[Today's Guide]
○ Medium- and long-term plans on health development under preparation, medical treatment and services to improve
○ Daily power generation hit new high, supply and demand drive coal price higher
○ Tianhai Investment to acquire IMI, Yunnan Coal ＆ Energy to acquire heavy equipment assets
○ Taiji Industry expects four times' growth in interim report, Shanghai Lingang Holdings bought through three institutional seats
[SSN Focus]
○ Medium- and long-term plans on health development under preparation, medical treatment and services to improve
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Xinhua News Agency reported that the Chinese government attaches great importance to maintaining the health of the people and has made significant progresses in deepening the reform and improving the medical insurance system for all people, improving the medical and health services system, establishing the basic pharmaceutical system and promoting the basic medical treatment and public health services, indicated Chinese President Xi Jinping during a meeting with World Health Organization Director General Margaret Chan on July 25. China has made decisions to promote the establishment a healthy China and is preparing the medium- and long-term plans on health development. It is an integral part of the two centennial targets of China to making the Chinese people access to higher medical and health services.
Comment: Institutes believe that with the aging of the population and the improvement of the medical insurance and revenues, the demand in the domestic medical treatment services industry has been increasing. However, the overall medical resources in China are insufficient and the quality is not high. The establishment of relevant medical resources and the IT application in medical treatment and the collection of medical data will enjoy huge investment opportunities in the following five years focusing on hierarchical diagnosis. Wonders Information Co., Ltd. (300168.SZ) is fully developing in the medical and health industry. Winning Health Technology Group Co., Ltd. (300253.SZ) is developing various Internet-based medical treatment businesses and its cloud businesses are favored by institutes.
[SSN Selection]
○ A capacity of over 13 million tons in the steel industry was cut in the first half and it is confident in completing the annual task of 45 million tons, indicated Feng Fei, vice minister of the Ministry of Industry and Information Technology (MIIT), on July 25.
○ 20 nuclear power units are under construction in the Chinese Mainland, ranking first in the world, indicated the president of the Chinese Nuclear Society.
○ The National Development and Reform Commission (NDRC) releases the plan on the development of the pharmaceutical industry, proposing to strengthen the innovation in brand-name drugs, first generic drugs, traditional Chinese medicines and high-end medical devices.
○ Shanghai Stock Connect recorded net capital inflow for 11 consecutive trading days. CITIC Securities Company Limited (06030.HK; 600030.SH), Anhui Conch Cement Company Limited (00914.HK; 600585.SH) and Ping An Insurance (Group) Company of China, Ltd. (02318.HK; 601318.SH) saw higher net buys.
○ China Calxon Group Co., Ltd. (000918.SZ) announced that Evergrande Real Estate Group Limited (03333.HK) has completed the full offer obligations to the company and became its shareholder.
TOP
[Industry Information]
○ Daily power generation hit new high, supply and demand drive coal price higher
------
The National Development and Reform Commission (NDRC) disclosed on its website on July 25 that due to the high-temperature weather across China, the daily power generation has been surging in recent days. It hit a new high on July 22 and 23. In addition, Xinhua News Agency reported that the State Grid Shandong Electric Power Company proposes to restrict the power supply to industries with high power consumption.
Comment: The increasing power consumption is driving more thermal power plants under operation and increasing the demand for coals. In terms of the supply, due to the output reduction for 276 working days, the coal inventory in major ports around the Bohai Sea has fallen to the lowest level since 2010. SSN learnt that Shenhua Group is going to unveil the price of coal transported through waterway in August. Price hike is highly expected. Zhongtai Securities are rosy about Shanxi Xishan Coal and Electricity Power Co., Ltd. (000983.SZ), Yanzhou Coal Mining Company Limited (01171.HK; 600188.SH) and Shaanxi Coal Industry Company Limited (601225.SH) as they are active in the SOEs reform and the price rise will have great effects on their performances.
