[Today's Guide]
○ 13th Five-year Plan on sports lottery development released to support channel and lottery innovation
○ Aliyun maintains strong growth, domestic cloud computing market to surge
○ MengDian HuaNeng Thermal Power to develop wind power through private placement, MIG Unmobi to acquire digital marketing assets
○ Chuying Agro-Pastoral Group expects substantial growth in first three quarters, Gpro Titanium Industry raises prices of titanium dioxide products
[SSN Focus]
○ 13th Five-year Plan on sports lottery development released to support channel and lottery innovation
------
The General Administration of Sport (GAS) announced on Aug. 11 that the 13th Five-year Plan on the Development of Sports Lotteries was officially released recently, which systematically proposes key tasks in six aspects, including the fostering of products and the establishment of a multi-layered channel system. The Plan also explained some matters of high concern in the lottery market, including expanding the size of physical channels and stores and facilitating the convenience for buyers. It shall promote to cover domestic sports matches in the principles of "steady, orderly and healthy development".
Comment: The sales volume of sports lotteries maintained an annual average growth of 19 percent during the 12th Five-year Plan period. The innovation in channels and lottery varieties in the future will facilitate the rapid development of the industry. Institutes pointed out that "Jiangsu Mobile Games Lottery", the only pilot local lottery games, recorded a sales volume of 540 million yuan in one year after being introduced. The sales volume is expected to reach 1 to 1.2 billion yuan this year. Hongbo Co., Ltd. (002229.SZ) has signed a cooperation agreement with Fujian Sports Lottery Administration Center. China Sports Industry Group Co., Ltd. (600158.SH) is the only listed company under the GAS. Many institutes are rosy about the prospects of the lottery business of the above companies.
[SSN Selection]
○ The National Development and Reform Commission (NDRC) pointed out that the progress of de-capacity in the coal industry lagged behind in the first seven months, requiring all regions striving to fully complete the annual tasks by end-November.
○ The central bank made net capital injections in the open market for five consecutive trading days. Insiders estimate that the central bank will adopt various policy tools to stabilize capitals.
○ Chinese-funded securities companies stocks drove the strong performance of the Hong Kong stock market on Aug. 11. The AH Premium Index plunged by over 1 percent to new low in the year.
○ The World Gold Council indicated that the global demand for gold ETFs hit a new high in the first half. Statistics show the six commodity ETF funds have been submitted in China.
○ Suzhou City introduced policies on the restriction of housing purchase on Aug. 11. Nanjing also introduced policies on the restriction of loans on the same day.
TOP
[Industry Information]
○ Aliyun maintains strong growth, domestic cloud computing market to surge
------
Alibaba Group released the performance for the first quarter of the 2017 financial year on Aug. 11. The Aliyun business maintained strong growth and the business revenue reached 1,243 million yuan, representing an increase of 156 percent year on year. Aliyun has been maintaining a double-digit growth since the second quarter of last year. The financial report also disclosed that the number of paid users of clouding computing has significantly increased to 577,000 from that of the same period of last year. Morgan Stanley believes that as a new business infrastructure, Aliyun will continue to maintain high growth and will be the next growth pole of Alibaba.
Comment: Institutes believe that currently, the domestic public cloud business has been growing steadily, the orders for private cloud business are increasing and the demand for cloud platforms of three major industries represented by operators, financial industry and government is surging. The industry will surge on the whole. Among listed companies, Beijing Sinnet Technology Co., Ltd. (300383.SZ) announced that it has obtained the authorization for the cloud computing businesses of AWS under Amazon in China. Shanghai DragonNet Technology Co., Ltd. (300245.SZ) has mature products and benchmark projects in the private cloud platform industry.
TOP
[Announcement Interpretation]
○ MengDian HuaNeng Thermal Power to raise RMB1.9 bln through private placement to develop wind power
------
Inner Mongolia MengDian HuaNeng Thermal Power Corporation Limited (600863.SH) proposes to raise 1,967 million yuan by issuing 700 million shares at 2.81 yuan per share through private placement. The proceeds will be used to acquire 81.25 percent equities of Inner Mongolia North Longyuan Wind Power Co., Ltd. held by its controlling shareholder. The listed company will fully control of North Longyuan Wind Power after the completion. North Longyuan Wind Power is mainly engaged in wind power generation and it recorded a net profit of 98.28 million yuan in 2015.
