[Today's Guide]
○ Xi requires following target of building strong armed forces and building modern military forces
○ Strategic Outline on the Development of IT Application released, Sony to introduce PS VR
○ Techcent Environment to acquire BWT, Aoto Electronics to acquire lamp firm
○ Sinonet ＆Xinlong Science ＆Tech forests growth of 4 times for first three quarters, Minkave Tech. proposes high share conversion in semi-annual report
[SSN Focus]
○ Xi requires following target of building strong armed forces and building modern military forces
------
The Political Bureau of the CPC Central Committee held the 34th study seminar on deepening national defense and armed forces reform on July 26. General Secretary of the Communist Party of China Central Committee Xi Jinping presided over the seminar and called for following the target of building strong armed forces under new conditions and consolidating the national defense and strengthening the army. The overall goal is to achieve progress and concrete results before 2020 in military administration and joint operational command and build a modern military with Chinese characteristics that can win information age wars. Xi also inspected the PLA Army general command on July 27, requiring building a strong modern and new type of army.
Comment: The modern battles are advancing towards digitalized and networking trends. Thanks to the national strategies, the IT application in Chinese military engineering enjoys huge potential. The electronic information and security products for national defense will benefit from it. Hunan Jiangnan Red Arrow Co., Ltd. (000519.SZ) is building an intelligent ammunition platform for China North Industries Group Corporation. The military engineering communication system independently developed by Huaxun Fangzhou Co., Ltd. (000687.SZ) can be applied in the commend and controlling system and the communication and scouting system. China Avionics Systems Co., Ltd. (600372.SH) is the avionics system under the Aviation Industry Corporation of China. Many institutes are rosy about the above companies.
[SSN Selection]
○ The executive meeting of the State Council held on July 27 requires establishing legalization- and market-based de-capacity mechanism and completing the targets in cutting the excessive capacity in the crude steel and coal industries of this year.
○ The latest Bohai-Rim steam-coal price surged 9 yuan/ton. Insiders believe that four major coal enterprises may raise the price by 20 to 25 yuan/ton in August.
○ Fund managers interviewed estimate that the market is seeking new growth logic after the rapid adjustment and the opportunities lie in advancing the reform.
○ The State Council Information Office will hold a press conference at 3:00 PM, July 28 to introduce relevant policies on the reform of the taxi service industry and interim measures for the administration of online car-hailing operation and services.
○ Shenzhen Stock Exchange warns the risks on the delisting of Dandong Xintai Electric Co., Ltd. (300372.SZ) again. Xinhuanet reported that some securities companies have required clients signing the letter of risk disclosure on site before buying.
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[Industry Information]
○ Strategic Outline on the Development of IT Application released, 5G R＆D and e-government affairs to speed up in advancing
------
Xinhua News Agency reported on July 27 that the General Office of the CPC Central Committee and the General Office of the State Council released the Strategic Outline on the Development of IT Application in China, proposing to make breakthroughs in the research and development of the fifth generation of mobile communication (5G) technologies and the standards by 2020. The core technologies in certain industries will reach the internationally advanced level and the international competitiveness of the information industry will be significantly improved. It will make obvious progresses in the digitalization, networking and intelligentialization of key industries and a networking coordinated innovation system will be formed on the whole. The e-government affairs will support the national governance system and the strong modern governance ability will be formed. The IT application will play a leading role in driving the modernization construction.
Comment: The outline is the framework document on regulating and directing the development of the national IT application in the following decade and will greatly promote the research and development of 5G and e-government affairs. In terms of 5G, China United Network Communications Limited (600050.SH) and Huawei Technologies Co., Ltd. signed a cooperation agreement on 5G and the Internet of Things. ZTE Corporation (00763.HK; 000063.SZ) and China Mobile Limited (00941.HK) have completed the verification of sample machines on key high-frequent 5G technologies and the performance testing. Beijing Thunisoft Co., Ltd. (300271.SZ) is engaged in the development of products for the e-government affairs system and relevant services.
○ Sony to introduce PS VR, hardware demand to surge
------
Sony announced on July 27 afternoon that it will release the PlayStation VR (PS VR) device across the Chinese mainland. The PS VR will cost 2,999 yuan. It will be available from Oct. 13 in the domestic market as well as overseas markets. The use of the PS VR does not need a computer with high prices and only a PS4 is enough for its use. Compared with Oculus cv1 and HTC vive, the PS VR enjoys price advantages.