TOP
[Announcement Interpretation]
○ Tianhai Investment to acquire IMI to develop IT supply
------
Tianjin Tianhai Investment Co., Ltd. (600751.SH) proposes to acquire 100 percent equities of IMI with 6,009 million U.S. dollars. The company will contribute 8.7 billion yuan with its own capitals while Guohua Life, the second biggest shareholder of the company with a shareholding of 14.45 percent, will invest 4 billion yuan. The remaining part will be paid with bank borrowings.
The IMI is a provider of the distribution of global IT products and technical solutions as well as other services. It recorded a net profit of 311 million U.S. dollars, 267 million U.S. dollars and 215 U.S. dollars from 2013 to 2015. Tianhai Investment indicated that it will develop comprehensive services in IT supply from the single shipment business after the transaction.?
○ Yunnan Coal ＆ Energy proposes to acquire heavy equipment assets
------
Yunnan Coal ＆ Energy Co., Ltd. (600792.SH) proposes to exchange the equivalent part of the entire equity of Yunnan KISC Heavy Equipment Manufacturing Group Co., Ltd. held by its controlling shareholder with the entire equity of Kunming Coking Gas Plant held by itself. The predicted value of the assets to be disposed of and bought are 606 million yuan and 419 million yuan respectively. The difference is satisfied by Kunming Iron＆ Steel Holding Co., Ltd. to the company in cash.
Yunnan KISC Heavy Equipment Manufacturing Group is primarily engaged in the design and sales of machinery and complete equipment; manufacturing, sales and maintenance of boiler, pressure vessel special equipment and electronic car weigher. In 2015, the company realized operation revenue of 548 million yuan, with net profits of - 111 million yuan. Yunnan Coal ＆ Energy indicated that the asset replacement will improve the company's financial condition, and strengthen the company's ongoing profitability.
○ Beijing IRTOUCH Systems proposes to buy Header Information Technology with RMB806 mln, increasing investment in education industry
------
Beijing IRTOUCH Systems Co., Ltd. (300282.SZ) proposes to buy the entire equity of Guangdong Header Information Technology Co., Ltd at the valuation of 806 million yuan, which will be raised by issuing shares at 29.5 yuan per share through private placement as well as cash payment. At the same time, the company proposes to raise supporting fund of 517 million yuan, the base date of private placement and price determination will be the first day of issuance.
Header Information Technology is a service provider primarily engaged in the provision of education informatization solution and education software to elementary and secondary schools, vocational schools and education management department in all levels. Up till now, the company has in total provided services to over 2,300 basic education schools and over 110 vocational schools. According to the performance commitment, net profits deducted of non-recurring profits and losses of Header Information Technology from 2016 to 2018 will be 52 million yuan, 65 million yuan and 81 million yuan respectively.
○ Guirenniao spends hundreds of millions yuan to deploy mobile Internet sports games
------
Guirenniao Co., Ltd. (603555.SH) proposes to increase capital in Shenzhen Startek Electronic Technology Co., Ltd. by contributing 100 million yuan. Upon completion of the contribution, the company will hold 45 percent shareholding of Startek.
Startek has been devoted to creating high-quality contents of mobile Internet sports games. Its product "Team of the Year" is the only football-theme mobile game officially authorized by Spain La Liga. Startek committed that its net profits for 2016 and 2017 will be no less than 29 million yuan in aggregation.
○ Guotong Pipeline wins bid for big order
------
Xinjiang Guotong Pipeline Co., Ltd. (0020025.SZ) has won the bid for prestressed concrete cylinder pipe (PCCP) procurement project with an amount of 548 million yuan, representing 139.45 percent of the company's audited revenue in 2015. It is estimated that the total time limit of the project is 36 months, and the average amount of annual contract execution is 183 million yuan, accounting for 46.48 percent of the company's audited revenue in 2015.
○ Reorganization of several companies approved
------
The reorganizations of Changjiang Runfa Machinery Co., ltd. (002435.SZ) and Lingnan Landscape Co., Ltd. (002717.SZ) have been approved by the China Securities Regulatory Commission (CSRC) unconditionally; the reorganization of Tangshan Port Group Co., Ltd. (601000.SH) has been approved by the CSRC conditionally.
