[Today's Guide]
○De-capacity of petrochemical industry put on agenda, leading enterprises to benefit from structural adjustment
○Chinese High-end Chips Alliance established, IC domestication to speed up
○China National Medicines to invest in medicine distribution asset, Sinocare to add stakes in principal business
○Dowstone Technology inks big order, Eerduosi Resources bought through three institutional seats
[SSN Focus]
○De-capacity of petrochemical industry put on agenda, leading enterprises to benefit from structural adjustment
------
The General Office of the State Council recently printed and distributed the Guidance on Adjusting Structure, Promoting Transformation and Improving Efficiency for the Petrochemical Industry. It is proposed in the Guidance to advance the supply-side structural reform, actively expand market, stick to innovation-driven development and improve development environment. It is also proposed to strive to cut capacity, decrease consumption, reduce emission, improve weak points, adjust arrangement, promote security, and push the petrochemical industry to improve quality and efficiency, transform and upgrade, and achieve healthy development.
Comment: It means that de-capacity of China's petrochemical industry has been put on agenda. At present, China is faced with the overcapacity of traditional petrochemical products and the shortage of resource products and high-end petrochemical products. Leading enterprises might benefit from the structural adjustment, transformation and upgrading. Wanhua Chemical Group Co., Ltd. (600309.SH) is the only company with independent intellectual property of MDI manufacturing technology in China. The company sees a growth of 34 percent in terms of net profit in the first half. Its net profit in the second quarter records new high of quarterly net profit since it gets listed. The private placement of Hengyi Petrochemical Co., Ltd. (000703.SZ) is recently nodded. Institutions believe that the accelerated progress of fundraising projects will help the company to straighten out its petrochemical industrial chain.
[SSN Selection]
○The Ministry of Industry and Information Technology (MIIT) on Aug. 3 printed and distributed the five-year action plan for promoting the international development of medium and small-size enterprises. Policy packages promoting private investment might be launched intensively in recent period.
○China's central bank held a forum for the heads of its branches to arrange the key work in the second half. It was proposed to continue prudent monetary policies.
○The coupon rate of 10-year government bonds calling for bids on Aug. 3 recorded a new low of 2.74 percent. Under the backdrop of negative interest rates worldwide, China's bond market becomes more appealing.
○China Nuclear Engineering Corporation Limited (601611.SH) recently entered into agreement with Indonesia for the development plan of high temperature gas cooled reactors, marking substantial progress achieved in promoting the technology overseas.
○As disclosed on the website of Shanghai People's Procuratorate on Aug. 3, Zhangjiagang Bonded Area Yishidun International Trade Co., Ltd. has been instituted prosecution by procuratorial organs for being suspected of manipulating the futures market.
TOP
[Industry Information]
○Chinese High-end Chips Alliance established, IC domestication to speed up
------
SSN learnt that 27 high-end chips, basic software and complete equipment application enterprises, well-known universities and institutes jointly proposed the establishment of the "Chinese High-end Chips Alliance" recently. The alliance is under the leadership of the leading group for the development of the national integrated circuit industry with the aim to establish the "structure-chips-software-complete equipment-system-information services" and promote the rapid development of the integrated circuit industry.
Comment: Institutes estimate that China will establish 10 wafer plants in 2016 and 2017 with a total investment of 100 billion yuan. Driven by the establishment of the alliance and the construction of wafer plants, chips, storage and other integrated circuit industries will see rapid development opportunities. Shenzhen Kaifa Technology Co., Ltd. (000021.SZ) indicated when receiving institutional investigation on Aug. 2 that Payton Technology (Shenzhen) Co., Ltd., a subsidiary under the company, is the only competitive company involved in memory chip industry in China and sees high gross profit rate; thanks to the sales growth of integrated circuit manufacturing equipment, Beijing Sevenstar Electronics Co., Ltd. (002371.SZ) records a growth of 56 percent in terms of revenue in the first half.