○ MIG Unmobi to acquire digital marketing assets with RMB1 bln
------
MIG Unmobi Technology Inc. (300242.SZ) plans to acquire 86.50 percent equities of Beijing Xiaozi Technology Co., Ltd. and 90 percent equities of Wuxi Online and Offline Network Technology Co., Ltd. with 600 million yuan and 400 million yuan, respectively, to fully control the two companies. It will pay 60 percent of the total consideration by issuing shares at 31.74 yuan per share. Meanwhile, the company intends to raise a supporting fund of 400 million yuan by issuing shares at the same price through private placement to Zhou Jianlin, the controlling shareholder of the company and Huaxia Life Insurance Co., Ltd.
The two target companies are principally engaged in digital marketing. Xiaozi Technology is specialized in fine data analysis and the design and establishment of platforms for mobile Internet advertisements. The original shareholders committed that net profit will be no less than 50 million yuan, 65 million yuan and 85 million yuan from 2016 to 2018. Online and Offline Network Technology enjoys strong operation capacity in mobile information services. The original shareholders committed that net profit will be no less than 35 million yuan, 46 million yuan and 60 million yuan from 2016 to 2018.
○ Baosi Energy Equipment to buy STEP Electric Corporation, expanding, expanding precision parts manufacturing
------
Ningbo Baosi Energy Equipment Co., Ltd. (300441.SZ) proposes to buy the entire shareholding of Shanghai STEP Electric Corporation at the valuation of 270 million yuan, which will be satisfied by additional issuance through private placement and cash payment. At the same time, the company will raise supporting fund of about 140 million yuan through private placement, which will be subscribed by the assets management plan proposed to be established. The issuing prices of the above private placements are all 18.9 yuan per share.
STEP Electric Corporation is primarily engaged in worm and helical gear transmission integrated solution applied to automobile manufacturing, medical apparatus and instruments and smart home sectors. The company's net profits in 2014, 2015 and the first half of 2016 were 7,696,000 yuan, 9,370,000 yuan and 8,750,000 yuan respectively. Baosi Energy Equipment will tap into the car making industry as a middle-high end precision transmission parts supplier after the acquisition.
TOP
[Financial Reports Express]
○ Chuying Agro-Pastoral Group expects substantial growth in first three quarters
------
Chuying Agro-Pastoral Group Co., ltd. (002477.SZ) expects 8 times performance growth in the interim report, and the first three quarters as a whole is expected to see 5 to 6 times growth. Henan Huaying Agricultural Development Co., Ltd. (002321.SZ) expects 2 times performance growth in the interim report, and the first three quarters will see 2 to 3 times growth. Cpt Technology (group) Co., ltd. (000536.SZ) expects 10 times performance growth in the interim report, and the first three quarters will see 5 times growth.
Xcmg Construction Machinery Co., ltd. (000425.SZ) reported 12 times performance growth in the interim report; Shenzhen Jiawei Photovoltaic Lighting Co., Ltd. (300317.SZ) reported 19 times performance growth in the interim report; AVIC Electromechanical Systems Co., Ltd. (002013.SZ) reported more than 5 times growth in the interim report.
[News Tracking]
○ Gpro Titanium Industry raises prices of titanium dioxide products
------
Nanjing Taibai Chemical Co., Ltd., wholly owned subsidiary of Jilin Gpro Titanium Industry Co., Ltd. (000545.SZ), decided to raise the sale prices of all types of anatase titanium dioxide. Specifically, the domestic sale price will be increased by 300 yuan/ton, and the export price will be increased by 50 dollars/ton. Global giant Huntsman on August 10 announced that it will raise the price of titanium dioxide pigment sold around the globe. SSN has recently frequently reported the price adjustments of the titanium dioxide industry.
○ State-owned capital increased holding in Langfang Development
------
Langfang Holding, a state-owned enterprise and shareholder of Langfang Development Co., Ltd. (600149.SH), increased its shareholding in the listed company to 15.3 percent. In the future, the company may continue to increase shareholding in the listed company.
[Data Speaks]
○ Shenzhen-Hong Kong Stock Connect comes closer, large cap leading enterprises to favored by market
------
Media reported that the China Securities Regularity Commission (CSRC) has established Shenzhen-Hong Kong stock connect special work team. SSN's statistics show that all together 18 stocks recorded net inflow from the Northbound trading of Shanghai-Hong Kong Stock Connect, which are distributed in liquor, banking, secruties and home appliance and automobile industry. And most of these companies are leading enterprises in the industry. The above trading style is expected to be replicated after the Shenzhen-Hong Kong Stock Connect is launched.
