[Today's Guide]
○ Rare earth industry becomes more centralized, to cut excess capacity in 13th Five-Year Plan period
○ Tungsten price forecast revised up as supply and demand conditions improve
○ AVIC advances general aviation development, China Evergrande increases shareholding in China Vanke
○ Poly Real Estate and Beijing Capital Development see sales growth, three institutional seats buy Bailing Group Phar.
[SSN Focus]
○ Rare earth industry becomes more centralized, to cut excess capacity in 13th Five-Year Plan period
------
The 8th China Baotou International Rare Earth Industry Forum kicked off on Aug. 8. Zhou Changyi, head of the Department of Raw Material Industry of the Ministry of Industry and Information Technology (MIIT), said that the restructuring of the five major rare earth groups has been accepted, and the consolidation of China Minmetals Rare Earth Co., Ltd. (000831.SZ) is advancing. The productivity of China's six major rare earth groups in rare earth exploration and smelting reaches above 90 percent and 60 percent of the total productivity across the country. During the 13th Five-Year Plan period, China will vigorously promote the standard development of rare earth resources, eliminate and resolve excess capacity and promote intensive and high-end development of the industry.
Comment: Rare earth, as a valuable strategic resource, is widely used new energy, nuclear industry, aviation and aerospace and other high-tech field s. The prices of praseodymium neodymium oxide, praseodymium neodymium and terbium have rebounded 1 to 4 percent in the past week. Manufacturers are optimistic about the future market, and expect the industry's supply and demand conditions to improve as the industry restricts production and the government purchases for reserve. China Northern Rare Earth (Group) High-tech Co., Ltd. (600111.SH) will conduct strategic cooperation with China Rare Earth Co., Ltd. to jointly stabilize the rare earth market and strengthen cooperation in the development of rare earth applications. Various institutions published research reports, indicating that they are bullish about the Xiamen Tungsten Co., Ltd. (600549.SH), a rare earth resources integration platform based on Fujian Province, and Guangdong Weihua Corporation (002240.SZ) who has invested in waste magnets recovery.
[SSN Selection]
○ The State Council has issued the national 13th Five-Year Plan for scientific and technological innovation. The plan requires making continuous breakthroughs in core electronic devices, high-end chips, basic software products, integrated circuits and equipment, broadband mobile communications, numerically-controlled machine tool and other key technologies.
○China's yuan-denominated exports rose 2.9 percent year on year in July, representing increase for the fifth straight month.
○ China's digital publishing recorded a year-on-year increase of 30 percent in 2015, contributing 60 percent to the aggregate growth of the entire publishing industry.
○ Foreign media reported that Wanxiang Group plans to build an electric vehicle factory with an annual production of 50,000 in China.
○A laboratory of the Department of Energy of the U.S. Developed a high-effective technology that can converts carbon dioxide into fuels with tungsten diselenide as catalyst.
TOP
[Industry Information]
○ Tungsten price forecast revised up as supply and demand conditions improve
------
SSN learnt that Ganzhou Tungsten Industry Association raised its August forecast for average tungsten prices. The wolframite rice is 72,000 yuan per ton, up by 12.5 percent compared to July. In addition, APT is 113,000 yuan per ton, up by 13 percent from July,. APT particle is 176 yuan per kilogram, up by 5.4 percent from July. Domestic tungsten miners and traders said that they still have high expectations for continuously upward trend of the prices as the market has few inventories.
Comment: Brokerages noted in their research reports that as China tightens environmental policies, enterprises have seen a dramatic increase in environmental costs, which greatly shores up tungsten prices. In addition, as the tungsten industry is on the edge of break even, tungsten enterprises show strong intention to restrict production. This greatly facilitates to improve the supply and demand conditions of the industry. Chongyi Zhangyuan Tungsten Co., Ltd. (002378.SZ) ranks top in China in terms of the market share in tungsten powder, tungsten carbide and tempered alloy. China Tungsten And Hightech Materials Co., Ltd. (000657.SZ) plans to acquire tungsten assets of its controlling shareholder through private placement, and will provide 30 percent tungsten products for itself after the deal.
