[Today's Guide]
○ First quantum science experimental satellite to launched soon, unveil market of hundreds of billions yuan
○ Beijing SASAC released 13th Five-Year plan, commercial and trade enterprises to revalued
○ Bohai Capital Holding invests heavily in finance and aircraft leasing, Far East Smarter Energy to invest in lithium battery
○ Scimee Sci. ＆ Tech. gets nod for restructuring, Rainbow Heavy Industries forecasts 5-5.5 times growth from Q1-Q3
[SSN Focus]
○ First quantum science experimental satellite to launched soon, unveil market of hundreds of billions yuan
------
The SSN on August 10 learnt from the Chinese Academy of Sciences that China's first quantum science experimental satellite has arrived at Jiuquan Satellite Launch Center. The satellite, which aims to build space and land integration quantum secret communication and experiment network, will be launched at the appropriate condition in the middle of the month. The satellite is able to establish a quantum optical link between two optical stations on the land with a distance of thousand kilometers. CEO of the Tongxiang Dufei Communication Technology Co., Ltd. said in an interview that after the satellite operates smoothly, China will become the first country in the world to realize quantum communications between satellite and the land. Dufei Communication Technology is negotiating with over 90 banks in Hangzhou City in respect of relevant projects of the "Shanghai-Hangzhou Line".
Comment: quantum communication is reputed as the perfect solution for information security issue. In the future, this technology is expected to be promoted in transfer of account and payment. Industrial Securities estimated that the market will hit hundreds of billions yuan in the next 10 years. Suzhou New Sea Union Telecom Technology Co., Ltd. (002089.SZ) recently indicated in an investigation that the company has involved in military special network and quantum coding cryptography business, and the company currently has sufficient orders; the actual controller of CASTECH Inc. (002222.SZ) is the Institute of Research of the Structure under the Chinese academy of Sciences. The company indicated that it pays close attention to whether its products could be widely used in quantum communications.
[SSN Selection]
○ Xu Shaoshi, head of the National Development and Reform Commission (NDRC), has recently led a team to Jilin Province to conduct research on the special subject of revitalization of the northeast China. A key task of the investigation is to review the implementation of the State Council's policies.
○ China National Coal Association (CNCA) on August 10 indicated that it will stick to de-capacity of coal; the price index of thermal coal around the Bohai Ring Area released on the same day saw the largest single week growth.
○ Five companies under the Fosun Group in aggregate hold over 156 million H shares of New China Life Insurance Co., Ltd. (01336.HK; 601336.SH), representing 5.01 shareholding of New China Life Insurance.
○ Leshi Internet Information ＆ Technology Corp., Beijing (300104.SZ) recently announced that it will spend nearly 20 billion yuan to build a super automobile factory and automobile ecological town in Deqing, Zhejiang Province.
○ As of the time of writing on the night of August 10, main contracts of New York platinum and palladium futures had increased by 2.64 percent and 5.66 percent respectively, standing the new high of more than one year.
TOP
[Industry Information]
○ Beijing SASAC releases 13th Five-Year plan, commercial and trade enterprises to revalued
------
The Beijing SASAC State-owned Economy 13th Five-Year Plan was released on August 10. According to the plan, over 80 percent state-owned capital under Beijing municipality government will be concentrating in public service, infrastructure, people's livelihood, strategic industries and etc. from the end of 2020. The plan also proposes that it will build 10 to 15 leading listed companies in their respective industries in China with strength, large scale and well-known brands, and each competitive enterprise should at least control 1 listed company, so as to highlight reform and advance restructuring and listing of enterprises.
Comment: institutions pointed out four local state-owned commercial and trade companies in Beijing, including Wangfujing Group Co., Ltd. (600859.SH), Beijing Shougang Co., Ltd. (600723.SH), Beijing Urban-Rural Trade Centre Co., Ltd. (600861.SH) and Beijing Cuiwei Tower Co., Ltd. (603123.SH) all have some movements recently. In addition, theses four companies have sufficient capital resoruces, and properties held by them are likely to appreciate after revaluation. It is expected that continuous advancement of reform will result in the recovery of valuation of such companies.
○ Chrome turns to HTML5, webgame sees new opportunity
------
Sina Technology reported on Aug. 10 that Google released the detailed plan on replacing Flash with HTML5 as the default criteria for Chrome. It is reported that HTML5 will be set as the core content of Chrome, such as the default options for games and videos, in December. In addition, Mozilla and Microsoft also followed Google's pace with the target of turning more websites to HTML5.
