[Today's Guide]
○Several PVC enterprises forecast positve performance growth in H1, supply-demand structure to further improve later
○Policies supporting charging facilities for electric vehicles introduced in multiple places, charging equipment market to reach RMB100bln
○Blood plasma collection station in Yunyang County under Hualan Biological Engineering obtains permit, Jing Hua buys shares of Honglei Copper
○Actual controller of Myhome Real Estate Development increases shareholding, Performance of Good-ark Electronics expected to increase significantly in Q1-Q3
[SSN Focus]
○Several PVC enterprises forecast positve performance growth in H1, supply-demand structure to further improve later
------
Xinjiang Zhongtai Chemical Co., Ltd. (002092.SZ) announced its semiyearly report in the evening of Aug. 18. Thanks to the price hike of its main products like PVC, the company's performance in the first half sees a year-on-year growth of 1,099 percent, and a growth of 1,041 percent to 1,162 percent is expected in the first three quarters. Coincidentally, Ningxia Younglight Chemicals Co., Ltd. (000635.SZ), also engaged in PVC, announced on the same day that it forecasts a year-on-year performance growth of 18 percent in the first half. In April, Yibin Tianyuan Group Co., Ltd. (002386.SZ) once forecasted a loss in the first half, but latest market price of PVC has surged around 6 percent since then.
Comment: On the supply side, the capacity of the PVC industry has been declining in recent two years. The intensified efforts in environmental protection and the price hike of raw materials result in tight supply. On the demand side, the demand for PVC lags behind the housing starts by six to twelve months. Institutions expect that the industrial demand in the second half might grow by nearly 10 percent from a year earlier. Performance of relevant listed companies might rebound.
[SSN Selection]
○Three departments and commissions jointly printed and distributed the opinions about piloting employee shareholding in state-holding mixed ownership enterprises with the timetable and roadmap for the reform specified.
○Popular second-tier cities recorded outstanding housing price hike in July. The month-on-month price hike of new houses in eight cities with Xiamen, Hefei and Nanjing included exceeds 2 percent.
○It is learnt that the Pudong New Area has finalized the goals for open development of industrial parks. The reform measures of Shanghai Free Trade Zone will be introduced into areas like Lingang, Jinqiao and Zhangjiang.
○The Nuclear Power Institute of China on Aug. 17 entered into supply agreement with Russia. It is the first time for passive hydrogen re-combiner independently developed by China to enter Russia's nuclear power market.
○Statistics show that the technology industry is the biggest highlight of this US earnings season. The cloud computing business under Alphabet Inc., parent company of Google Inc., and Amazon both showed outstanding performance.
TOP
[Industry Information]
○Policies supporting charging facilities for electric vehicles introduced in multiple places, charging equipment market to reach RMB100bln
------
Based on SSN's statistics, Hunan, Sichuan and other provinces have introduced policies to support charging facilities for electric vehicles. Hunan set requirements on the proportion of charging facilities or the conditions for installment of charging facilities in the parking lots of various buildings and public parking lots. All of new parking spaces shall be equipped with charging facilities or conditions for the installment of charging facilities. In addition, Chengdu city of Sichuan released the standards on the subsidy for charging facilities for new energy vehicles in 2016, encouraging the construction of charging piles.
Comment: It is reported that the document prepared by the National Energy Administration on the construction of charging infrastructure in residential areas is under approval and will be released soon. Institutes estimate that with the acceleration in the construction of charging network, the charging equipment market in China will reach 132 billion yuan by 2020. As to listed companies, Hangzhou Zhongheng Electric Co., Ltd. (002364.SZ) obtained orders for charging equipment from the State Grid Corporation of China for multiple times. Qingdao TGOOD Electric Co., Ltd. (300001.SZ) actively participates in the construction of charging network through PPP model.
○Apple's purchase pushes up price of memory chips, supporting enterprises to benefit
------
As reported by media, since the 256GB memory capacity equipped by iPhone 7 sees strong demand, NAND flash memory might experience short supply and it might see further price hike till the fourth quarter of 2016. Big manufacturers of NAND chips, such as Samsung and SK Hynix Semiconductor, have all raised the price of NANA chips. Due to the huge purchase, Apple exercises a great influence of the supply-demand structure and price of the industry. The NAND chips purchased by Apple for iPhone 6s/6s Plus in 2015 accounted for 15 percent of goods supplied by the whole industry.