TOP
○ AVIC advances general aviation development to establish operation holding company
------
The Aviation Industry Corporation of China (AVIC) held a press conference on cooperation opportunities in general aviation industry on Aug. 8. It is reported that the AVIC established the general aviation office at its headquarters to promote the development of general aviation operation and services and improve the manufacturing capacity of domestic general aviation aircraft. The AVIC will establish a general aviation company to integrate current general aviation operation resources. It will strengthen local cooperation on general aviation operation and support and participate in domestic general aviation projects. It will give play to the overall advantages of the general aviation industrial chains and actively participate in the construction of local general aviation industries.
Comment: Based on the plan released by the AVIC, the revenue from the general aviation manufacturing industry will reach 10 billion yuan by 2020. The general aviation products delivered will account for about 20 percent of the globally new market and 40 percent of the domestic new market. The general aviation operation and annual flight will account about 20 percent of the domestic market. Listed companies under the AVIC include AVIC Aviation Engine Corporation Plc. (600893.SH), Jiangxi Hongdu Aviation Industry Co., Ltd. (600316.SH) and Avicopter Plc (600038.SH).
[Announcement Interpretation]
○ China Evergrande increases shareholding in China Vanke for recognition of its value
------
China Vanke Co., Ltd. (02202.HK; 000002.SZ) announced that as at Aug. 8, China Evergrande Group (03333.HK) totally holds 552 million stocks of the company, accounting for 5 percent of its total share capital. The simple equities changes report shows that seven companies under China Evergrande have bought stocks of the company from July 25 with an average price of 18.06 yuan per share. China Evergrande indicated that it recognizes the investment value in China Vanke. It will determine to increase or decrease the shareholding in the company based on market conditions as well as the business and stock price of China Vanke in the following 12 months.
In addition, Langfang Development Co., Ltd. (600149.SH) announced that China Evergrande proposes to increase the shareholding in the company with no less than 50 million yuan in the following 12 months. Based on SSN's statistics, Evergrande Life bought stocks of Guangzhou Zhiguang Electric Co., Ltd. (002169.SZ) and Henan Pinggao Electric Co., Ltd. (600312.SH) in the second quarter as the fourth and eighth biggest shareholder of such companies.
○ Actual controller increases shareholding in Lianchuang Opto-electronic
------
Deng Kaiyuan, the actual controller of Jianxi Lianchuang Opto-electronic Science ＆ technology Co., Ltd. (600363.SH) increased the shareholding in the company with 2.25 million shares from Aug. 1 to 8.
○ Thaihot Group's subsidiary acquires real estate company in Fuzhou with RMB550 mln
------
Fuzhou Zhongwei Real Estate Development Co., Ltd., a wholly-owned subsidiary of Thaihot Group Co., Ltd. (000732.SZ), acquired 80 percent equities of Fuzhou Guangye Real Estate Development Co., Ltd. with 550 million yuan. The acquisition will supplement the land reserve of the company in Fuzhou City.
TOP
[Financial Reports Express]
○ Poly Real Estate and Beijing Capital Development see sales growth in first seven months
------
Poly Real Estate Group Co., Ltd. (600048.SH) achieved a contracted amount of 122,771 million yuan in the first seven months, representing a year-on-year increase of 43.25 percent. Beijing Capital Development Co., Ltd. (600376.SH) chieved a contracted amount of 41,655 million yuan in the first seven months, representing a year-on-year increase of 164 percent.
[Trading Trends]
○ Three institutional seats buy Bailing Group Phar.
------
The trading volume ranking list on Aug. 8 shows that three institutional seats buy Guizhou Bailing Group Pharmaceutical Co., Ltd. (002424.SZ) with a total of 180 million yuan, accounting for 35 percent of its intraday turnover.
Comment: Institutes believe that since the varieties of Miao medicines have been increasing the introduction. The development of new medicines will highlight. The phase-I clinical test of new class 1 hepatitis B medicines has been completed with obvious antitoxic effects. Its other projects are also under progress.
[Trading Alarms]
○ OPPLE Lighting and Glacier conducts IPOs on Aug. 9
------
OPPLE Lighting Co., Ltd (603515.SH) issues shares at 14.94 yuan per share with a P/E ratio of 23 times and an upper subscription limit of 17,000 shares for each account. The company is principally engaged in green and energy-saving lighting. Glacier Co., Ltd. (300533.SZ) issues shares at 37.02 yuan per share with a P/E ratio of 22 times and an upper subscription limit of 10,000 shares for each account. The company is principally engaged in online games.
