[Today's Guide]
○Conference on promoting development of Belt and Road Initiative kicks off requiring more detailed polices
○Cement price in many places hikes, Intel introduces product integrating reality
○Hejin Holding to raise RMB360 mln to transform to dental medical treatment, Xu Maodong, head of Galaxy Internet, steps in Busen Garments
○Do-fluoride Chemicals predicts great performance growth for Q1, Q2 and Q3, Vtr Bio-Tech proposed a high share conversion and dividend
[SSN Focus]
○Conference on promoting development of Belt and Road Initiative kicks off requiring more detailed polices
------
President Xi Jinping made an important speech at a work conference of promoting development of "Belt and Road Initiative" on Aug. 17. He required further studying and introducing detailed policies and measures to advance development of the Belt and Road Initiative, innovating application ways, improving supporting service, and supporting some strategic and superior projects such as interconnection of infrastructure, exploitation and utilization of energy resource, construction of economic and trade industrial cooperation zone and R＆D of core industrial technologies. Secretaries of provincial (or district) Party Committee from Fujian, Xinjiang, Guangdong and Shaanxi, and heads from China Communications Construction Group and Holley Group also made statement at the conference.
Comment: Institutions believe that the Belt and Road Initiative can not only propel the infrastructure construction of regions along China's several major routes but also bring opportunity to neighboring countries which are involved in the initiative. The Silk Road Economic Belt pays more attention to land route and energy network, while the 21st Century Maritime Silk Road focuses on safety of harbor facilities and energy source import. Building material enterprises actively making deployment in overseas market, energy enterprises which take lead in cooperating with overseas petroleum and gas enterprises, and enterprises along major harbor cities will benefit from it.
○Pilot of SOEs employee shareholding plan expected to launched faster
------
The State-owned Assets Supervision and Administration Commission (SASAC) announced on Aug. 17 that five central state-owned enterprises (SOEs) including AVIC Engine Group Co., Ltd. will be included in pilot of building standard board of directors, which will drive the central SOEs to accelerate work on developing standard board of directors. The SASAC previously released ten reform pilots in February, and will unveil pilot of state-owned asset investment companies, pilot of acquisition and reorganization of central SOEs and pilot of information disclosure of SOEs. Institutions predict that pilot of SOEs employee shareholding plan is expected to be launched soon based on the requirements of the ten reform pilots.
[SSN Selection]
○As introduced by the Ministry of Commerce, e-retailing sales in rural regions grew by 13.48 percent in the second quarter when compared with that in the first quarter and its proportion in the national e-retailing sales continues to move up.
○Deputy Director from Shanghai Economic and Informatization Committee indicated on Aug. 17 that Shanghai Municipality is formulating suggestions on big data development. Investment funds of big data industry have raised about 1 billion yuan.
○Net profit of Tencent increased by 47 percent year on year in the second quarter, outpacing market expectation, and revenues from mobile game business hiked by more than 100 percent.
○China Three Gorges Corporation transferred its shareholdings in commercial bank for two times in recent week. Stripping off non-principal business may intend to practice state-owned enterprise reform.
○Shenzhen Textile (Holdings) Co., Ltd. (00045.SZ) conforms that it will continue to suspend trading due to mulling over major asset reorganization. The company's actual controller is the State-owned Assets Supervision and Administration Commission of Shenzhen city.
TOP
[Industry Information]
○Cement price in many places hikes due to output restriction boosting demand
------
SSN learns that cement price continues to rise in many places due to output restriction by enterprises and start of downstream infrastructure construction project. According to statistics from www.baiinfo.com, cement price rose by 10-20 yuan per ton in Wuhu and Tongling cities, Anhui province. Quotation of P.O 42.5 in bulk is 260 yuan per ton and 280 yuan per ton in Huhu and Tongling respectively. In addition, cement price in Fuzhou city hit the bottom and rebounded by 10 yuan per ton.
Comment: Research report from securities traders indicates that de-capacity and output restriction boosted price to go up in many places in mid-August. The price will keep increasing stably with demand hiking in September. Profit of cement enterprises is expected to see improvement. In terms of listed companies, Tangshan Jidong Cement Co., Ltd. (000401.SZ), Huaxin Cement Co., Ltd. (600801.SH) and other firms draw attentions from several securities companies.
