[Today's Guide]
○Evergrande increased shareholding in China Vanke at RMB9.1 bln, various capitals chase after real estate stocks
○IOT technological development summit to kick off, standardization to boost application of downstream industries
○Urban Investment ＆ Finance Holdings bought shares of Hengshun Zhongsheng Group to threshold of 5 pct. for third time, Fengxing Wear Resistant Materials to raise RMB1.1 bln through private placement to acquire Xiongwei Precision Machinery
○China United Travel to acquire internet-based advertisement company, Restructuring of Chitianhua and others approved
[SSN Focus]
○Evergrande increased shareholding in China Vanke at RMB9.1 bln, various capitals chase after real estate stocks
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According to the latest announcement of China Vanke Co., Ltd. (02202.HK; 000002.SZ), China Evergrande Group (03333.HK) has totally bought 517 million shares of China Vanke as of August 4, accounting for 4.68 percent of the company's total share capital with a cost of 9.11 billion yuan. Therefore, the cost price is estimated to be 17.62 yuan per share. Evergrande has been involved in several real estate companies since this year. Registration of transferring 51.78 percent stake of China Calxon Group Co., Ltd. (000918.SZ) to Evergrande was finished on August 1. Evergrande bought Langfang Development Co., Ltd. (600149.SH) at 267 million yuan with shareholding accounting for 10 percent during July 27 and 29. The first-quarter reports of DongGuan Winnerway Industrial Zone Ltd. (000573.SZ) and Jinke Property Group Co., Ltd. (000656.SZ) show that products under Evergrande Life hold 4.35 percent and 1.77 percent stake in the two companies respectively.
Comment: With affluent liquidity, equities of high-quality listed companies are increasingly attractive to various capitals. Based on information which has been disclosed at present, Baoneng Holdings (China) Co., Ltd., China Resources (Holdings) Co., Ltd. and Anbang Insurance Group hold 25.4 percent, 15.24 percent and 6.177 percent stake in China Vanke, and asset management plans controlled by managers of China Vanke hold about 7.12 percent stake. In view of shareholding of funds and other institutions, there leaves a few tradable stocks of China Vanke. A research report of Huatai Securities thinks that China Risk Oriented Solvency System Construction Plan shifts focus from measuring size to measuring risks, making insurance firms more prefer to long-term equity investment. Stocks related to real estate industry with high dividend yield, high ROA and high-quality lands are expected to gain attention.
[SSN Selection]
○China Financial Futures Exchange releases introduction to reports related to relaxing restriction on futures index on August 4, indicating that it has not released any related information recently.
○Gasoline and diesel prices in China will decline by 220 yuan and 215 yuan per ton respectively from 24:00 of August 24, the biggest decrease this year.
○Three ministries and commissions with the Ministry of Industry and Information Technology (MIIT) included decide to hold the first contest on the innovative application of civil-military technology. The contest is themed as "military-civil integration, collaborative innovation".
○Nerekhta-2, a military robot developed by Russia will have a test at the end of this year, reported by Xinhua News Agency on August.
○The Bank of England announces interest rate cut by 25 basis points and increase in QE size. Exchange rate of pond falls but gold price surges upon the news.
TOP
[Industry Information]
○IOT technological development summit to kick off, standardization to boost application of downstream industries
------
2016 Shenzhen Internet of Things Technological Development and Application Summit is going to kick off in Shenzhen during August 16 and 17. This summit is held by National IC Design Shenzhen Industrial Center and mainly discusses application of various industries including sensor industry and Internet of Things (IOT). Institutions think that formulating NB-IOT, LTE-V and other relevant standards will boost rapid development of IOT industry.
Comment: Rearch institutions predict that the market size of IOT industry will exceed 1.5 trillion yuan in 2018. Such segmented industries as chip, sensor, application scenarios of key industries are expected to benefit from it. Based on research report of securities companies, Sanchuan Wisdom Technology Co., Ltd. (300066.SZ) is engaged in intelligent water meter and is now cooperating with Huawei Technologies Corp. to develop IOT water meter based on NB-IoT standard. Henan Hanwei Electronics Co., Ltd. (300007.SZ), a leader in gas sensor field in China, owns a market share with as high as 60 percent. Gohigh Data Networks Technology Co., Ltd. (000851.SZ) had developed LTE-V car networking facility and actively promotes commercialized use of LTE-V standard.