TOP
○ Rare earth industry becomes more centralized, to cut excess capacity in 13th Five-Year Plan period
○ Tungsten price forecast revised up as supply and demand conditions improve
○ AVIC advances general aviation development, China Evergrande increases shareholding in China Vanke
○ Poly Real Estate and Beijing Capital Development see sales growth, three institutional seats buy Bailing Group Phar.
[SSN Focus]
○ Rare earth industry becomes more centralized, to cut excess capacity in 13th Five-Year Plan period
------
The 8th China Baotou International Rare Earth Industry Forum kicked off on Aug. 8. Zhou Changyi, head of the Department of Raw Material Industry of the Ministry of Industry and Information Technology (MIIT), said that the restructuring of the five major rare earth groups has been accepted, and the consolidation of China Minmetals Rare Earth Co., Ltd. (000831.SZ) is advancing. The productivity of China's six major rare earth groups in rare earth exploration and smelting reaches above 90 percent and 60 percent of the total productivity across the country. During the 13th Five-Year Plan period, China will vigorously promote the standard development of rare earth resources, eliminate and resolve excess capacity and promote intensive and high-end development of the industry.
Comment: Rare earth, as a valuable strategic resource, is widely used new energy, nuclear industry, aviation and aerospace and other high-tech field s. The prices of praseodymium neodymium oxide, praseodymium neodymium and terbium have rebounded 1 to 4 percent in the past week. Manufacturers are optimistic about the future market, and expect the industry's supply and demand conditions to improve as the industry restricts production and the government purchases for reserve. China Northern Rare Earth (Group) High-tech Co., Ltd. (600111.SH) will conduct strategic cooperation with China Rare Earth Co., Ltd. to jointly stabilize the rare earth market and strengthen cooperation in the development of rare earth applications. Various institutions published research reports, indicating that they are bullish about the Xiamen Tungsten Co., Ltd. (600549.SH), a rare earth resources integration platform based on Fujian Province, and Guangdong Weihua Corporation (002240.SZ) who has invested in waste magnets recovery.
[SSN Selection]
○ The State Council has issued the national 13th Five-Year Plan for scientific and technological innovation. The plan requires making continuous breakthroughs in core electronic devices, high-end chips, basic software products, integrated circuits and equipment, broadband mobile communications, numerically-controlled machine tool and other key technologies.
○China's yuan-denominated exports rose 2.9 percent year on year in July, representing increase for the fifth straight month.
○ China's digital publishing recorded a year-on-year increase of 30 percent in 2015, contributing 60 percent to the aggregate growth of the entire publishing industry.
○ Foreign media reported that Wanxiang Group plans to build an electric vehicle factory with an annual production of 50,000 in China.
○A laboratory of the Department of Energy of the U.S. Developed a high-effective technology that can converts carbon dioxide into fuels with tungsten diselenide as catalyst.
TOP
[Industry Information]
○ Tungsten price forecast revised up as supply and demand conditions improve
------
SSN learnt that Ganzhou Tungsten Industry Association raised its August forecast for average tungsten prices. The wolframite rice is 72,000 yuan per ton, up by 12.5 percent compared to July. In addition, APT is 113,000 yuan per ton, up by 13 percent from July,. APT particle is 176 yuan per kilogram, up by 5.4 percent from July. Domestic tungsten miners and traders said that they still have high expectations for continuously upward trend of the prices as the market has few inventories.
Comment: Brokerages noted in their research reports that as China tightens environmental policies, enterprises have seen a dramatic increase in environmental costs, which greatly shores up tungsten prices. In addition, as the tungsten industry is on the edge of break even, tungsten enterprises show strong intention to restrict production. This greatly facilitates to improve the supply and demand conditions of the industry. Chongyi Zhangyuan Tungsten Co., Ltd. (002378.SZ) ranks top in China in terms of the market share in tungsten powder, tungsten carbide and tempered alloy. China Tungsten And Hightech Materials Co., Ltd. (000657.SZ) plans to acquire tungsten assets of its controlling shareholder through private placement, and will provide 30 percent tungsten products for itself after the deal.