TOP
[Announcement Interpretation]
○China National Medicines to raise RMB6 bln for medicine distribution asset
------
China National Medicines Corporation Ltd. (600511.SH) proposes to issue shares to its substantial shareholder Sinopharm Group Co. Ltd. (01099.HK) and others at 25.1 yuan per share, so as to acquire 100 percent equities of Sinopharm Beijing Co., Ltd., 100 percent equities of Beijing Konruns Pharmaceutical Co., Ltd., 60 percent equities of Sinopharm Medicine Holding BeiJing HuaHong Co., Ltd., as well as 51 percent equities of Beijing Tianxingpuxin Bio-med Sinopharm Holding Co., Ltd. The transaction totals at 6,183 million yuan. It also plans to raise 1.13 billion yuan as supporting fund for projects implementing hospital supply chain expansion of targets. This restructuring solves the horizontal competition between the company and its controlling shareholder, and makes it as the only medicine distribution platform in Beijing under Sinopharm Group and high-class special narcotic drug distribution platform in China.
○Sinocare to wholly own Xinnuo Care Tech. and Sinocare Industrial Investment with RMB1,424 mln
------
Sinocare Inc. (300298.SZ) proposes to issue shares at 18.06 yuan per share to acquire 75 percent equities of Xinnuo Care Tech. Co., Ltd. and 64.98 percent equities of Sinocare Industrial Investment Co., Ltd. with 1,424 million yuan. The said two companies will be wholly owned by the listed company after transaction. Based on performance commitment, Trividia, a subsidiary of Xinnuo Care Tech., will accumulatively achieve a net profit no less than 36 billion yuan from 2016 to 2022.
Trividia is mainly engaged in blood glucose monitoring system and other diabetes ancillary products. PTS, subsidiary of Sinocare Industrial Investment, is mainly engaged in CardioChek blood fat ＆ glucose monitoring systems, A1CNow HbA1c monitoring systems and others, similar with Sinocare's products.
TOP
○Dowstone Technology signed cooperative agreement for 3D inkjet technique
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Guangdong Dowstone Technology Co., Ltd. (300409.SZ) has signed strategic cooperation agreement with Guangdong Dongpeng Holdings Co., Ltd. to gradually apply its 3D inkjet technique for upgrading polished tile and marble tile of Dongpeng Holdings. Meanwhile, Dowstone Technology will provide the latter a series of services, such as materials development ＆ supply, product design, technological service and marketing. Annual purchase scale is expected to be 150 million yuan during contract period, accounting for 27.10 percent of audited revenue of the listed company in 2015.
○Xingyu Automotive Lighting Systems selected by BMW AG as supporting supplier
------
Changzhou Xingyu Automotive Lighting Systems Co., Ltd. (601799.SH) is selected as supporting supplier of global platform by BMW AG for rear lamps of F45/F46 cars. Products of the listed company will be exported to Germany. It marks that its products further step towards high-end development.
[Financial Reports Express]
○China Vanke Co., Ltd. (000002.SZ) gained a sales volume of 27.44 billion yuan in July, up 15 percent year on year.
[Trading Trends]
○Eerduosi Resources bought through three institutional seats
------
The trading volume ranking list on August 3 shows that Inner Mongolia Eerduosi Resources Co., Ltd. (600295.SH) was bought through three institutional seats with a total of 104 million yuan, accounting for 35 percent of its intraday turnover.
Comment: Research reports of some securities companies and media indicated that its silicomanganese price has soared recently, according to announcement of the company announced in the evening. It pointed out that silicomanganese products realized a sales revenue of 2,023 million yuan in 2015, taking up 13 percent of the total revenue. Recently, silicomanganese price in the market is over 10 percent more than average level of last year, up over 50 percent when compared to average price of the first half year.
[Trading Alarms]
○Bank of Guiyang to issue shares on Aug. 4
------
Bank of Guiyang Co., Ltd. (680997.SH) will issue shares at 8.49 yuan per share, with P/E ratio of six times and upper subscription limit of 150,000 shares. The company is a regional joint-stock commercial bank with headquarter in Guiyang city.