TOP
[Financial Reports Express]
○ Taiji Industry expects four times' growth in interim report
------
Chongqing Taiji Industry (Group) Co., Ltd. (600129.SH) expects 433 percent growth in its interim report, primarily due to revenues derived from the completed reorganization of Chongqing Tong Jun Ge Co., Ltd. EGing Photovoltaic Technology Co., Ltd. (600537.SH) expects over 7 times' growth in the first half year, primarily due to sharp increase of sales volume of China's photovoltaic modules. Western Region Gold Co., Ltd. (601069.SH) expects 310 percent to 350 percent growth in its interim report, primarily due to the price hike of gold. Hua yuan Property Co., Ltd. (600743.SH) expects 175 percent to 193 percent growth in its interim report, primarily due to projects in Beijing and Changsha City satisfy the conditions for settlement.
[Trading Trends]
○ Shanghai Lingang Holdings bought through three institutional seats
------
The trading volume ranking list of July 25 shows that Shanghai Lingang Holdings Corporation Limited (600848.SH) was bought through three institutional seats with a total of 107 million yuan, accounting for 24.6 percent of intraday turnover. Another institutional seat sold 15.06 million yuan.
Comment: the company earlier announced that it would acquire assets of Pujiang Company through private placement. Such matter is currently still in progress. Institutions believe that Lingang Group is an enterprise under Shanghai State-owned Assets Supervision and Administration Commission (SASAC), and Shanghai Lingang is a listing platform under Lingang Group. The group has performed its commitment by injecting Pujiang Park to the listed company. In addition, as the biggest shareholder has previously inject abundant land resources into the listed company, it's performing of other assets injection in the future also worth attention.
[Trading Alarms]
○ Omnijoi Media Corporation IPO to debut on July 26
------
Omnijoi Media Corporation (300528.SZ) will offer for subscription on July 26 at the issuing price of 6.62 yuan per share. The company's PE ratio is 23 times. The upper limit of subscription is 31,000 shares. The company is primarily engaged in the production of TV plays and films.
TOP
○ Medium- and long-term plans on health development under preparation, medical treatment and services to improve
○ Daily power generation hit new high, supply and demand drive coal price higher
○ Tianhai Investment to acquire IMI, Yunnan Coal ＆ Energy to acquire heavy equipment assets
○ Taiji Industry expects four times' growth in interim report, Shanghai Lingang Holdings bought through three institutional seats
[SSN Focus]
○ Medium- and long-term plans on health development under preparation, medical treatment and services to improve
------
Xinhua News Agency reported that the Chinese government attaches great importance to maintaining the health of the people and has made significant progresses in deepening the reform and improving the medical insurance system for all people, improving the medical and health services system, establishing the basic pharmaceutical system and promoting the basic medical treatment and public health services, indicated Chinese President Xi Jinping during a meeting with World Health Organization Director General Margaret Chan on July 25. China has made decisions to promote the establishment a healthy China and is preparing the medium- and long-term plans on health development. It is an integral part of the two centennial targets of China to making the Chinese people access to higher medical and health services.
Comment: Institutes believe that with the aging of the population and the improvement of the medical insurance and revenues, the demand in the domestic medical treatment services industry has been increasing. However, the overall medical resources in China are insufficient and the quality is not high. The establishment of relevant medical resources and the IT application in medical treatment and the collection of medical data will enjoy huge investment opportunities in the following five years focusing on hierarchical diagnosis. Wonders Information Co., Ltd. (300168.SZ) is fully developing in the medical and health industry. Winning Health Technology Group Co., Ltd. (300253.SZ) is developing various Internet-based medical treatment businesses and its cloud businesses are favored by institutes.
[SSN Selection]
○ A capacity of over 13 million tons in the steel industry was cut in the first half and it is confident in completing the annual task of 45 million tons, indicated Feng Fei, vice minister of the Ministry of Industry and Information Technology (MIIT), on July 25.
○ 20 nuclear power units are under construction in the Chinese Mainland, ranking first in the world, indicated the president of the Chinese Nuclear Society.