○High temperature brings big sales of air conditioning, intelligent products become new grow contributor
------
Air conditioning sees increasing sales recently due to high temperature in July. Data shows that online sales revenue of air conditioning grew by 96.5 percent year on year to 1.23 billion yuan during July 25 and 31. Offline sales revenue recorded 1.29 billion yuan during July 18 and 24, representing a year-on-year growth of 50.5 percent. Statistics from the Customs indicate that China has totally exported 29.09 million units of air conditioners with export amount of 35.2 billion yuan during January-June period, up by 17.5 percent and 12.2 percent from a year earlier.
Additionally, sales volume and revenue of intelligent air conditioners all increase this year, with proportion of intelligent air conditioners up to 14.97 percent now from 8.68 percent last year, data of National Information Center shows. It indicated that domestic market to this respect begins to be gradually hot, making it a new growth point for the industry after inverter-based air conditioner.
TOP
[Announcement Interpretation]
○Urban Investment ＆ Finance Holdings bought shares of Hengshun Zhongsheng Group to threshold of 5 pct. for third time
------
Qingdao Urban Investment ＆ Finance Holdings Group Co., Ltd., the shareholder of Qingdao Hengshun Zhongsheng Group Co., Ltd. (300208.SZ), has constantly increased 38,326,500 shareholdings in the listed company since January to August, accounting for 5 percent of the listed company's total equity. Urban Investment ＆ Finance Holdings indicated that it is optimistic about the listed company's business mode and development prospect, and it may continue to increase the shareholdings in next 12 months. Hengshun Zhongsheng previously disclosed that it proposes to acquire the assets under Urban Investment ＆ Finance Holdings with cash, showing that the two parties have cooperated with each other.
○Fengxing Wear Resistant Materials to raise RMB1.1 bln through private placement to acquire Xiongwei Precision Machinery
------
Anhui Fengxing Wear Resistant Materials Co., Ltd. (002760.SZ) proposes to raise 1.1 billion yuan through private placement with 34.03 yuan per share as the bottom price, so that to acquire the 100 percent equities of an automobile component enterprise Wuxi Xiongwei Precision Machinery Co., Ltd. The transaction price is preliminarily set at 1,287 million yuan, and Fengxing Wear Resistant Materials will self-raise the fund to supplement the price spread.
Based on performance commitment, Xiongwei Precision Machinery will achieve a net profit of 115 and 125 million yuan in 2016 and 2017 respectively, with accumulative net profit of 375 million yuan from 2016 to 2018. This transaction will make the listed company deploy in the automobile components field, and improve the competitiveness.
TOP
○China United Travel to acquire internet-based advertisement company
------
China United Travel Co., Ltd. (600358.SH) proposes to acquire the 100 equities of Beijing New Ray Zhongshi Cultural Media Co., Ltd. with 400 million yuan through private placement and cash. Meanwhile, it will also raise 190 million yuan through private placement from The Northern Investment Group Co, Ltd., Guangzhou Nanfang Investment Group Co., Ltd. and others under its actual controller Wang Chunfang. The offering price is 10.97 yuan per share for the said private placement.
New Ray Zhongshi Cultural Media is mainly engaged in internet-based advertisement marketing and strategic ＆ innovative businesses, focusing on games business. According to performance commitment, it will gain a net profit no less than 36, 47 and 61 million yuan from 2016 to 2018.
○Restructuring of Chitianhua and others approved
------
The restructuring of Guizhou Chitianhua Co., Ltd. (600227.SH) is conditionally approved by China Securities Regulatory Commission. Cases, including China Greatwall Computer Shenzhen Co., Ltd. (000066.SZ) and Greatwall Information Industry Co., Ltd. (000748.SZ) exchanging equities to merge, are unconditionally approved.