TOP
○De-capacity of petrochemical industry put on agenda, leading enterprises to benefit from structural adjustment
○Chinese High-end Chips Alliance established, IC domestication to speed up
○China National Medicines to invest in medicine distribution asset, Sinocare to add stakes in principal business
○Dowstone Technology inks big order, Eerduosi Resources bought through three institutional seats
[SSN Focus]
○De-capacity of petrochemical industry put on agenda, leading enterprises to benefit from structural adjustment
------
The General Office of the State Council recently printed and distributed the Guidance on Adjusting Structure, Promoting Transformation and Improving Efficiency for the Petrochemical Industry. It is proposed in the Guidance to advance the supply-side structural reform, actively expand market, stick to innovation-driven development and improve development environment. It is also proposed to strive to cut capacity, decrease consumption, reduce emission, improve weak points, adjust arrangement, promote security, and push the petrochemical industry to improve quality and efficiency, transform and upgrade, and achieve healthy development.
Comment: It means that de-capacity of China's petrochemical industry has been put on agenda. At present, China is faced with the overcapacity of traditional petrochemical products and the shortage of resource products and high-end petrochemical products. Leading enterprises might benefit from the structural adjustment, transformation and upgrading. Wanhua Chemical Group Co., Ltd. (600309.SH) is the only company with independent intellectual property of MDI manufacturing technology in China. The company sees a growth of 34 percent in terms of net profit in the first half. Its net profit in the second quarter records new high of quarterly net profit since it gets listed. The private placement of Hengyi Petrochemical Co., Ltd. (000703.SZ) is recently nodded. Institutions believe that the accelerated progress of fundraising projects will help the company to straighten out its petrochemical industrial chain.
[SSN Selection]
○The Ministry of Industry and Information Technology (MIIT) on Aug. 3 printed and distributed the five-year action plan for promoting the international development of medium and small-size enterprises. Policy packages promoting private investment might be launched intensively in recent period.
○China's central bank held a forum for the heads of its branches to arrange the key work in the second half. It was proposed to continue prudent monetary policies.
○The coupon rate of 10-year government bonds calling for bids on Aug. 3 recorded a new low of 2.74 percent. Under the backdrop of negative interest rates worldwide, China's bond market becomes more appealing.
○China Nuclear Engineering Corporation Limited (601611.SH) recently entered into agreement with Indonesia for the development plan of high temperature gas cooled reactors, marking substantial progress achieved in promoting the technology overseas.
○As disclosed on the website of Shanghai People's Procuratorate on Aug. 3, Zhangjiagang Bonded Area Yishidun International Trade Co., Ltd. has been instituted prosecution by procuratorial organs for being suspected of manipulating the futures market.
TOP
[Industry Information]
○Chinese High-end Chips Alliance established, IC domestication to speed up
------
SSN learnt that 27 high-end chips, basic software and complete equipment application enterprises, well-known universities and institutes jointly proposed the establishment of the "Chinese High-end Chips Alliance" recently. The alliance is under the leadership of the leading group for the development of the national integrated circuit industry with the aim to establish the "structure-chips-software-complete equipment-system-information services" and promote the rapid development of the integrated circuit industry.
Comment: Institutes estimate that China will establish 10 wafer plants in 2016 and 2017 with a total investment of 100 billion yuan. Driven by the establishment of the alliance and the construction of wafer plants, chips, storage and other integrated circuit industries will see rapid development opportunities. Shenzhen Kaifa Technology Co., Ltd. (000021.SZ) indicated when receiving institutional investigation on Aug. 2 that Payton Technology (Shenzhen) Co., Ltd., a subsidiary under the company, is the only competitive company involved in memory chip industry in China and sees high gross profit rate; thanks to the sales growth of integrated circuit manufacturing equipment, Beijing Sevenstar Electronics Co., Ltd. (002371.SZ) records a growth of 56 percent in terms of revenue in the first half.