○Intel introduces product integrating reality, it expected to become new direction of VR development
------
Intel CEO Brian Krzanich displays a Project Alloy virtual reality (VR) headset during a keynote speech at the 2016 Intel Developers Forum (IDF). This product integrates real technology. Even though in virtual environment, users can interact with the virtual world directly through their own hands instead of sensor and controller of traditional VR. Intel also announces that it will cooperate with Microsoft in VR field.
Comment: Integrating with reality is able to provide more complete experience, which is expected to become a new direction for VR development. The key to this technology rests in that the real 3D camera of Intel allows the equipment realize gesture recognition and can track space information around users so as to achieve positioning. Lianchuang Electronic Technology Co., Ltd. (002036.SZ) is engaged in producing module of high-resolution camera and components of augmented reality (AR) equipment are expected to see shipment in limited quantities in September. MEMS camera of Shenzhen O-film Tech Co., Ltd. (002456.SZ) can be applied in VR and AR fields.
TOP
[Announcement Interpretation]
○Hejin Holding to raise RMB360 mln to transform to dental medical treatment
------
Shenyang Hejin Holding Co., Ltd. (000633.SZ) proposes to issue 43.50 million shares through private placement to raise 360 million yuan, so as to acquire the 100 percent equities of Xiaoyuan Dental, and construction Niaochao clinic and medical information system.
Comment: Ultratek materials business of the listed company is constantly depressed, with a loss of 27.33 million yuan in semi-annual report and also expected losses of 39 million to 32 million yuan for the first three quarters. It will acquire the 100 percent equities of Xiaoyuan Dental, which is a significant step for its strategic transformation. After restructuring, it will choose an opportunity to establish new dental clinic to expand market extension scope.
○Xu Maodong, head of Galaxy Internet, steps in Busen Garments
------
The common partner and limited partner of Shanghai Ruizhi Assets Management Partnership Co., Ltd., who is the controlling shareholder of Zhejiang Busen Garments Co., Ltd. (002569.SZ), transferred their shareholdings to Galaxy Yingyong and Lhasa Xingzhuo Enterprise Co., Ltd. respectively. Galaxy Yingyong transferred 1.03 percent shareholdings for 30 million yuan (to become common partner), and Lhasa Xingzhuo transferred 93.99 percent shareholdings for around 982 million yuan (to become limited partner).
Currently, Galaxy Yingyong and Lhasa Xingzhuo are both held by Xu Maodong and Xu Haohan. Xu Maodong becomes the new actual controller of the listed company, and indicates that he will "carry out effective integration on high-quality assets when the conditions are matured to take advantage of the listed company" in the future. It learnt that Xu Maodong owns enterprises, like Galaxy Internet, which are good at integrating sub-industries of internet to form an entrepreneurship ecosphere.
○Natural person Wen Xitang bought shares of China National Software ＆ Service to over 5 pct
------
China National Software ＆ Service Company Limited (600536.SH) announced that, up to August 17, the natural person Wen Xitang has held 26,309,500 shares of the listed company in total, accounting for 5.32 percent of the total equity.
○Restructuring of Baotou Beifang Chuangye and CSSC Steel Structure Engineering approved
------
The restructuring of Baotou Beifang Chuangye Co., Ltd. (600967.SH) has been unconditionally approved by China Securities Regulatory Commission; and CSSC Steel Structure Engineering Co., Ltd. (600072.SH) has been conditionally approved.
○Longji Machinery and Longquan Pipeline Engineering to expand main businesses through private placement
------
Shandong Longji Machinery Co., Ltd. (002363.SZ) plans to issue 53.69 million shares through private placement with 11.49 yuan per share as the bottom price, and the raised 617 million yuan will be invested in high-end brake disc reorganization and expansion project and automobile brake system test center project.
Shandong Longquan Pipeline Engineering Co., Ltd. (002671.SZ) proposes to issue 30.36 million shares through private placement with 11.42 yuan per share as the bottom price, and the raised 347 million yuan will be invested in PCCP production line construction project of its Xinjiang branch, pre-stress steel cylinder ＆ concrete cylinder project of its Jilin branch with the annual production of 70 km, and liquidity supplement.