Comment: The HTML5 technology can reduce memory consumption and CPU utility. It better meets the criteria of pages with higher security performance. Huachuang Securities believes that the overall size of the H5 industry will reach 40 billion yuan in the following three years. It is likely to be firstly used in web games and other game industries. In terms of listed companies, Shanghai U9 game Co., Ltd. (600652.SH) has acquired equities of multiple HTML5 game R＆D companies. Ourpalm Co., Ltd. (300315.SZ) has established strategic partnership with Beijing Egret Information Technology Co., Ltd., the largest HTML5 mobile game technology solution and service provider in China.
TOP
[Announcement Interpretation]
○ Bohai Capital Holding invests heavily in finance and aircraft leasing
------
Bohai Capital Holding Co., Ltd. (000415.SZ) proposes to issue shares through private placement at 6.57 yuan per share to buy 14.77 percent equities of Sinosafe Insurance for 1.7 billion yuan and buy 737 million shares of Hong Kong Aviation Capital (HKAC) for 1.13 billion yuan. It will also buy 100 percent equities of 12 aircraft leasing asset packages (12 SPV) for 33,832,900 U.S. dollars. Meanwhile, the company also proposes to raise 2.8 billion yuan supporting fund by issuing shares through private placement at no less than 6.57 yuan per share.
The company will take wholly control of HKAC after the deal. HKAC promises that its net profit after deducting extraordinary profits and losses from 2016 to 2018 will be no less than 56.96 million U.S. dollars, 48.85 million U.S. dollars and 73.48 million U.S. dollars respectively. It also promises that the net profit after deducting extraordinary profits and losses of the 12 SPV from 2016 to 2018 will be no less than 7.07 million U.S. dollars, 6.96 million U.S. dollars and 6.85 million U.S. dollars respectively.
○ Far East Smarter Energy to raise RMB 3.1bln to invest in power energy storage lithium battery
------
Far East Smarter Energy Co.,Ltd. (600869.SH) proposes raise about 3.1 billion yuan by issuing shares through private placement at 9.02 yuan per share. 2.5 billion yuan will be invested in the R＆D and industrialization of high-energy density energy storage lithium battery with an annual production of 3G watt hour. 600 million yuan will be used to supplement working capital. Far East Smarter Energy is a leader in 18650 lithium battery in China. It ranks third in the world after Samsung and Panasonic in terms of lithium battery production.
TOP
○ Scimee Sci. ＆ Tech. gets nod for restructuring
------
Sichuan Scimee Sci. ＆ Tech. Co.,Ltd. (300425.SZ) gained unconditional approval from the China Securities Regulatory Commission for its restructuring.
[Financial Reports Express]
○ Rainbow Heavy Industries forecasts 5 times growth from Q1-Q3
------
Jiangsu Rainbow Heavy Industries Co., Ltd. (002483.SZ) reported a growth of 146 percent in earnings in its semi-annually report, and forecasts a growth of 5 to 5.5 times for the first three quarters.
In addition, (300459.SZ) reported a growth of 189 percent in earnings in its semi-annually report, and proposes a 20-for-10 conversion of capital surplus into shares. Guangzhou Yuetai Group Co., Ltd. (600393.SH) reported a growth of 127 percent in earnings in its semi-annually report. China CYTS Tours Holding Co., Ltd. (600138.SH) reported a growth of 92 percent in earnings in its semi-annually report. Shanghai Pudong Development Bank Co., Ltd. (600000.SH) reported a growth of 12 percent in earnings in its semi-annually report. Its non-performing loan ratio is 1.65 percent.
[Trading Trends]
○ Hengkang Medical bought by three institutions
------
The trading volume ranking list on Aug. 10 shows that Hengkang Medical Group Co., Ltd. (002219.SZ) was bought through three institutional seats with a total of 116 million yuan, accounting for 31 percent of its intraday turnover.
Comment: Institutions believe that as the company has constructed and acquired more hospitals, its business scale has gradually expanded. Especially, Wafangdian No. 3 Hospital and Xuyuu Hengshan TCM Hospital which were consolidated in 2015 have witnessed great operation, and will become new profit growth point for the company.
[Trading Alarms]
○ Redwall New Materials to conduct IPO on Aug. 11
------
Guangdong Redwall New Materials Co., Ltd. (002809.SZ) will offer shares at 22.46 yuan per share with an upper limit of 20,000 shares for each applicant. The company's PE ratio is 23 times. The company is mainy engaged concrete admixture.