TOP
[Announcement Interpretation]
○China National Medicines to raise RMB6 bln for medicine distribution asset
------
China National Medicines Corporation Ltd. (600511.SH) proposes to issue shares to its substantial shareholder Sinopharm Group Co. Ltd. (01099.HK) and others at 25.1 yuan per share, so as to acquire 100 percent equities of Sinopharm Beijing Co., Ltd., 100 percent equities of Beijing Konruns Pharmaceutical Co., Ltd., 60 percent equities of Sinopharm Medicine Holding BeiJing HuaHong Co., Ltd., as well as 51 percent equities of Beijing Tianxingpuxin Bio-med Sinopharm Holding Co., Ltd. The transaction totals at 6,183 million yuan. It also plans to raise 1.13 billion yuan as supporting fund for projects implementing hospital supply chain expansion of targets. This restructuring solves the horizontal competition between the company and its controlling shareholder, and makes it as the only medicine distribution platform in Beijing under Sinopharm Group and high-class special narcotic drug distribution platform in China.
○Sinocare to wholly own Xinnuo Care Tech. and Sinocare Industrial Investment with RMB1,424 mln
------
Sinocare Inc. (300298.SZ) proposes to issue shares at 18.06 yuan per share to acquire 75 percent equities of Xinnuo Care Tech. Co., Ltd. and 64.98 percent equities of Sinocare Industrial Investment Co., Ltd. with 1,424 million yuan. The said two companies will be wholly owned by the listed company after transaction. Based on performance commitment, Trividia, a subsidiary of Xinnuo Care Tech., will accumulatively achieve a net profit no less than 36 billion yuan from 2016 to 2022.
Trividia is mainly engaged in blood glucose monitoring system and other diabetes ancillary products. PTS, subsidiary of Sinocare Industrial Investment, is mainly engaged in CardioChek blood fat ＆ glucose monitoring systems, A1CNow HbA1c monitoring systems and others, similar with Sinocare's products.
TOP
○Dowstone Technology signed cooperative agreement for 3D inkjet technique
------
Guangdong Dowstone Technology Co., Ltd. (300409.SZ) has signed strategic cooperation agreement with Guangdong Dongpeng Holdings Co., Ltd. to gradually apply its 3D inkjet technique for upgrading polished tile and marble tile of Dongpeng Holdings. Meanwhile, Dowstone Technology will provide the latter a series of services, such as materials development ＆ supply, product design, technological service and marketing. Annual purchase scale is expected to be 150 million yuan during contract period, accounting for 27.10 percent of audited revenue of the listed company in 2015.
○Xingyu Automotive Lighting Systems selected by BMW AG as supporting supplier
------
Changzhou Xingyu Automotive Lighting Systems Co., Ltd. (601799.SH) is selected as supporting supplier of global platform by BMW AG for rear lamps of F45/F46 cars. Products of the listed company will be exported to Germany. It marks that its products further step towards high-end development.
[Financial Reports Express]
○China Vanke Co., Ltd. (000002.SZ) gained a sales volume of 27.44 billion yuan in July, up 15 percent year on year.
[Trading Trends]
○Eerduosi Resources bought through three institutional seats
------
The trading volume ranking list on August 3 shows that Inner Mongolia Eerduosi Resources Co., Ltd. (600295.SH) was bought through three institutional seats with a total of 104 million yuan, accounting for 35 percent of its intraday turnover.
Comment: Research reports of some securities companies and media indicated that its silicomanganese price has soared recently, according to announcement of the company announced in the evening. It pointed out that silicomanganese products realized a sales revenue of 2,023 million yuan in 2015, taking up 13 percent of the total revenue. Recently, silicomanganese price in the market is over 10 percent more than average level of last year, up over 50 percent when compared to average price of the first half year.
[Trading Alarms]
○Bank of Guiyang to issue shares on Aug. 4
------
Bank of Guiyang Co., Ltd. (680997.SH) will issue shares at 8.49 yuan per share, with P/E ratio of six times and upper subscription limit of 150,000 shares. The company is a regional joint-stock commercial bank with headquarter in Guiyang city.
TOP
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