Comment: Institutions predict that the demand for 3D NAND might reach 281 million pieces by 2017. Compared with the output of 110 million pieces in 2015, the market enjoys huge potential. At present, China's storage chips nearly fully rely on import and information security faces a tough situation. The state is working hard on the domestication of storage chips. Hitech Semiconductor (Wuxi) Co., Ltd., a subsidiary under Wuxi Taiji Industry Company Ltd. (600667.SH), is engaged in the testing and packaging of chips and is a partner of SK Hynix Semiconductor; Payton Technology (Shenzhen) Co., Ltd. under Shenzhen Kaifa Technology Co., Ltd. (000021.SZ) has been working for the packaging and testing of Kingston and Micron Technology for years.
TOP
[Announcement Interpretation]
○Blood plasma collection station in Yunyang County under Hualan Biological Engineering obtains permit
------
Blood plasma collection station in Yunyang County under Hualan Biological Engineering, Inc. (002007) obtains permit from the Health and Family Planning Commission of Chongqing.
Comment: Thanks to the increase of blood collection and the upsurge in the revenue of blood products, the company recorded a net profit of 410 million yuan in the first half, representing a year-on-year growth of 32.4 percent. Hualan Biological Engineering expects a year-on-year growth of 15 percent to 35 percent in terms of the net profit in the January-September period. The company now owns 23 blood plasma collection stations, and 720 tons of blood was collected in 2015. As the number of stations increases, the collection of blood will increase in the future.
○Jing Hua buys shares of Honglei Copper
------
Jing Hua, shareholder of Zhejiang Honglei Copper Co., Ltd. (002647.SZ), rapidly increased his shareholding in the company by 10.77 million shares during Aug. 8-17, accounting for 4.91 percent of the company's total share capital. After this, Jing totally holds 21.96 million shares, accounting for 10 percent of the company's share capital.
Comment: Jing Hua was previously shareholder of Guanghe landscape Culture Communication Co., Ltd., ShanXi (600234.SH) and is good at speculating on reorganization theme. Jing signed equity transfer agreement with Qi Jiansheng, former actual controller and one of the persons acting in concert of Honglei Copper, on Jan. 16, according to which the latter would transfer 11.18 million shares in the listed company, accounting for 5.09 percent of total share capital.
TOP
○Actual controller of Myhome Real Estate Development increases shareholding
------
Liu Daoming, actual controller and president of Myhome Real Estate Development Group Co., Ltd. (000667.SZ), increased shareholding in the company by 9,991,100 shares on Aug. 17 and 18 at an average price of 4.17 yuan per share, which totally cost him 41.61 million yuan.
According to the shareholding increase plan, Liu and his wife and daughter will buy more shares of the company at a price below five yuan per share before Jan. 13, 2017. The highest amount will be limited to 200 million yuan.
○China Real Estate Corporation to acquire 30 pct equity of China (Suzhou) Real Estate
------
China Real Estate Corporation Limited (000736.SZ) plans to invest about 533 million yuan to acquire 30 percent equity of China (Suzhou) Real Estate Co., Ltd. held by China National Real Estate Development Group Corporation. After the acquisition, shareholding proportion of China Real Estate Corporation in China (Suzhou) Real Estate will increase to 70 percent, and the rest of 30 percent equity is held by China Road and Bridge Corporation. Net profits of China (Suzhou) Real Estate posted 4,644,900 yuan and -5,508,700 yuan in 2015 and Jan-June of 2016 respectively. The company's total asset is 3.254 billion yuan and net asset is 928 million yuan as of June 30. It is introduced that one of the two projects of China (Suzhou) Real Estate is under construction and sales, while the other one is still in early stage.
○China International Marine Containers cooperates with GLP China to develop logistic real estate industry
------
China International Marine Containers (Group) Co., Ltd. (000039.SZ) signed strategic cooperation agreement with Global Logistic Properties (GLP) (China), based on which the two companies will jointly develop logistic real estate business, complement each other's advantages and achieve powerful alliance. Controlling shareholder of GLP China is Global Logistic Properties Limited, which is a Singaporean listed company and is also the biggest developer and servicer of modern high-end logistic facilities in Asia.
○Price of major product of CNNC Hua Yuan Titanium Dioxide continues to hike
------
CNNC Hua Yuan Titanium Dioxide Co., Ltd. (002145.SZ) decides to raise price of rutile titanium dioxide again from Aug. 18. Price in China will be raised by 500 yuan per ton and export price will increase by 50 dollars per ton.