○ The National Development and Reform Commission (NDRC) releases the plan on the development of the pharmaceutical industry, proposing to strengthen the innovation in brand-name drugs, first generic drugs, traditional Chinese medicines and high-end medical devices.
○ Shanghai Stock Connect recorded net capital inflow for 11 consecutive trading days. CITIC Securities Company Limited (06030.HK; 600030.SH), Anhui Conch Cement Company Limited (00914.HK; 600585.SH) and Ping An Insurance (Group) Company of China, Ltd. (02318.HK; 601318.SH) saw higher net buys.
○ China Calxon Group Co., Ltd. (000918.SZ) announced that Evergrande Real Estate Group Limited (03333.HK) has completed the full offer obligations to the company and became its shareholder.
TOP
[Industry Information]
○ Daily power generation hit new high, supply and demand drive coal price higher
------
The National Development and Reform Commission (NDRC) disclosed on its website on July 25 that due to the high-temperature weather across China, the daily power generation has been surging in recent days. It hit a new high on July 22 and 23. In addition, Xinhua News Agency reported that the State Grid Shandong Electric Power Company proposes to restrict the power supply to industries with high power consumption.
Comment: The increasing power consumption is driving more thermal power plants under operation and increasing the demand for coals. In terms of the supply, due to the output reduction for 276 working days, the coal inventory in major ports around the Bohai Sea has fallen to the lowest level since 2010. SSN learnt that Shenhua Group is going to unveil the price of coal transported through waterway in August. Price hike is highly expected. Zhongtai Securities are rosy about Shanxi Xishan Coal and Electricity Power Co., Ltd. (000983.SZ), Yanzhou Coal Mining Company Limited (01171.HK; 600188.SH) and Shaanxi Coal Industry Company Limited (601225.SH) as they are active in the SOEs reform and the price rise will have great effects on their performances.
TOP
[Announcement Interpretation]
○ Tianhai Investment to acquire IMI to develop IT supply
------
Tianjin Tianhai Investment Co., Ltd. (600751.SH) proposes to acquire 100 percent equities of IMI with 6,009 million U.S. dollars. The company will contribute 8.7 billion yuan with its own capitals while Guohua Life, the second biggest shareholder of the company with a shareholding of 14.45 percent, will invest 4 billion yuan. The remaining part will be paid with bank borrowings.
The IMI is a provider of the distribution of global IT products and technical solutions as well as other services. It recorded a net profit of 311 million U.S. dollars, 267 million U.S. dollars and 215 U.S. dollars from 2013 to 2015. Tianhai Investment indicated that it will develop comprehensive services in IT supply from the single shipment business after the transaction.?
○ Yunnan Coal ＆ Energy proposes to acquire heavy equipment assets
------
Yunnan Coal ＆ Energy Co., Ltd. (600792.SH) proposes to exchange the equivalent part of the entire equity of Yunnan KISC Heavy Equipment Manufacturing Group Co., Ltd. held by its controlling shareholder with the entire equity of Kunming Coking Gas Plant held by itself. The predicted value of the assets to be disposed of and bought are 606 million yuan and 419 million yuan respectively. The difference is satisfied by Kunming Iron＆ Steel Holding Co., Ltd. to the company in cash.
Yunnan KISC Heavy Equipment Manufacturing Group is primarily engaged in the design and sales of machinery and complete equipment; manufacturing, sales and maintenance of boiler, pressure vessel special equipment and electronic car weigher. In 2015, the company realized operation revenue of 548 million yuan, with net profits of - 111 million yuan. Yunnan Coal ＆ Energy indicated that the asset replacement will improve the company's financial condition, and strengthen the company's ongoing profitability.
○ Beijing IRTOUCH Systems proposes to buy Header Information Technology with RMB806 mln, increasing investment in education industry
------
Beijing IRTOUCH Systems Co., Ltd. (300282.SZ) proposes to buy the entire equity of Guangdong Header Information Technology Co., Ltd at the valuation of 806 million yuan, which will be raised by issuing shares at 29.5 yuan per share through private placement as well as cash payment. At the same time, the company proposes to raise supporting fund of 517 million yuan, the base date of private placement and price determination will be the first day of issuance.