○Liantronics to acquire Tibet Drivers First Vision Media at RMB130 mln
------
Time Share Advertising ＆ Communication Co., Ltd., wholly owned by Shenzhen Liantronics Co., Ltd. (300269.SZ), proposes to acquire the 100 equities of Tibet Drivers First Vision Media Co., Ltd. with 130 million yuan. Drivers First Vision Media has become a monopolistic parking media ＆ outdoor advertisement company with largest media area and number in Chengdu city, and based on its performance commitment, it will gain 13, 14.56, 16.30, 17.94 and 19.73 million yuan for the net profit from 2016 to 2020 respectively.
[Financial Reports Express]
○Sailun Jinyu Group forecasts growth
------
Sailun Jinyu Group Co., Ltd. (601058.SH) forecasts a growth of 90 to 110 percent in its semi-annual report, mainly due to increased capacity of its factory in Vietnam and market expansion home and abroad.
[Trading Trends]
○Institutions to constantly deploy in white spirit sector during callback
------
White spirit sector calls back recently after previous hike. Short-term callback in this sector just brings in deployment opportunity, some institutional insiders indicated in the interview. In terms of medium and long term, this sector is in a three-to-five-year uptrend cycle, and it is now at the primary stage. Furthermore, September and October are busy months for the industry. White spirit sector is expected to set new highs after short adjustment. Most institutions now place 3 percent of their funds in this sector, and their allocation proportion in bullish market of 2009 was twice of that now, hence, there is still a space, according to situation disclosed in semi-annual reports.
[Trading Alarms]
○Shanghai Film and New Trend International Logis-Tech to issue new shares on Aug. 5
------
Shanghai Film Co. Ltd. (601595.SH) will issue shares at 10.19 yuan per share, with P/E ratio of 22 times and upper subscription limit of 3,7000 shares, and the company is mainly engaged in film issuance and show; New Trend International Logis-Tech Co., Ltd. (300532.SZ): 16.32 yuan per share, 23 times, 8,000 shares, comprehensive solutions for automatic logistics system.
TOP
○Evergrande increased shareholding in China Vanke at RMB9.1 bln, various capitals chase after real estate stocks
○IOT technological development summit to kick off, standardization to boost application of downstream industries
○Urban Investment ＆ Finance Holdings bought shares of Hengshun Zhongsheng Group to threshold of 5 pct. for third time, Fengxing Wear Resistant Materials to raise RMB1.1 bln through private placement to acquire Xiongwei Precision Machinery
○China United Travel to acquire internet-based advertisement company, Restructuring of Chitianhua and others approved
[SSN Focus]
○Evergrande increased shareholding in China Vanke at RMB9.1 bln, various capitals chase after real estate stocks
------
According to the latest announcement of China Vanke Co., Ltd. (02202.HK; 000002.SZ), China Evergrande Group (03333.HK) has totally bought 517 million shares of China Vanke as of August 4, accounting for 4.68 percent of the company's total share capital with a cost of 9.11 billion yuan. Therefore, the cost price is estimated to be 17.62 yuan per share. Evergrande has been involved in several real estate companies since this year. Registration of transferring 51.78 percent stake of China Calxon Group Co., Ltd. (000918.SZ) to Evergrande was finished on August 1. Evergrande bought Langfang Development Co., Ltd. (600149.SH) at 267 million yuan with shareholding accounting for 10 percent during July 27 and 29. The first-quarter reports of DongGuan Winnerway Industrial Zone Ltd. (000573.SZ) and Jinke Property Group Co., Ltd. (000656.SZ) show that products under Evergrande Life hold 4.35 percent and 1.77 percent stake in the two companies respectively.
Comment: With affluent liquidity, equities of high-quality listed companies are increasingly attractive to various capitals. Based on information which has been disclosed at present, Baoneng Holdings (China) Co., Ltd., China Resources (Holdings) Co., Ltd. and Anbang Insurance Group hold 25.4 percent, 15.24 percent and 6.177 percent stake in China Vanke, and asset management plans controlled by managers of China Vanke hold about 7.12 percent stake. In view of shareholding of funds and other institutions, there leaves a few tradable stocks of China Vanke. A research report of Huatai Securities thinks that China Risk Oriented Solvency System Construction Plan shifts focus from measuring size to measuring risks, making insurance firms more prefer to long-term equity investment. Stocks related to real estate industry with high dividend yield, high ROA and high-quality lands are expected to gain attention.