TOP
[Financial Reports Express]
○Do-fluoride Chemicals predicts great performance growth for Q1, Q2 and Q3
------
The semi-annual performance of Do-fluoride Chemicals Co., Ltd. (002407.SZ) increased by 25 times, with 12 times for its expectation of the first three quarters; it proposes to increased investment in Hebei Red Star Automobile Manufacturing Co., Ltd. with 200 billion yuan. Performance of Zhejiang Founder Motor Co., Ltd. (002196.SZ) increased four times in its semi-annual report, with three times as forecast for the first three quarters. The figure was 26 times for Jiangsu Huahong Technology Co., Ltd. (002645.SZ), with great growth forecast for the first three quarters from losses. The figures for Guangxi Wuzhou Communications Co., Ltd. (600368.SH) are semi-annual growth of 110 percent and forecast growth of 350 percent and 400 percent for the first three quarters. Shanghai Maling Aquarius Co., Ltd. (600073.SH) announced a growth rate of 170 percent in the semi-annual report, with forecast growth of 100 percent and 150 percent for the first three quarters.
○Vtr Bio-Tech proposed a high share conversion and dividend
------
Chen Shaomei, actual controller and chairman of Guangdong Vtr Bio-Tech Co., Ltd. (300381.SZ), proposed a 20-for-10 conversion of capital surplus into shares combined with 1 yuan dividend for every 10 shares according to its semi-annual report.
[Trading Trends]
○National teams increased shareholdings in some individual stocks of bank and electrical power sectors in Q2
------
Based on Wind statistics, up to August 17, in the ten largest shareholders list of 643 listed companies having disclosed semi-annual report, national teams have involved in 263 listed companies. The national teams hold shares of 124.4 billion yuan. In the second quarter, the national teams sold out nine stocks, reduced shareholdings in 13 stocks, and increased shareholdings in 14 ones.
In terms of those individual shares increasingly bought by national teams, the number of increased shareholdings of Hua Xia Bank Co., Ltd. (600015.SH), Huaneng Power International, Inc. (600011.SH), Zhejiang Zheneng Electric Power Co., Ltd. (600023.SH), Changjiang Securities Company Limited (000783.SZ) and Tasly Pharmaceutical Group Co., Ltd. (600535.SH) rank high. Referring to industries, national teams mainly increased shareholdings in sectors, such as bank, electrical power, securities, medicine and consumption. It is worth of noting that, shareholders increasing shareholdings or carrying out private placement may cause the national teams to be out of the first ten list, which could not reflect in the regular reports.
TOP
○Conference on promoting development of Belt and Road Initiative kicks off requiring more detailed polices
○Cement price in many places hikes, Intel introduces product integrating reality
○Hejin Holding to raise RMB360 mln to transform to dental medical treatment, Xu Maodong, head of Galaxy Internet, steps in Busen Garments
○Do-fluoride Chemicals predicts great performance growth for Q1, Q2 and Q3, Vtr Bio-Tech proposed a high share conversion and dividend
[SSN Focus]
○Conference on promoting development of Belt and Road Initiative kicks off requiring more detailed polices
------
President Xi Jinping made an important speech at a work conference of promoting development of "Belt and Road Initiative" on Aug. 17. He required further studying and introducing detailed policies and measures to advance development of the Belt and Road Initiative, innovating application ways, improving supporting service, and supporting some strategic and superior projects such as interconnection of infrastructure, exploitation and utilization of energy resource, construction of economic and trade industrial cooperation zone and R＆D of core industrial technologies. Secretaries of provincial (or district) Party Committee from Fujian, Xinjiang, Guangdong and Shaanxi, and heads from China Communications Construction Group and Holley Group also made statement at the conference.
Comment: Institutions believe that the Belt and Road Initiative can not only propel the infrastructure construction of regions along China's several major routes but also bring opportunity to neighboring countries which are involved in the initiative. The Silk Road Economic Belt pays more attention to land route and energy network, while the 21st Century Maritime Silk Road focuses on safety of harbor facilities and energy source import. Building material enterprises actively making deployment in overseas market, energy enterprises which take lead in cooperating with overseas petroleum and gas enterprises, and enterprises along major harbor cities will benefit from it.
○Pilot of SOEs employee shareholding plan expected to launched faster
------
The State-owned Assets Supervision and Administration Commission (SASAC) announced on Aug. 17 that five central state-owned enterprises (SOEs) including AVIC Engine Group Co., Ltd. will be included in pilot of building standard board of directors, which will drive the central SOEs to accelerate work on developing standard board of directors. The SASAC previously released ten reform pilots in February, and will unveil pilot of state-owned asset investment companies, pilot of acquisition and reorganization of central SOEs and pilot of information disclosure of SOEs. Institutions predict that pilot of SOEs employee shareholding plan is expected to be launched soon based on the requirements of the ten reform pilots.