As for the liquor industry, the total market capitalization of Wuliangye Yibin Co., ltd. (000858.SZ), Jiangsu Yanghe Brewery Joint-Stock Co., Ltd. (002304.SZ) ranks the second and the third. And their latest PE ratios are all below 20 tines, lower than the average valuation of the industry. Guosen Securities (002736.SZ) and Guangfa Securities (000776.SZ) are listed securities companies on the Shenzhen bourse with large market capitalization. Midea Group Co., ltd. (000333.SZ) and Gree Electric Appliances,Inc.of Zhuhai (000651.SZ) are top two listed companies in the home appliance industry with the largest market capitalization, their PE ratios are 13 times and 8 times respectively, and the dividend rates are 2.94 percent and 8.47 percent. in the pharmaceutical industry, Yunnan Baiyao Group Co., Ltd. (000538.SZ) and Dong-e-e-jiao Co., Ltd. (000423.SZ) are representatives.
[Trading Trends]
○ Zhejiang Shibao bought through institutional seats
------
The trading volume ranking list on August 11 shows that Zhejiang Shibao Company Limited (002703.SZ) was bought by three institutional seats with a total of 257 million yuan, accounting for 33 percent of intraday trading turnover.
Comment: Zhejiang Shibao was among the first in China to independently develop automobile hydraulic power steering system and electric power steering system. It has already become the first level supplier to many reputable automobile groups. The company indicated at the interactive platform that it has already successfully developed new generation of intelligent steering products, which could be used for unmanned driving.
[Trading Alarms]
○ Two new shares offer for subscription on August 10
------
Shenzhen Tongyi Industry Co., Ltd. (300538.SZ) will offer for subscription at 15.83 yuan per share. The PE ratio is 23 times, and the upper limit of subscription is 14,000 shares. The company is primarily engaged in the distribution of chemical and electronic materials. Jiangsu Flower King Horticulture Co., Ltd. (732007.SZ) will offer for subscription at 11.66 yuan per share. The PE ratio is 23 times. The upper limit of subscription is 13,000 shares. The company is primarily engaged landscaping projects.
TOP
○ 13th Five-year Plan on sports lottery development released to support channel and lottery innovation
○ Aliyun maintains strong growth, domestic cloud computing market to surge
○ MengDian HuaNeng Thermal Power to develop wind power through private placement, MIG Unmobi to acquire digital marketing assets
○ Chuying Agro-Pastoral Group expects substantial growth in first three quarters, Gpro Titanium Industry raises prices of titanium dioxide products
[SSN Focus]
○ 13th Five-year Plan on sports lottery development released to support channel and lottery innovation
------
The General Administration of Sport (GAS) announced on Aug. 11 that the 13th Five-year Plan on the Development of Sports Lotteries was officially released recently, which systematically proposes key tasks in six aspects, including the fostering of products and the establishment of a multi-layered channel system. The Plan also explained some matters of high concern in the lottery market, including expanding the size of physical channels and stores and facilitating the convenience for buyers. It shall promote to cover domestic sports matches in the principles of "steady, orderly and healthy development".
Comment: The sales volume of sports lotteries maintained an annual average growth of 19 percent during the 12th Five-year Plan period. The innovation in channels and lottery varieties in the future will facilitate the rapid development of the industry. Institutes pointed out that "Jiangsu Mobile Games Lottery", the only pilot local lottery games, recorded a sales volume of 540 million yuan in one year after being introduced. The sales volume is expected to reach 1 to 1.2 billion yuan this year. Hongbo Co., Ltd. (002229.SZ) has signed a cooperation agreement with Fujian Sports Lottery Administration Center. China Sports Industry Group Co., Ltd. (600158.SH) is the only listed company under the GAS. Many institutes are rosy about the prospects of the lottery business of the above companies.
[SSN Selection]
○ The National Development and Reform Commission (NDRC) pointed out that the progress of de-capacity in the coal industry lagged behind in the first seven months, requiring all regions striving to fully complete the annual tasks by end-November.
○ The central bank made net capital injections in the open market for five consecutive trading days. Insiders estimate that the central bank will adopt various policy tools to stabilize capitals.
○ Chinese-funded securities companies stocks drove the strong performance of the Hong Kong stock market on Aug. 11. The AH Premium Index plunged by over 1 percent to new low in the year.