TOP
○ First quantum science experimental satellite to launched soon, unveil market of hundreds of billions yuan
○ Beijing SASAC released 13th Five-Year plan, commercial and trade enterprises to revalued
○ Bohai Capital Holding invests heavily in finance and aircraft leasing, Far East Smarter Energy to invest in lithium battery
○ Scimee Sci. ＆ Tech. gets nod for restructuring, Rainbow Heavy Industries forecasts 5-5.5 times growth from Q1-Q3
[SSN Focus]
○ First quantum science experimental satellite to launched soon, unveil market of hundreds of billions yuan
------
The SSN on August 10 learnt from the Chinese Academy of Sciences that China's first quantum science experimental satellite has arrived at Jiuquan Satellite Launch Center. The satellite, which aims to build space and land integration quantum secret communication and experiment network, will be launched at the appropriate condition in the middle of the month. The satellite is able to establish a quantum optical link between two optical stations on the land with a distance of thousand kilometers. CEO of the Tongxiang Dufei Communication Technology Co., Ltd. said in an interview that after the satellite operates smoothly, China will become the first country in the world to realize quantum communications between satellite and the land. Dufei Communication Technology is negotiating with over 90 banks in Hangzhou City in respect of relevant projects of the "Shanghai-Hangzhou Line".
Comment: quantum communication is reputed as the perfect solution for information security issue. In the future, this technology is expected to be promoted in transfer of account and payment. Industrial Securities estimated that the market will hit hundreds of billions yuan in the next 10 years. Suzhou New Sea Union Telecom Technology Co., Ltd. (002089.SZ) recently indicated in an investigation that the company has involved in military special network and quantum coding cryptography business, and the company currently has sufficient orders; the actual controller of CASTECH Inc. (002222.SZ) is the Institute of Research of the Structure under the Chinese academy of Sciences. The company indicated that it pays close attention to whether its products could be widely used in quantum communications.
[SSN Selection]
○ Xu Shaoshi, head of the National Development and Reform Commission (NDRC), has recently led a team to Jilin Province to conduct research on the special subject of revitalization of the northeast China. A key task of the investigation is to review the implementation of the State Council's policies.
○ China National Coal Association (CNCA) on August 10 indicated that it will stick to de-capacity of coal; the price index of thermal coal around the Bohai Ring Area released on the same day saw the largest single week growth.
○ Five companies under the Fosun Group in aggregate hold over 156 million H shares of New China Life Insurance Co., Ltd. (01336.HK; 601336.SH), representing 5.01 shareholding of New China Life Insurance.
○ Leshi Internet Information ＆ Technology Corp., Beijing (300104.SZ) recently announced that it will spend nearly 20 billion yuan to build a super automobile factory and automobile ecological town in Deqing, Zhejiang Province.
○ As of the time of writing on the night of August 10, main contracts of New York platinum and palladium futures had increased by 2.64 percent and 5.66 percent respectively, standing the new high of more than one year.
TOP
[Industry Information]
○ Beijing SASAC releases 13th Five-Year plan, commercial and trade enterprises to revalued
------
The Beijing SASAC State-owned Economy 13th Five-Year Plan was released on August 10. According to the plan, over 80 percent state-owned capital under Beijing municipality government will be concentrating in public service, infrastructure, people's livelihood, strategic industries and etc. from the end of 2020. The plan also proposes that it will build 10 to 15 leading listed companies in their respective industries in China with strength, large scale and well-known brands, and each competitive enterprise should at least control 1 listed company, so as to highlight reform and advance restructuring and listing of enterprises.
Comment: institutions pointed out four local state-owned commercial and trade companies in Beijing, including Wangfujing Group Co., Ltd. (600859.SH), Beijing Shougang Co., Ltd. (600723.SH), Beijing Urban-Rural Trade Centre Co., Ltd. (600861.SH) and Beijing Cuiwei Tower Co., Ltd. (603123.SH) all have some movements recently. In addition, theses four companies have sufficient capital resoruces, and properties held by them are likely to appreciate after revaluation. It is expected that continuous advancement of reform will result in the recovery of valuation of such companies.
○ Chrome turns to HTML5, webgame sees new opportunity
------
Sina Technology reported on Aug. 10 that Google released the detailed plan on replacing Flash with HTML5 as the default criteria for Chrome. It is reported that HTML5 will be set as the core content of Chrome, such as the default options for games and videos, in December. In addition, Mozilla and Microsoft also followed Google's pace with the target of turning more websites to HTML5.