Comment: Sony, as digital entertainment giant, is expected to win the market with its customer foundation and products' cost performance, and boost the development of the VR industry. Currently, domestic enterprises are making investment in VR. Institutions estimate that mobile phone enterprises will enter the VR industry in the next half of this year and next year, and develop mobile VR products for certain phones. Demands for hardware are expanded to explode. Suzhou Anjie Technology Co., Ltd. (002635.SZ) said on its interactive platform that it is developing VR products. GoerTek Inc. (002241.SZ) is making investment in VR, and its products is in normal supply.
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[Announcement Interpretation]
○ Techcent Environment to acquire BWT for RMB 1.7bln to invest in environmental protection
------
Chengdu Techcent Environment Co., Ltd. (300362.SZ) proposes to raise 1.7 billion yuan by issuing 126 million shares at 13.51 yuan per share to acquire 100 percent equities of Chengdu Zhongde Techcent Investment Co., Ltd. Meanwhile, it proposes to raise 424 million yuan supporting fund through private placement via auction. Techcent Environment will hold 100 percent equities of BWT via Zhongde Techcent Investment after the transaction.
BWT is a comprehensive supplier of industrial filtration and separation, water treatment equipment and system solutions, and has built a R＆D, production and sales system around the globe. BWT proposes that its accumulative net profit from 2016 to 2018 after deducting non-recurring profit and loss is no less than 33.83 million euros. Techcent Environment conducted its distribution plan of a 19.4-for-10 conversion of capital surplus into shares combined with 2.91 yuan dividend in its annual report on July 15.
○ Aoto Electronics to acquire lamp firm Gold Lamp for RMB 300mln.
------
Shenzhen Aoto Electronics Co., Ltd. (002587.SZ) proposes to acquire 100 percent equities of Shenzhen Gold Lamp Engineering Co., Ltd. for 300 million yuan among which 75 million yuan will be paid in cash and the remainder will be paid by issuing 20 million shares at 11.25 yuan per share through private placement. It also proposes to raise 144 million yuan supporting fund through private placement at 13.13 yuan per share.
Gold Lamp is a well-known comprehensive solution provider for the lightening industry in China. The counter-party promises that its accumulative net profit after deducting non-recurring profit and loss from 2016 to 2018 is 23 million yuan, 28 million yuan, 33 million yuan and 39 million yuan, respectively. Aoto Electronics posted a net profit of 21.4 million yuan in 2015.
○ Watertek Information Tech and Iflytek gain approval for reorganization
------
Beijing Watertek Information Technology Co., Ltd. (300324.SZ) and Iflytek Co.,Ltd. (002230.SZ) gained conditional approval from the China Securities Regulatory Commission for their reorganization.
○ Wanda Cinema Line proposes to acquire Mtime for USD 280mln.
------
Wanda Cinema Line Co., Ltd. (002739.SZ) proposes to acquire 100 percent equities of the operational entity of Mtime for 280 million U.S. dollars. Mtime is a domestic media, film and e-commerce service platform that provides media information, movie reviews and online ticketing services. Wanda Cinema expects that Mtime is expected to make profit this year.
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[Financial Reports Express]
○ Sinonet ＆Xinlong Science ＆Tech forests growth of 4 times for first three quarters
------
Anhui Sinonet ＆Xinlong Science＆Technology Co., Ltd. (002298.SZ) reports a growth of 700 percent in earnings for the first half of this year. It expects its net profit to grow 400 to 450 percent from January to September mainly due to growth its anti-terrorist, public security and smart city business.
Guangxi Wuzhou Communications Co., Ltd. (600368.SH) forecasts a growth of 10 percent for the first half year mainly because it sold equities of three subsidiaries. Inner Mongolia Junzheng Energy ＆ Chemical Group Co., Ltd. (601216.SH) forecasts a growth of 50 to 70 percent for the first half year mainly due to increase in gross profit.
○ Minkave Tech. proposes high share conversion in semi-annual report
------
The board of directors of Shenzhen Minkave Technology Co., Ltd. (300506.SZ) passes the distribution plan of a 15-for-10 conversion of capital surplus into shares in its semi-annual report.
[Trading Alarms]
○ China Film to debut IPO on July 28
------
China Film Co., Ltd. (730977) will offer shares at 8.92 yuan per share with an upper limit of 14,000 shares for each applicant. The company's PE ratio is 23 times. The company is mainly engaged in film ＆ TV production, film issuance, film projection and film services.