○ The World Gold Council indicated that the global demand for gold ETFs hit a new high in the first half. Statistics show the six commodity ETF funds have been submitted in China.
○ Suzhou City introduced policies on the restriction of housing purchase on Aug. 11. Nanjing also introduced policies on the restriction of loans on the same day.
TOP
[Industry Information]
○ Aliyun maintains strong growth, domestic cloud computing market to surge
------
Alibaba Group released the performance for the first quarter of the 2017 financial year on Aug. 11. The Aliyun business maintained strong growth and the business revenue reached 1,243 million yuan, representing an increase of 156 percent year on year. Aliyun has been maintaining a double-digit growth since the second quarter of last year. The financial report also disclosed that the number of paid users of clouding computing has significantly increased to 577,000 from that of the same period of last year. Morgan Stanley believes that as a new business infrastructure, Aliyun will continue to maintain high growth and will be the next growth pole of Alibaba.
Comment: Institutes believe that currently, the domestic public cloud business has been growing steadily, the orders for private cloud business are increasing and the demand for cloud platforms of three major industries represented by operators, financial industry and government is surging. The industry will surge on the whole. Among listed companies, Beijing Sinnet Technology Co., Ltd. (300383.SZ) announced that it has obtained the authorization for the cloud computing businesses of AWS under Amazon in China. Shanghai DragonNet Technology Co., Ltd. (300245.SZ) has mature products and benchmark projects in the private cloud platform industry.
TOP
[Announcement Interpretation]
○ MengDian HuaNeng Thermal Power to raise RMB1.9 bln through private placement to develop wind power
------
Inner Mongolia MengDian HuaNeng Thermal Power Corporation Limited (600863.SH) proposes to raise 1,967 million yuan by issuing 700 million shares at 2.81 yuan per share through private placement. The proceeds will be used to acquire 81.25 percent equities of Inner Mongolia North Longyuan Wind Power Co., Ltd. held by its controlling shareholder. The listed company will fully control of North Longyuan Wind Power after the completion. North Longyuan Wind Power is mainly engaged in wind power generation and it recorded a net profit of 98.28 million yuan in 2015.
○ MIG Unmobi to acquire digital marketing assets with RMB1 bln
------
MIG Unmobi Technology Inc. (300242.SZ) plans to acquire 86.50 percent equities of Beijing Xiaozi Technology Co., Ltd. and 90 percent equities of Wuxi Online and Offline Network Technology Co., Ltd. with 600 million yuan and 400 million yuan, respectively, to fully control the two companies. It will pay 60 percent of the total consideration by issuing shares at 31.74 yuan per share. Meanwhile, the company intends to raise a supporting fund of 400 million yuan by issuing shares at the same price through private placement to Zhou Jianlin, the controlling shareholder of the company and Huaxia Life Insurance Co., Ltd.
The two target companies are principally engaged in digital marketing. Xiaozi Technology is specialized in fine data analysis and the design and establishment of platforms for mobile Internet advertisements. The original shareholders committed that net profit will be no less than 50 million yuan, 65 million yuan and 85 million yuan from 2016 to 2018. Online and Offline Network Technology enjoys strong operation capacity in mobile information services. The original shareholders committed that net profit will be no less than 35 million yuan, 46 million yuan and 60 million yuan from 2016 to 2018.
○ Baosi Energy Equipment to buy STEP Electric Corporation, expanding, expanding precision parts manufacturing
------
Ningbo Baosi Energy Equipment Co., Ltd. (300441.SZ) proposes to buy the entire shareholding of Shanghai STEP Electric Corporation at the valuation of 270 million yuan, which will be satisfied by additional issuance through private placement and cash payment. At the same time, the company will raise supporting fund of about 140 million yuan through private placement, which will be subscribed by the assets management plan proposed to be established. The issuing prices of the above private placements are all 18.9 yuan per share.
STEP Electric Corporation is primarily engaged in worm and helical gear transmission integrated solution applied to automobile manufacturing, medical apparatus and instruments and smart home sectors. The company's net profits in 2014, 2015 and the first half of 2016 were 7,696,000 yuan, 9,370,000 yuan and 8,750,000 yuan respectively. Baosi Energy Equipment will tap into the car making industry as a middle-high end precision transmission parts supplier after the acquisition.