Header Information Technology is a service provider primarily engaged in the provision of education informatization solution and education software to elementary and secondary schools, vocational schools and education management department in all levels. Up till now, the company has in total provided services to over 2,300 basic education schools and over 110 vocational schools. According to the performance commitment, net profits deducted of non-recurring profits and losses of Header Information Technology from 2016 to 2018 will be 52 million yuan, 65 million yuan and 81 million yuan respectively.
○ Guirenniao spends hundreds of millions yuan to deploy mobile Internet sports games
------
Guirenniao Co., Ltd. (603555.SH) proposes to increase capital in Shenzhen Startek Electronic Technology Co., Ltd. by contributing 100 million yuan. Upon completion of the contribution, the company will hold 45 percent shareholding of Startek.
Startek has been devoted to creating high-quality contents of mobile Internet sports games. Its product "Team of the Year" is the only football-theme mobile game officially authorized by Spain La Liga. Startek committed that its net profits for 2016 and 2017 will be no less than 29 million yuan in aggregation.
○ Guotong Pipeline wins bid for big order
------
Xinjiang Guotong Pipeline Co., Ltd. (0020025.SZ) has won the bid for prestressed concrete cylinder pipe (PCCP) procurement project with an amount of 548 million yuan, representing 139.45 percent of the company's audited revenue in 2015. It is estimated that the total time limit of the project is 36 months, and the average amount of annual contract execution is 183 million yuan, accounting for 46.48 percent of the company's audited revenue in 2015.
○ Reorganization of several companies approved
------
The reorganizations of Changjiang Runfa Machinery Co., ltd. (002435.SZ) and Lingnan Landscape Co., Ltd. (002717.SZ) have been approved by the China Securities Regulatory Commission (CSRC) unconditionally; the reorganization of Tangshan Port Group Co., Ltd. (601000.SH) has been approved by the CSRC conditionally.
TOP
[Financial Reports Express]
○ Taiji Industry expects four times' growth in interim report
------
Chongqing Taiji Industry (Group) Co., Ltd. (600129.SH) expects 433 percent growth in its interim report, primarily due to revenues derived from the completed reorganization of Chongqing Tong Jun Ge Co., Ltd. EGing Photovoltaic Technology Co., Ltd. (600537.SH) expects over 7 times' growth in the first half year, primarily due to sharp increase of sales volume of China's photovoltaic modules. Western Region Gold Co., Ltd. (601069.SH) expects 310 percent to 350 percent growth in its interim report, primarily due to the price hike of gold. Hua yuan Property Co., Ltd. (600743.SH) expects 175 percent to 193 percent growth in its interim report, primarily due to projects in Beijing and Changsha City satisfy the conditions for settlement.
[Trading Trends]
○ Shanghai Lingang Holdings bought through three institutional seats
------
The trading volume ranking list of July 25 shows that Shanghai Lingang Holdings Corporation Limited (600848.SH) was bought through three institutional seats with a total of 107 million yuan, accounting for 24.6 percent of intraday turnover. Another institutional seat sold 15.06 million yuan.
Comment: the company earlier announced that it would acquire assets of Pujiang Company through private placement. Such matter is currently still in progress. Institutions believe that Lingang Group is an enterprise under Shanghai State-owned Assets Supervision and Administration Commission (SASAC), and Shanghai Lingang is a listing platform under Lingang Group. The group has performed its commitment by injecting Pujiang Park to the listed company. In addition, as the biggest shareholder has previously inject abundant land resources into the listed company, it's performing of other assets injection in the future also worth attention.
[Trading Alarms]
○ Omnijoi Media Corporation IPO to debut on July 26
------
Omnijoi Media Corporation (300528.SZ) will offer for subscription on July 26 at the issuing price of 6.62 yuan per share. The company's PE ratio is 23 times. The upper limit of subscription is 31,000 shares. The company is primarily engaged in the production of TV plays and films.
TOP
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