[SSN Selection]
○As introduced by the Ministry of Commerce, e-retailing sales in rural regions grew by 13.48 percent in the second quarter when compared with that in the first quarter and its proportion in the national e-retailing sales continues to move up.
○Deputy Director from Shanghai Economic and Informatization Committee indicated on Aug. 17 that Shanghai Municipality is formulating suggestions on big data development. Investment funds of big data industry have raised about 1 billion yuan.
○Net profit of Tencent increased by 47 percent year on year in the second quarter, outpacing market expectation, and revenues from mobile game business hiked by more than 100 percent.
○China Three Gorges Corporation transferred its shareholdings in commercial bank for two times in recent week. Stripping off non-principal business may intend to practice state-owned enterprise reform.
○Shenzhen Textile (Holdings) Co., Ltd. (00045.SZ) conforms that it will continue to suspend trading due to mulling over major asset reorganization. The company's actual controller is the State-owned Assets Supervision and Administration Commission of Shenzhen city.
TOP
[Industry Information]
○Cement price in many places hikes due to output restriction boosting demand
------
SSN learns that cement price continues to rise in many places due to output restriction by enterprises and start of downstream infrastructure construction project. According to statistics from www.baiinfo.com, cement price rose by 10-20 yuan per ton in Wuhu and Tongling cities, Anhui province. Quotation of P.O 42.5 in bulk is 260 yuan per ton and 280 yuan per ton in Huhu and Tongling respectively. In addition, cement price in Fuzhou city hit the bottom and rebounded by 10 yuan per ton.
Comment: Research report from securities traders indicates that de-capacity and output restriction boosted price to go up in many places in mid-August. The price will keep increasing stably with demand hiking in September. Profit of cement enterprises is expected to see improvement. In terms of listed companies, Tangshan Jidong Cement Co., Ltd. (000401.SZ), Huaxin Cement Co., Ltd. (600801.SH) and other firms draw attentions from several securities companies.
○Intel introduces product integrating reality, it expected to become new direction of VR development
------
Intel CEO Brian Krzanich displays a Project Alloy virtual reality (VR) headset during a keynote speech at the 2016 Intel Developers Forum (IDF). This product integrates real technology. Even though in virtual environment, users can interact with the virtual world directly through their own hands instead of sensor and controller of traditional VR. Intel also announces that it will cooperate with Microsoft in VR field.
Comment: Integrating with reality is able to provide more complete experience, which is expected to become a new direction for VR development. The key to this technology rests in that the real 3D camera of Intel allows the equipment realize gesture recognition and can track space information around users so as to achieve positioning. Lianchuang Electronic Technology Co., Ltd. (002036.SZ) is engaged in producing module of high-resolution camera and components of augmented reality (AR) equipment are expected to see shipment in limited quantities in September. MEMS camera of Shenzhen O-film Tech Co., Ltd. (002456.SZ) can be applied in VR and AR fields.
TOP
[Announcement Interpretation]
○Hejin Holding to raise RMB360 mln to transform to dental medical treatment
------
Shenyang Hejin Holding Co., Ltd. (000633.SZ) proposes to issue 43.50 million shares through private placement to raise 360 million yuan, so as to acquire the 100 percent equities of Xiaoyuan Dental, and construction Niaochao clinic and medical information system.
Comment: Ultratek materials business of the listed company is constantly depressed, with a loss of 27.33 million yuan in semi-annual report and also expected losses of 39 million to 32 million yuan for the first three quarters. It will acquire the 100 percent equities of Xiaoyuan Dental, which is a significant step for its strategic transformation. After restructuring, it will choose an opportunity to establish new dental clinic to expand market extension scope.
○Xu Maodong, head of Galaxy Internet, steps in Busen Garments
------
The common partner and limited partner of Shanghai Ruizhi Assets Management Partnership Co., Ltd., who is the controlling shareholder of Zhejiang Busen Garments Co., Ltd. (002569.SZ), transferred their shareholdings to Galaxy Yingyong and Lhasa Xingzhuo Enterprise Co., Ltd. respectively. Galaxy Yingyong transferred 1.03 percent shareholdings for 30 million yuan (to become common partner), and Lhasa Xingzhuo transferred 93.99 percent shareholdings for around 982 million yuan (to become limited partner).