TOP
[Financial Reports Express]
○ Chuying Agro-Pastoral Group expects substantial growth in first three quarters
------
Chuying Agro-Pastoral Group Co., ltd. (002477.SZ) expects 8 times performance growth in the interim report, and the first three quarters as a whole is expected to see 5 to 6 times growth. Henan Huaying Agricultural Development Co., Ltd. (002321.SZ) expects 2 times performance growth in the interim report, and the first three quarters will see 2 to 3 times growth. Cpt Technology (group) Co., ltd. (000536.SZ) expects 10 times performance growth in the interim report, and the first three quarters will see 5 times growth.
Xcmg Construction Machinery Co., ltd. (000425.SZ) reported 12 times performance growth in the interim report; Shenzhen Jiawei Photovoltaic Lighting Co., Ltd. (300317.SZ) reported 19 times performance growth in the interim report; AVIC Electromechanical Systems Co., Ltd. (002013.SZ) reported more than 5 times growth in the interim report.
[News Tracking]
○ Gpro Titanium Industry raises prices of titanium dioxide products
------
Nanjing Taibai Chemical Co., Ltd., wholly owned subsidiary of Jilin Gpro Titanium Industry Co., Ltd. (000545.SZ), decided to raise the sale prices of all types of anatase titanium dioxide. Specifically, the domestic sale price will be increased by 300 yuan/ton, and the export price will be increased by 50 dollars/ton. Global giant Huntsman on August 10 announced that it will raise the price of titanium dioxide pigment sold around the globe. SSN has recently frequently reported the price adjustments of the titanium dioxide industry.
○ State-owned capital increased holding in Langfang Development
------
Langfang Holding, a state-owned enterprise and shareholder of Langfang Development Co., Ltd. (600149.SH), increased its shareholding in the listed company to 15.3 percent. In the future, the company may continue to increase shareholding in the listed company.
[Data Speaks]
○ Shenzhen-Hong Kong Stock Connect comes closer, large cap leading enterprises to favored by market
------
Media reported that the China Securities Regularity Commission (CSRC) has established Shenzhen-Hong Kong stock connect special work team. SSN's statistics show that all together 18 stocks recorded net inflow from the Northbound trading of Shanghai-Hong Kong Stock Connect, which are distributed in liquor, banking, secruties and home appliance and automobile industry. And most of these companies are leading enterprises in the industry. The above trading style is expected to be replicated after the Shenzhen-Hong Kong Stock Connect is launched.
As for the liquor industry, the total market capitalization of Wuliangye Yibin Co., ltd. (000858.SZ), Jiangsu Yanghe Brewery Joint-Stock Co., Ltd. (002304.SZ) ranks the second and the third. And their latest PE ratios are all below 20 tines, lower than the average valuation of the industry. Guosen Securities (002736.SZ) and Guangfa Securities (000776.SZ) are listed securities companies on the Shenzhen bourse with large market capitalization. Midea Group Co., ltd. (000333.SZ) and Gree Electric Appliances,Inc.of Zhuhai (000651.SZ) are top two listed companies in the home appliance industry with the largest market capitalization, their PE ratios are 13 times and 8 times respectively, and the dividend rates are 2.94 percent and 8.47 percent. in the pharmaceutical industry, Yunnan Baiyao Group Co., Ltd. (000538.SZ) and Dong-e-e-jiao Co., Ltd. (000423.SZ) are representatives.
[Trading Trends]
○ Zhejiang Shibao bought through institutional seats
------
The trading volume ranking list on August 11 shows that Zhejiang Shibao Company Limited (002703.SZ) was bought by three institutional seats with a total of 257 million yuan, accounting for 33 percent of intraday trading turnover.
Comment: Zhejiang Shibao was among the first in China to independently develop automobile hydraulic power steering system and electric power steering system. It has already become the first level supplier to many reputable automobile groups. The company indicated at the interactive platform that it has already successfully developed new generation of intelligent steering products, which could be used for unmanned driving.
[Trading Alarms]
○ Two new shares offer for subscription on August 10
------
Shenzhen Tongyi Industry Co., Ltd. (300538.SZ) will offer for subscription at 15.83 yuan per share. The PE ratio is 23 times, and the upper limit of subscription is 14,000 shares. The company is primarily engaged in the distribution of chemical and electronic materials. Jiangsu Flower King Horticulture Co., Ltd. (732007.SZ) will offer for subscription at 11.66 yuan per share. The PE ratio is 23 times. The upper limit of subscription is 13,000 shares. The company is primarily engaged landscaping projects.
TOP
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