TOP
○ AVIC advances general aviation development to establish operation holding company
------
The Aviation Industry Corporation of China (AVIC) held a press conference on cooperation opportunities in general aviation industry on Aug. 8. It is reported that the AVIC established the general aviation office at its headquarters to promote the development of general aviation operation and services and improve the manufacturing capacity of domestic general aviation aircraft. The AVIC will establish a general aviation company to integrate current general aviation operation resources. It will strengthen local cooperation on general aviation operation and support and participate in domestic general aviation projects. It will give play to the overall advantages of the general aviation industrial chains and actively participate in the construction of local general aviation industries.
Comment: Based on the plan released by the AVIC, the revenue from the general aviation manufacturing industry will reach 10 billion yuan by 2020. The general aviation products delivered will account for about 20 percent of the globally new market and 40 percent of the domestic new market. The general aviation operation and annual flight will account about 20 percent of the domestic market. Listed companies under the AVIC include AVIC Aviation Engine Corporation Plc. (600893.SH), Jiangxi Hongdu Aviation Industry Co., Ltd. (600316.SH) and Avicopter Plc (600038.SH).
[Announcement Interpretation]
○ China Evergrande increases shareholding in China Vanke for recognition of its value
------
China Vanke Co., Ltd. (02202.HK; 000002.SZ) announced that as at Aug. 8, China Evergrande Group (03333.HK) totally holds 552 million stocks of the company, accounting for 5 percent of its total share capital. The simple equities changes report shows that seven companies under China Evergrande have bought stocks of the company from July 25 with an average price of 18.06 yuan per share. China Evergrande indicated that it recognizes the investment value in China Vanke. It will determine to increase or decrease the shareholding in the company based on market conditions as well as the business and stock price of China Vanke in the following 12 months.
In addition, Langfang Development Co., Ltd. (600149.SH) announced that China Evergrande proposes to increase the shareholding in the company with no less than 50 million yuan in the following 12 months. Based on SSN's statistics, Evergrande Life bought stocks of Guangzhou Zhiguang Electric Co., Ltd. (002169.SZ) and Henan Pinggao Electric Co., Ltd. (600312.SH) in the second quarter as the fourth and eighth biggest shareholder of such companies.
○ Actual controller increases shareholding in Lianchuang Opto-electronic
------
Deng Kaiyuan, the actual controller of Jianxi Lianchuang Opto-electronic Science ＆ technology Co., Ltd. (600363.SH) increased the shareholding in the company with 2.25 million shares from Aug. 1 to 8.
○ Thaihot Group's subsidiary acquires real estate company in Fuzhou with RMB550 mln
------
Fuzhou Zhongwei Real Estate Development Co., Ltd., a wholly-owned subsidiary of Thaihot Group Co., Ltd. (000732.SZ), acquired 80 percent equities of Fuzhou Guangye Real Estate Development Co., Ltd. with 550 million yuan. The acquisition will supplement the land reserve of the company in Fuzhou City.
TOP
[Financial Reports Express]
○ Poly Real Estate and Beijing Capital Development see sales growth in first seven months
------
Poly Real Estate Group Co., Ltd. (600048.SH) achieved a contracted amount of 122,771 million yuan in the first seven months, representing a year-on-year increase of 43.25 percent. Beijing Capital Development Co., Ltd. (600376.SH) chieved a contracted amount of 41,655 million yuan in the first seven months, representing a year-on-year increase of 164 percent.
[Trading Trends]
○ Three institutional seats buy Bailing Group Phar.
------
The trading volume ranking list on Aug. 8 shows that three institutional seats buy Guizhou Bailing Group Pharmaceutical Co., Ltd. (002424.SZ) with a total of 180 million yuan, accounting for 35 percent of its intraday turnover.
Comment: Institutes believe that since the varieties of Miao medicines have been increasing the introduction. The development of new medicines will highlight. The phase-I clinical test of new class 1 hepatitis B medicines has been completed with obvious antitoxic effects. Its other projects are also under progress.
[Trading Alarms]
○ OPPLE Lighting and Glacier conducts IPOs on Aug. 9
------
OPPLE Lighting Co., Ltd (603515.SH) issues shares at 14.94 yuan per share with a P/E ratio of 23 times and an upper subscription limit of 17,000 shares for each account. The company is principally engaged in green and energy-saving lighting. Glacier Co., Ltd. (300533.SZ) issues shares at 37.02 yuan per share with a P/E ratio of 22 times and an upper subscription limit of 10,000 shares for each account. The company is principally engaged in online games.
TOP
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