Comment: Rutile titanium dioxide is the major product of the company and its revenue accounted for 92 percent of the company's major revenue in 2015. The company has raised price of titanium dioxide for several times since 2016.
○Transfar to buy TPC at RMB110 Euros
------
Zhejiang Transfar Co., Ltd. (002010.SZ) plans to invest no more than 110 million Euros to purchase 100 percent equity of TPC Holding B.V, a specialty chemicals enterprise in Netherlands. TPC is an internationally leading company engaged in R＆D, production and sales of specialty chemicals and owns three core businesses including providing solutions to textile processing, digital printing and solutions to chemicals. It owns two formula plants which use the most advanced technology and global production partnership in Ede, Gelderland Province, Netherlands and Rayong Thailand. Net profits of TPC were 7.2 million Euros and 5.1 million Euros in 2015 and the first half of this year respectively.
[Financial Reports Express]
○Performance of Good-ark Electronics expected to increase significantly in Q1-Q3
------
Performance of Suzhou Good-ark Electronics Co., Ltd. (002079.SZ) increased by 600 percent in the first half of this year and is expected to hike by 400 percent in the first three quarters. Profit of Zhongtong Bus Holding Co., Ltd. (000957.SZ) grew by 500 percent according to the company's semiannual report.
Profit of Qianjiang Yongan Pharmaceutical Co., Ltd. (002365.SZ) rose by 181 percent according to semiannual report and is predicted to move up by 170-220 percent during the first and the third quarters. Dalian Insulator Group Co., Ltd. (002606.SZ) turned losses into profits in semiannual report and its profit is expected to go up by more than 200 percent in the first three quarters. Profit of Dongguan Kingsun Optoelectronic Co., Ltd. (002638.SZ) grew by 100 percent in the first half and is estimated to jumb by 163-185 percent in the first three quarters.
[Trading Trends]
○Leking Wellness bought through two institutional seats
------
The trading volume ranking list on Aug. 18 shows that Leking Wellness Co., Ltd. (300247.SZ) was bought through two institutional seats with a total of 210 million yuan, accounting for 25.63 percent of its intraday turnover, and was sell by one institutional seat with a total of 22.87 million yuan.
Comment: Medical treatment and health sector is recently favored by capital. According to an announcement, Leking Wellness would jointly develop new CAR-T cell therapy for solid tumor with Massachusetts General Hospital. The patent right will be owned by both of them and they have signed cooperative study agreement.
[Trading Alarms]
○Autobio Diagnostics and Henghe Mould to launch IPOs
------
Autobio Diagnostics Co., Ltd. will launch IPO at a price of 14.58 yuan per share with upper subscription limit of 12,000 shares for each account. The PE ratio is 23 times. The company is engaged in in vitro diagnostic reagent and instrument. Ningbo Henghe Mould Co., Ltd. (300539.SZ) will launch IPO at a price of 6.12 yuan per share with upper subscription limit of 9,000 shares for each account. The PE ratio is 23 times. The company is specialized in components of precision mould and precision plastics.
TOP
○Several PVC enterprises forecast positve performance growth in H1, supply-demand structure to further improve later
○Policies supporting charging facilities for electric vehicles introduced in multiple places, charging equipment market to reach RMB100bln
○Blood plasma collection station in Yunyang County under Hualan Biological Engineering obtains permit, Jing Hua buys shares of Honglei Copper
○Actual controller of Myhome Real Estate Development increases shareholding, Performance of Good-ark Electronics expected to increase significantly in Q1-Q3
[SSN Focus]
○Several PVC enterprises forecast positve performance growth in H1, supply-demand structure to further improve later
------
Xinjiang Zhongtai Chemical Co., Ltd. (002092.SZ) announced its semiyearly report in the evening of Aug. 18. Thanks to the price hike of its main products like PVC, the company's performance in the first half sees a year-on-year growth of 1,099 percent, and a growth of 1,041 percent to 1,162 percent is expected in the first three quarters. Coincidentally, Ningxia Younglight Chemicals Co., Ltd. (000635.SZ), also engaged in PVC, announced on the same day that it forecasts a year-on-year performance growth of 18 percent in the first half. In April, Yibin Tianyuan Group Co., Ltd. (002386.SZ) once forecasted a loss in the first half, but latest market price of PVC has surged around 6 percent since then.