[SSN Selection]
○China Financial Futures Exchange releases introduction to reports related to relaxing restriction on futures index on August 4, indicating that it has not released any related information recently.
○Gasoline and diesel prices in China will decline by 220 yuan and 215 yuan per ton respectively from 24:00 of August 24, the biggest decrease this year.
○Three ministries and commissions with the Ministry of Industry and Information Technology (MIIT) included decide to hold the first contest on the innovative application of civil-military technology. The contest is themed as "military-civil integration, collaborative innovation".
○Nerekhta-2, a military robot developed by Russia will have a test at the end of this year, reported by Xinhua News Agency on August.
○The Bank of England announces interest rate cut by 25 basis points and increase in QE size. Exchange rate of pond falls but gold price surges upon the news.
TOP
[Industry Information]
○IOT technological development summit to kick off, standardization to boost application of downstream industries
------
2016 Shenzhen Internet of Things Technological Development and Application Summit is going to kick off in Shenzhen during August 16 and 17. This summit is held by National IC Design Shenzhen Industrial Center and mainly discusses application of various industries including sensor industry and Internet of Things (IOT). Institutions think that formulating NB-IOT, LTE-V and other relevant standards will boost rapid development of IOT industry.
Comment: Rearch institutions predict that the market size of IOT industry will exceed 1.5 trillion yuan in 2018. Such segmented industries as chip, sensor, application scenarios of key industries are expected to benefit from it. Based on research report of securities companies, Sanchuan Wisdom Technology Co., Ltd. (300066.SZ) is engaged in intelligent water meter and is now cooperating with Huawei Technologies Corp. to develop IOT water meter based on NB-IoT standard. Henan Hanwei Electronics Co., Ltd. (300007.SZ), a leader in gas sensor field in China, owns a market share with as high as 60 percent. Gohigh Data Networks Technology Co., Ltd. (000851.SZ) had developed LTE-V car networking facility and actively promotes commercialized use of LTE-V standard.
○High temperature brings big sales of air conditioning, intelligent products become new grow contributor
------
Air conditioning sees increasing sales recently due to high temperature in July. Data shows that online sales revenue of air conditioning grew by 96.5 percent year on year to 1.23 billion yuan during July 25 and 31. Offline sales revenue recorded 1.29 billion yuan during July 18 and 24, representing a year-on-year growth of 50.5 percent. Statistics from the Customs indicate that China has totally exported 29.09 million units of air conditioners with export amount of 35.2 billion yuan during January-June period, up by 17.5 percent and 12.2 percent from a year earlier.
Additionally, sales volume and revenue of intelligent air conditioners all increase this year, with proportion of intelligent air conditioners up to 14.97 percent now from 8.68 percent last year, data of National Information Center shows. It indicated that domestic market to this respect begins to be gradually hot, making it a new growth point for the industry after inverter-based air conditioner.
TOP
[Announcement Interpretation]
○Urban Investment ＆ Finance Holdings bought shares of Hengshun Zhongsheng Group to threshold of 5 pct. for third time
------
Qingdao Urban Investment ＆ Finance Holdings Group Co., Ltd., the shareholder of Qingdao Hengshun Zhongsheng Group Co., Ltd. (300208.SZ), has constantly increased 38,326,500 shareholdings in the listed company since January to August, accounting for 5 percent of the listed company's total equity. Urban Investment ＆ Finance Holdings indicated that it is optimistic about the listed company's business mode and development prospect, and it may continue to increase the shareholdings in next 12 months. Hengshun Zhongsheng previously disclosed that it proposes to acquire the assets under Urban Investment ＆ Finance Holdings with cash, showing that the two parties have cooperated with each other.
