking high had its stock price rise by 2.72 percent on July 22, and the stock price set a new historic high again after rehabilitation. Another magnate in this industry AMD also gained 12 percent growth in its stock price, a new high since 2013. Benefiting from rapid development of VR, artificial intelligence and automatic drive industries, the demands for GPU providing computing ability become much more.
Comment: GPU having advantages in rapid response speed and low energy consumption can deal with massive detailed information, and analyze massive data under high speed; its application gains huge space in AR/VR games, deep learning and other fields, securities companies' research report pointed out. Among the listed companies, Changsha Jingjia Microelectronics Co., Ltd. (300474.SZ) is one of the first movers to realize the localization of military GPU; Nantong Fujitsu Microelectronics Co., Ltd. (002156.SZ) steps into GPU sealing ＆ packing test field through acquiring 85 percent equities respectively of AMD's two sealing ＆ packing test plants in Suzhou and Bincheng cities.
TOP
[Announcement Interpretation]
○DongRi Company to acquire cold chain assets of agricultural trade
------
ZheJiang DongRi Company Limited (600113.SH) proposes to pay 1,192 million yuan through private placement and cash to acquire first-phased project of modern agricultural trade park and cold chain logistics center held by Wenzhou Vegetables Group. The listed company also plans to raise 800 million yuan as supporting fund by private placement. The said private placement price and bottom prices are all 10.39 yuan per share. And its stock price before trading suspension was 12.04 yuan.
○Xi'an Tourism to acquire advertisement asset with RMB1.1 bln
------
Xi'an Tourism Co., Ltd. (000610.SZ) proposes to pay 1,104 million yuan by private placement and cash to acquire the 100 percent equities of Xi'an Three's Media ＆ Network Technology Co., Ltd. (Three's Company), which is listed on the New Third Board. 356 million yuan will be paid in cash, and the rest 1,067 million yuan will be paid by private placement. Meanwhile, the listed company also plans to raise the supporting fund of 580 million yuan by private placement with the price of 11.04 yuan per share to its controlling shareholders, including Xi'an Tourism Group.
Three's Company is mainly engaged in school-related media businesses, public activities, marketing services, and digital integration ＆ marketing business. It promises that its net profit after deduction will not be less than 80, 100 and 125 million yuan from 2016 to 2018.
TOP
○Infore Environment Technology to raise fund by private placement for household garbage incineration based power generation projects
------
Infore Environment Technology Group Co., Ltd. (000967.SZ) proposes to raise 950 million yuan through private placement with 12.78 yuan per share as the bottom price. The raised fund will be invested in power generation projects based on household garbage incineration in three counties, such as Shou county, Funan and Lianjiang; it will also be used for upgrading of national environment monitoring center, constructing new projects, and supplementing liquidity. He Jianfeng, actual controller of the listed company, plans to subscribe the shares of private placement with 50 to 150 million yuan.
After the three garbage incineration power plants achieve designed capacity, the company is expected to gain a total of about 53 million yuan of net profit per year. After the upgrade of national operation center of environmental monitoring and new projects achieve designed capacity, the company is expected to gain 59.32 million yuan of net profit annually.
○Genzhi Investment Center gains 5 pct. stake of Quantum Hi-Tech (China) Biological through transfer
------
Quantum Hi-Tech Group Limited, shareholder of Quantum Hi-Tech (China) Biological Co., Ltd. (300149.SZ), will transfer 21.105 million shares of Quantum Hi-Tech (China) Biological to Shanghai Genzhi Investment Center (Limited Partnership) at a price of 16 yuan per share. Hence, Genzhi Investment Center will hold 5 percent stake in the listed company, while Quantum Hi-Tech Group will not hold any stake in the company any more. Actual controller of Genzhi Investment Center is Dai Shoupeng, who once developed the first creative theme park based on chocolate and desserts, while Quantum Hi-Tech (China) Biological is mainly engaged in fructo-oligosaccharide. As to this participation, Genzhi Investment Center claims that it is rosy about the future prospect of Quantum Hi-Tech (China) Biological.