Currently, Galaxy Yingyong and Lhasa Xingzhuo are both held by Xu Maodong and Xu Haohan. Xu Maodong becomes the new actual controller of the listed company, and indicates that he will "carry out effective integration on high-quality assets when the conditions are matured to take advantage of the listed company" in the future. It learnt that Xu Maodong owns enterprises, like Galaxy Internet, which are good at integrating sub-industries of internet to form an entrepreneurship ecosphere.
○Natural person Wen Xitang bought shares of China National Software ＆ Service to over 5 pct
------
China National Software ＆ Service Company Limited (600536.SH) announced that, up to August 17, the natural person Wen Xitang has held 26,309,500 shares of the listed company in total, accounting for 5.32 percent of the total equity.
○Restructuring of Baotou Beifang Chuangye and CSSC Steel Structure Engineering approved
------
The restructuring of Baotou Beifang Chuangye Co., Ltd. (600967.SH) has been unconditionally approved by China Securities Regulatory Commission; and CSSC Steel Structure Engineering Co., Ltd. (600072.SH) has been conditionally approved.
○Longji Machinery and Longquan Pipeline Engineering to expand main businesses through private placement
------
Shandong Longji Machinery Co., Ltd. (002363.SZ) plans to issue 53.69 million shares through private placement with 11.49 yuan per share as the bottom price, and the raised 617 million yuan will be invested in high-end brake disc reorganization and expansion project and automobile brake system test center project.
Shandong Longquan Pipeline Engineering Co., Ltd. (002671.SZ) proposes to issue 30.36 million shares through private placement with 11.42 yuan per share as the bottom price, and the raised 347 million yuan will be invested in PCCP production line construction project of its Xinjiang branch, pre-stress steel cylinder ＆ concrete cylinder project of its Jilin branch with the annual production of 70 km, and liquidity supplement.
TOP
[Financial Reports Express]
○Do-fluoride Chemicals predicts great performance growth for Q1, Q2 and Q3
------
The semi-annual performance of Do-fluoride Chemicals Co., Ltd. (002407.SZ) increased by 25 times, with 12 times for its expectation of the first three quarters; it proposes to increased investment in Hebei Red Star Automobile Manufacturing Co., Ltd. with 200 billion yuan. Performance of Zhejiang Founder Motor Co., Ltd. (002196.SZ) increased four times in its semi-annual report, with three times as forecast for the first three quarters. The figure was 26 times for Jiangsu Huahong Technology Co., Ltd. (002645.SZ), with great growth forecast for the first three quarters from losses. The figures for Guangxi Wuzhou Communications Co., Ltd. (600368.SH) are semi-annual growth of 110 percent and forecast growth of 350 percent and 400 percent for the first three quarters. Shanghai Maling Aquarius Co., Ltd. (600073.SH) announced a growth rate of 170 percent in the semi-annual report, with forecast growth of 100 percent and 150 percent for the first three quarters.
○Vtr Bio-Tech proposed a high share conversion and dividend
------
Chen Shaomei, actual controller and chairman of Guangdong Vtr Bio-Tech Co., Ltd. (300381.SZ), proposed a 20-for-10 conversion of capital surplus into shares combined with 1 yuan dividend for every 10 shares according to its semi-annual report.
[Trading Trends]
○National teams increased shareholdings in some individual stocks of bank and electrical power sectors in Q2
------
Based on Wind statistics, up to August 17, in the ten largest shareholders list of 643 listed companies having disclosed semi-annual report, national teams have involved in 263 listed companies. The national teams hold shares of 124.4 billion yuan. In the second quarter, the national teams sold out nine stocks, reduced shareholdings in 13 stocks, and increased shareholdings in 14 ones.
In terms of those individual shares increasingly bought by national teams, the number of increased shareholdings of Hua Xia Bank Co., Ltd. (600015.SH), Huaneng Power International, Inc. (600011.SH), Zhejiang Zheneng Electric Power Co., Ltd. (600023.SH), Changjiang Securities Company Limited (000783.SZ) and Tasly Pharmaceutical Group Co., Ltd. (600535.SH) rank high. Referring to industries, national teams mainly increased shareholdings in sectors, such as bank, electrical power, securities, medicine and consumption. It is worth of noting that, shareholders increasing shareholdings or carrying out private placement may cause the national teams to be out of the first ten list, which could not reflect in the regular reports.
TOP
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