Comment: The HTML5 technology can reduce memory consumption and CPU utility. It better meets the criteria of pages with higher security performance. Huachuang Securities believes that the overall size of the H5 industry will reach 40 billion yuan in the following three years. It is likely to be firstly used in web games and other game industries. In terms of listed companies, Shanghai U9 game Co., Ltd. (600652.SH) has acquired equities of multiple HTML5 game R＆D companies. Ourpalm Co., Ltd. (300315.SZ) has established strategic partnership with Beijing Egret Information Technology Co., Ltd., the largest HTML5 mobile game technology solution and service provider in China.
TOP
[Announcement Interpretation]
○ Bohai Capital Holding invests heavily in finance and aircraft leasing
------
Bohai Capital Holding Co., Ltd. (000415.SZ) proposes to issue shares through private placement at 6.57 yuan per share to buy 14.77 percent equities of Sinosafe Insurance for 1.7 billion yuan and buy 737 million shares of Hong Kong Aviation Capital (HKAC) for 1.13 billion yuan. It will also buy 100 percent equities of 12 aircraft leasing asset packages (12 SPV) for 33,832,900 U.S. dollars. Meanwhile, the company also proposes to raise 2.8 billion yuan supporting fund by issuing shares through private placement at no less than 6.57 yuan per share.
The company will take wholly control of HKAC after the deal. HKAC promises that its net profit after deducting extraordinary profits and losses from 2016 to 2018 will be no less than 56.96 million U.S. dollars, 48.85 million U.S. dollars and 73.48 million U.S. dollars respectively. It also promises that the net profit after deducting extraordinary profits and losses of the 12 SPV from 2016 to 2018 will be no less than 7.07 million U.S. dollars, 6.96 million U.S. dollars and 6.85 million U.S. dollars respectively.
○ Far East Smarter Energy to raise RMB 3.1bln to invest in power energy storage lithium battery
------
Far East Smarter Energy Co.,Ltd. (600869.SH) proposes raise about 3.1 billion yuan by issuing shares through private placement at 9.02 yuan per share. 2.5 billion yuan will be invested in the R＆D and industrialization of high-energy density energy storage lithium battery with an annual production of 3G watt hour. 600 million yuan will be used to supplement working capital. Far East Smarter Energy is a leader in 18650 lithium battery in China. It ranks third in the world after Samsung and Panasonic in terms of lithium battery production.
TOP
○ Scimee Sci. ＆ Tech. gets nod for restructuring
------
Sichuan Scimee Sci. ＆ Tech. Co.,Ltd. (300425.SZ) gained unconditional approval from the China Securities Regulatory Commission for its restructuring.
[Financial Reports Express]
○ Rainbow Heavy Industries forecasts 5 times growth from Q1-Q3
------
Jiangsu Rainbow Heavy Industries Co., Ltd. (002483.SZ) reported a growth of 146 percent in earnings in its semi-annually report, and forecasts a growth of 5 to 5.5 times for the first three quarters.
In addition, (300459.SZ) reported a growth of 189 percent in earnings in its semi-annually report, and proposes a 20-for-10 conversion of capital surplus into shares. Guangzhou Yuetai Group Co., Ltd. (600393.SH) reported a growth of 127 percent in earnings in its semi-annually report. China CYTS Tours Holding Co., Ltd. (600138.SH) reported a growth of 92 percent in earnings in its semi-annually report. Shanghai Pudong Development Bank Co., Ltd. (600000.SH) reported a growth of 12 percent in earnings in its semi-annually report. Its non-performing loan ratio is 1.65 percent.
[Trading Trends]
○ Hengkang Medical bought by three institutions
------
The trading volume ranking list on Aug. 10 shows that Hengkang Medical Group Co., Ltd. (002219.SZ) was bought through three institutional seats with a total of 116 million yuan, accounting for 31 percent of its intraday turnover.
Comment: Institutions believe that as the company has constructed and acquired more hospitals, its business scale has gradually expanded. Especially, Wafangdian No. 3 Hospital and Xuyuu Hengshan TCM Hospital which were consolidated in 2015 have witnessed great operation, and will become new profit growth point for the company.
[Trading Alarms]
○ Redwall New Materials to conduct IPO on Aug. 11
------
Guangdong Redwall New Materials Co., Ltd. (002809.SZ) will offer shares at 22.46 yuan per share with an upper limit of 20,000 shares for each applicant. The company's PE ratio is 23 times. The company is mainy engaged concrete admixture.
TOP
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