In this March, Quantum Hi-Tech Group also announced that it transferred 59.094 million shares and 21.4971 million shares to Hangzhou Cihuang Liangjia Investment Management Partnership and Zeng Xianjing (actual controller of the listed company) at a price of 12.51 yuan per share. The latest share price of Quantum Hi-Tech (China) Biological is 18.39 yuan per share.
○Proposal on restructuring of Shanghai Yaoji Playing Card Co., Ltd. was approved by China Securities Regulatory Commission unconditionally.
[Financial Reports Express]
○Net profit of Linglong Tyre expected to rise
------
Due to increase in business revenue, net profit of Shandong Linglong Tyre Co., Ltd. (601966.SH) is expected to grow by 1200-1400 times and net profit after extraordinary gains and losses is predicted to climb by 90-115 percent according to its semiannual report. The company's performance shrank last year due to disasters. Net profit of Chongqing Zaisheng Technology Co., Ltd. (603601.SH) is expected to rise by 103-113 percent contributed by strong market demand.
Thanks to recovery in PV industry, net profit of Beijing Jingyuntong Technology Co., Ltd. (601908.SH) is expected to surge by 70-90 percent according to its semiannual report. Net profit of Shanghai Aerospace Automobile Electromechanical Co., Ltd. (600151.SH) is expected to reach 96 million yuan owing to increasing shipment of PV modules.
[Trading Trends]
○Cosunter Pharmaceutical bought through 5 institutional seats
------
The trading volume ranking list on July 22 shows that Fujian Cosunter Pharmaceutical Co., Ltd. (300436.SZ) was bought through five institutional seats with a total of 243 million yuan, accounting for 34.9 percent of its intraday turnover.
Comment: Institutions believe that the company is the only enterprises receiving approval on three kinds of first-class anti-HBV drugs including Entecavir, adefovir dipivoxil and lamivudine. With the excellent product performance and strong sales teams, its market share in anti-HBV drugs in China rapidly ranks to No. fourth. The smooth progress in R＆D of major products will drive the company's business to boom.
[Trading Alarms]
○China Harzone Industry to launch IPO on July 25
------
China Harzone Industry Co., Ltd. is going to launch IPO at a price of 6.64 yuan per share with an upper subscription limit of 34,500 shares. The PE ratio is 23 times. The company is principally engaged in emergency transportation engineering equipment.
[Weekly Review]
○Summer vacation in stock market
------
Summer vacation has arrived in many regions across the country just after the solar term Great Heat has just passed with the sinister sun, dull cicada singing and sleepy doorkeeper. This kind of taedium vitae seems to affect stock market, which sees few significant news and policies and decreasing companies that surge to the daily limit of ten percent. Ningbo Gqy Video ＆ Telecom Joint-stock Co., Ltd. (300076.SZ) just resumed trading not long ago, Dongxu Optoelectronic Technology Co., Ltd. (000413.SZ), which saw remarkable hike, beings to suspend trading for inspection.
It is said that change in four seasons is like four steps in the composition of an essay. It begins with spring, followed by summer, changes like autumn and closes with winter. The long summer days are too hot to tolerate, but it is just the most important season for grasses and trees to grow. In terms of stock market, we should not shed tears over the changes of seasons and think that every day is an important turn of going bottom fishing.
Several sectors leading the growth in the market last week are those hotspots which have kept heating for a few of months. As for quantum communication, the second half of this year will see such significant progresses as launch of the first quantum communication test satellite and completion of the first quantum communication commercial line, which has been repeatedly reported by SSN for many times since early this year. Qihoo 360 Technology Co., Ltd. finally finished privatization one week ago after various difficulties. Share price of CITIC Guoan Information Industry Co., Ltd. (000839.SZ) shows the brightest performance among several companies as it repeatedly announced progress on its own.
TOP
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