○Fengxing Wear Resistant Materials to raise RMB1.1 bln through private placement to acquire Xiongwei Precision Machinery
------
Anhui Fengxing Wear Resistant Materials Co., Ltd. (002760.SZ) proposes to raise 1.1 billion yuan through private placement with 34.03 yuan per share as the bottom price, so that to acquire the 100 percent equities of an automobile component enterprise Wuxi Xiongwei Precision Machinery Co., Ltd. The transaction price is preliminarily set at 1,287 million yuan, and Fengxing Wear Resistant Materials will self-raise the fund to supplement the price spread.
Based on performance commitment, Xiongwei Precision Machinery will achieve a net profit of 115 and 125 million yuan in 2016 and 2017 respectively, with accumulative net profit of 375 million yuan from 2016 to 2018. This transaction will make the listed company deploy in the automobile components field, and improve the competitiveness.
TOP
○China United Travel to acquire internet-based advertisement company
------
China United Travel Co., Ltd. (600358.SH) proposes to acquire the 100 equities of Beijing New Ray Zhongshi Cultural Media Co., Ltd. with 400 million yuan through private placement and cash. Meanwhile, it will also raise 190 million yuan through private placement from The Northern Investment Group Co, Ltd., Guangzhou Nanfang Investment Group Co., Ltd. and others under its actual controller Wang Chunfang. The offering price is 10.97 yuan per share for the said private placement.
New Ray Zhongshi Cultural Media is mainly engaged in internet-based advertisement marketing and strategic ＆ innovative businesses, focusing on games business. According to performance commitment, it will gain a net profit no less than 36, 47 and 61 million yuan from 2016 to 2018.
○Restructuring of Chitianhua and others approved
------
The restructuring of Guizhou Chitianhua Co., Ltd. (600227.SH) is conditionally approved by China Securities Regulatory Commission. Cases, including China Greatwall Computer Shenzhen Co., Ltd. (000066.SZ) and Greatwall Information Industry Co., Ltd. (000748.SZ) exchanging equities to merge, are unconditionally approved.
○Liantronics to acquire Tibet Drivers First Vision Media at RMB130 mln
------
Time Share Advertising ＆ Communication Co., Ltd., wholly owned by Shenzhen Liantronics Co., Ltd. (300269.SZ), proposes to acquire the 100 equities of Tibet Drivers First Vision Media Co., Ltd. with 130 million yuan. Drivers First Vision Media has become a monopolistic parking media ＆ outdoor advertisement company with largest media area and number in Chengdu city, and based on its performance commitment, it will gain 13, 14.56, 16.30, 17.94 and 19.73 million yuan for the net profit from 2016 to 2020 respectively.
[Financial Reports Express]
○Sailun Jinyu Group forecasts growth
------
Sailun Jinyu Group Co., Ltd. (601058.SH) forecasts a growth of 90 to 110 percent in its semi-annual report, mainly due to increased capacity of its factory in Vietnam and market expansion home and abroad.
[Trading Trends]
○Institutions to constantly deploy in white spirit sector during callback
------
White spirit sector calls back recently after previous hike. Short-term callback in this sector just brings in deployment opportunity, some institutional insiders indicated in the interview. In terms of medium and long term, this sector is in a three-to-five-year uptrend cycle, and it is now at the primary stage. Furthermore, September and October are busy months for the industry. White spirit sector is expected to set new highs after short adjustment. Most institutions now place 3 percent of their funds in this sector, and their allocation proportion in bullish market of 2009 was twice of that now, hence, there is still a space, according to situation disclosed in semi-annual reports.
[Trading Alarms]
○Shanghai Film and New Trend International Logis-Tech to issue new shares on Aug. 5
------
Shanghai Film Co. Ltd. (601595.SH) will issue shares at 10.19 yuan per share, with P/E ratio of 22 times and upper subscription limit of 3,7000 shares, and the company is mainly engaged in film issuance and show; New Trend International Logis-Tech Co., Ltd. (300532.SZ): 16.32 yuan per share, 23 times, 8,000 shares, comprehensive solutions for automatic logistics system.
TOP
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