返回
○ Xi requires following target of building strong armed forces and building modern military forces
○ Strategic Outline on the Development of IT Application released, Sony to introduce PS VR
○ Techcent Environment to acquire BWT, Aoto Electronics to acquire lamp firm
○ Sinonet ＆Xinlong Science ＆Tech forests growth of 4 times for first three quarters, Minkave Tech. proposes high share conversion in semi-annual report
[SSN Focus]
○ Xi requires following target of building strong armed forces and building modern military forces
------
The Political Bureau of the CPC Central Committee held the 34th study seminar on deepening national defense and armed forces reform on July 26. General Secretary of the Communist Party of China Central Committee Xi Jinping presided over the seminar and called for following the target of building strong armed forces under new conditions and consolidating the national defense and strengthening the army. The overall goal is to achieve progress and concrete results before 2020 in military administration and joint operational command and build a modern military with Chinese characteristics that can win information age wars. Xi also inspected the PLA Army general command on July 27, requiring building a strong modern and new type of army.
Comment: The modern battles are advancing towards digitalized and networking trends. Thanks to the national strategies, the IT application in Chinese military engineering enjoys huge potential. The electronic information and security products for national defense will benefit from it. Hunan Jiangnan Red Arrow Co., Ltd. (000519.SZ) is building an intelligent ammunition platform for China North Industries Group Corporation. The military engineering communication system independently developed by Huaxun Fangzhou Co., Ltd. (000687.SZ) can be applied in the commend and controlling system and the communication and scouting system. China Avionics Systems Co., Ltd. (600372.SH) is the avionics system under the Aviation Industry Corporation of China. Many institutes are rosy about the above companies.
[SSN Selection]
○ The executive meeting of the State Council held on July 27 requires establishing legalization- and market-based de-capacity mechanism and completing the targets in cutting the excessive capacity in the crude steel and coal industries of this year.
○ The latest Bohai-Rim steam-coal price surged 9 yuan/ton. Insiders believe that four major coal enterprises may raise the price by 20 to 25 yuan/ton in August.
○ Fund managers interviewed estimate that the market is seeking new growth logic after the rapid adjustment and the opportunities lie in advancing the reform.
○ The State Council Information Office will hold a press conference at 3:00 PM, July 28 to introduce relevant policies on the reform of the taxi service industry and interim measures for the administration of online car-hailing operation and services.
○ Shenzhen Stock Exchange warns the risks on the delisting of Dandong Xintai Electric Co., Ltd. (300372.SZ) again. Xinhuanet reported that some securities companies have required clients signing the letter of risk disclosure on site before buying.
返回
[Industry Information]
○ Strategic Outline on the Development of IT Application released, 5G R＆D and e-government affairs to speed up in advancing
------
Xinhua News Agency reported on July 27 that the General Office of the CPC Central Committee and the General Office of the State Council released the Strategic Outline on the Development of IT Application in China, proposing to make breakthroughs in the research and development of the fifth generation of mobile communication (5G) technologies and the standards by 2020. The core technologies in certain industries will reach the internationally advanced level and the international competitiveness of the information industry will be significantly improved. It will make obvious progresses in the digitalization, networking and intelligentialization of key industries and a networking coordinated innovation system will be formed on the whole. The e-government affairs will support the national governance system and the strong modern governance ability will be formed. The IT application will play a leading role in driving the modernization construction.
Comment: The outline is the framework document on regulating and directing the development of the national IT application in the following decade and will greatly promote the research and development of 5G and e-government affairs. In terms of 5G, China United Network Communications Limited (600050.SH) and Huawei Technologies Co., Ltd. signed a cooperation agreement on 5G and the Internet of Things. ZTE Corporation (00763.HK; 000063.SZ) and China Mobile Limited (00941.HK) have completed the verification of sample machines on key high-frequent 5G technologies and the performance testing. Beijing Thunisoft Co., Ltd. (300271.SZ) is engaged in the development of products for the e-government affairs system and relevant services.
○ Sony to introduce PS VR, hardware demand to surge
------
Sony announced on July 27 afternoon that it will release the PlayStation VR (PS VR) device across the Chinese mainland. The PS VR will cost 2,999 yuan. It will be available from Oct. 13 in the domestic market as well as overseas markets. The use of the PS VR does not need a computer with high prices and only a PS4 is enough for its use. Compared with Oculus cv1 and HTC vive, the PS VR enjoys price advantages.