Comment: On the supply side, the capacity of the PVC industry has been declining in recent two years. The intensified efforts in environmental protection and the price hike of raw materials result in tight supply. On the demand side, the demand for PVC lags behind the housing starts by six to twelve months. Institutions expect that the industrial demand in the second half might grow by nearly 10 percent from a year earlier. Performance of relevant listed companies might rebound.
[SSN Selection]
○Three departments and commissions jointly printed and distributed the opinions about piloting employee shareholding in state-holding mixed ownership enterprises with the timetable and roadmap for the reform specified.
○Popular second-tier cities recorded outstanding housing price hike in July. The month-on-month price hike of new houses in eight cities with Xiamen, Hefei and Nanjing included exceeds 2 percent.
○It is learnt that the Pudong New Area has finalized the goals for open development of industrial parks. The reform measures of Shanghai Free Trade Zone will be introduced into areas like Lingang, Jinqiao and Zhangjiang.
○The Nuclear Power Institute of China on Aug. 17 entered into supply agreement with Russia. It is the first time for passive hydrogen re-combiner independently developed by China to enter Russia's nuclear power market.
○Statistics show that the technology industry is the biggest highlight of this US earnings season. The cloud computing business under Alphabet Inc., parent company of Google Inc., and Amazon both showed outstanding performance.
TOP
[Industry Information]
○Policies supporting charging facilities for electric vehicles introduced in multiple places, charging equipment market to reach RMB100bln
------
Based on SSN's statistics, Hunan, Sichuan and other provinces have introduced policies to support charging facilities for electric vehicles. Hunan set requirements on the proportion of charging facilities or the conditions for installment of charging facilities in the parking lots of various buildings and public parking lots. All of new parking spaces shall be equipped with charging facilities or conditions for the installment of charging facilities. In addition, Chengdu city of Sichuan released the standards on the subsidy for charging facilities for new energy vehicles in 2016, encouraging the construction of charging piles.
Comment: It is reported that the document prepared by the National Energy Administration on the construction of charging infrastructure in residential areas is under approval and will be released soon. Institutes estimate that with the acceleration in the construction of charging network, the charging equipment market in China will reach 132 billion yuan by 2020. As to listed companies, Hangzhou Zhongheng Electric Co., Ltd. (002364.SZ) obtained orders for charging equipment from the State Grid Corporation of China for multiple times. Qingdao TGOOD Electric Co., Ltd. (300001.SZ) actively participates in the construction of charging network through PPP model.
○Apple's purchase pushes up price of memory chips, supporting enterprises to benefit
------
As reported by media, since the 256GB memory capacity equipped by iPhone 7 sees strong demand, NAND flash memory might experience short supply and it might see further price hike till the fourth quarter of 2016. Big manufacturers of NAND chips, such as Samsung and SK Hynix Semiconductor, have all raised the price of NANA chips. Due to the huge purchase, Apple exercises a great influence of the supply-demand structure and price of the industry. The NAND chips purchased by Apple for iPhone 6s/6s Plus in 2015 accounted for 15 percent of goods supplied by the whole industry.
Comment: Institutions predict that the demand for 3D NAND might reach 281 million pieces by 2017. Compared with the output of 110 million pieces in 2015, the market enjoys huge potential. At present, China's storage chips nearly fully rely on import and information security faces a tough situation. The state is working hard on the domestication of storage chips. Hitech Semiconductor (Wuxi) Co., Ltd., a subsidiary under Wuxi Taiji Industry Company Ltd. (600667.SH), is engaged in the testing and packaging of chips and is a partner of SK Hynix Semiconductor; Payton Technology (Shenzhen) Co., Ltd. under Shenzhen Kaifa Technology Co., Ltd. (000021.SZ) has been working for the packaging and testing of Kingston and Micron Technology for years.
TOP
[Announcement Interpretation]
○Blood plasma collection station in Yunyang County under Hualan Biological Engineering obtains permit
------
Blood plasma collection station in Yunyang County under Hualan Biological Engineering, Inc. (002007) obtains permit from the Health and Family Planning Commission of Chongqing.
Comment: Thanks to the increase of blood collection and the upsurge in the revenue of blood products, the company recorded a net profit of 410 million yuan in the first half, representing a year-on-year growth of 32.4 percent. Hualan Biological Engineering expects a year-on-year growth of 15 percent to 35 percent in terms of the net profit in the January-September period. The company now owns 23 blood plasma collection stations, and 720 tons of blood was collected in 2015. As the number of stations increases, the collection of blood will increase in the future.