Comment: Sony, as digital entertainment giant, is expected to win the market with its customer foundation and products' cost performance, and boost the development of the VR industry. Currently, domestic enterprises are making investment in VR. Institutions estimate that mobile phone enterprises will enter the VR industry in the next half of this year and next year, and develop mobile VR products for certain phones. Demands for hardware are expanded to explode. Suzhou Anjie Technology Co., Ltd. (002635.SZ) said on its interactive platform that it is developing VR products. GoerTek Inc. (002241.SZ) is making investment in VR, and its products is in normal supply.
返回
[Announcement Interpretation]
○ Techcent Environment to acquire BWT for RMB 1.7bln to invest in environmental protection
------
Chengdu Techcent Environment Co., Ltd. (300362.SZ) proposes to raise 1.7 billion yuan by issuing 126 million shares at 13.51 yuan per share to acquire 100 percent equities of Chengdu Zhongde Techcent Investment Co., Ltd. Meanwhile, it proposes to raise 424 million yuan supporting fund through private placement via auction. Techcent Environment will hold 100 percent equities of BWT via Zhongde Techcent Investment after the transaction.
BWT is a comprehensive supplier of industrial filtration and separation, water treatment equipment and system solutions, and has built a R＆D, production and sales system around the globe. BWT proposes that its accumulative net profit from 2016 to 2018 after deducting non-recurring profit and loss is no less than 33.83 million euros. Techcent Environment conducted its distribution plan of a 19.4-for-10 conversion of capital surplus into shares combined with 2.91 yuan dividend in its annual report on July 15.
○ Aoto Electronics to acquire lamp firm Gold Lamp for RMB 300mln.
------
Shenzhen Aoto Electronics Co., Ltd. (002587.SZ) proposes to acquire 100 percent equities of Shenzhen Gold Lamp Engineering Co., Ltd. for 300 million yuan among which 75 million yuan will be paid in cash and the remainder will be paid by issuing 20 million shares at 11.25 yuan per share through private placement. It also proposes to raise 144 million yuan supporting fund through private placement at 13.13 yuan per share.
Gold Lamp is a well-known comprehensive solution provider for the lightening industry in China. The counter-party promises that its accumulative net profit after deducting non-recurring profit and loss from 2016 to 2018 is 23 million yuan, 28 million yuan, 33 million yuan and 39 million yuan, respectively. Aoto Electronics posted a net profit of 21.4 million yuan in 2015.
○ Watertek Information Tech and Iflytek gain approval for reorganization
------
Beijing Watertek Information Technology Co., Ltd. (300324.SZ) and Iflytek Co.,Ltd. (002230.SZ) gained conditional approval from the China Securities Regulatory Commission for their reorganization.
○ Wanda Cinema Line proposes to acquire Mtime for USD 280mln.
------
Wanda Cinema Line Co., Ltd. (002739.SZ) proposes to acquire 100 percent equities of the operational entity of Mtime for 280 million U.S. dollars. Mtime is a domestic media, film and e-commerce service platform that provides media information, movie reviews and online ticketing services. Wanda Cinema expects that Mtime is expected to make profit this year.
返回
[Financial Reports Express]
○ Sinonet ＆Xinlong Science ＆Tech forests growth of 4 times for first three quarters
------
Anhui Sinonet ＆Xinlong Science＆Technology Co., Ltd. (002298.SZ) reports a growth of 700 percent in earnings for the first half of this year. It expects its net profit to grow 400 to 450 percent from January to September mainly due to growth its anti-terrorist, public security and smart city business.
Guangxi Wuzhou Communications Co., Ltd. (600368.SH) forecasts a growth of 10 percent for the first half year mainly because it sold equities of three subsidiaries. Inner Mongolia Junzheng Energy ＆ Chemical Group Co., Ltd. (601216.SH) forecasts a growth of 50 to 70 percent for the first half year mainly due to increase in gross profit.
○ Minkave Tech. proposes high share conversion in semi-annual report
------
The board of directors of Shenzhen Minkave Technology Co., Ltd. (300506.SZ) passes the distribution plan of a 15-for-10 conversion of capital surplus into shares in its semi-annual report.
[Trading Alarms]
○ China Film to debut IPO on July 28
------
China Film Co., Ltd. (730977) will offer shares at 8.92 yuan per share with an upper limit of 14,000 shares for each applicant. The company's PE ratio is 23 times. The company is mainly engaged in film ＆ TV production, film issuance, film projection and film services.
返回
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