○Jing Hua buys shares of Honglei Copper
------
Jing Hua, shareholder of Zhejiang Honglei Copper Co., Ltd. (002647.SZ), rapidly increased his shareholding in the company by 10.77 million shares during Aug. 8-17, accounting for 4.91 percent of the company's total share capital. After this, Jing totally holds 21.96 million shares, accounting for 10 percent of the company's share capital.
Comment: Jing Hua was previously shareholder of Guanghe landscape Culture Communication Co., Ltd., ShanXi (600234.SH) and is good at speculating on reorganization theme. Jing signed equity transfer agreement with Qi Jiansheng, former actual controller and one of the persons acting in concert of Honglei Copper, on Jan. 16, according to which the latter would transfer 11.18 million shares in the listed company, accounting for 5.09 percent of total share capital.
TOP
○Actual controller of Myhome Real Estate Development increases shareholding
------
Liu Daoming, actual controller and president of Myhome Real Estate Development Group Co., Ltd. (000667.SZ), increased shareholding in the company by 9,991,100 shares on Aug. 17 and 18 at an average price of 4.17 yuan per share, which totally cost him 41.61 million yuan.
According to the shareholding increase plan, Liu and his wife and daughter will buy more shares of the company at a price below five yuan per share before Jan. 13, 2017. The highest amount will be limited to 200 million yuan.
○China Real Estate Corporation to acquire 30 pct equity of China (Suzhou) Real Estate
------
China Real Estate Corporation Limited (000736.SZ) plans to invest about 533 million yuan to acquire 30 percent equity of China (Suzhou) Real Estate Co., Ltd. held by China National Real Estate Development Group Corporation. After the acquisition, shareholding proportion of China Real Estate Corporation in China (Suzhou) Real Estate will increase to 70 percent, and the rest of 30 percent equity is held by China Road and Bridge Corporation. Net profits of China (Suzhou) Real Estate posted 4,644,900 yuan and -5,508,700 yuan in 2015 and Jan-June of 2016 respectively. The company's total asset is 3.254 billion yuan and net asset is 928 million yuan as of June 30. It is introduced that one of the two projects of China (Suzhou) Real Estate is under construction and sales, while the other one is still in early stage.
○China International Marine Containers cooperates with GLP China to develop logistic real estate industry
------
China International Marine Containers (Group) Co., Ltd. (000039.SZ) signed strategic cooperation agreement with Global Logistic Properties (GLP) (China), based on which the two companies will jointly develop logistic real estate business, complement each other's advantages and achieve powerful alliance. Controlling shareholder of GLP China is Global Logistic Properties Limited, which is a Singaporean listed company and is also the biggest developer and servicer of modern high-end logistic facilities in Asia.
○Price of major product of CNNC Hua Yuan Titanium Dioxide continues to hike
------
CNNC Hua Yuan Titanium Dioxide Co., Ltd. (002145.SZ) decides to raise price of rutile titanium dioxide again from Aug. 18. Price in China will be raised by 500 yuan per ton and export price will increase by 50 dollars per ton.
Comment: Rutile titanium dioxide is the major product of the company and its revenue accounted for 92 percent of the company's major revenue in 2015. The company has raised price of titanium dioxide for several times since 2016.
○Transfar to buy TPC at RMB110 Euros
------
Zhejiang Transfar Co., Ltd. (002010.SZ) plans to invest no more than 110 million Euros to purchase 100 percent equity of TPC Holding B.V, a specialty chemicals enterprise in Netherlands. TPC is an internationally leading company engaged in R＆D, production and sales of specialty chemicals and owns three core businesses including providing solutions to textile processing, digital printing and solutions to chemicals. It owns two formula plants which use the most advanced technology and global production partnership in Ede, Gelderland Province, Netherlands and Rayong Thailand. Net profits of TPC were 7.2 million Euros and 5.1 million Euros in 2015 and the first half of this year respectively.
[Financial Reports Express]
○Performance of Good-ark Electronics expected to increase significantly in Q1-Q3
------
Performance of Suzhou Good-ark Electronics Co., Ltd. (002079.SZ) increased by 600 percent in the first half of this year and is expected to hike by 400 percent in the first three quarters. Profit of Zhongtong Bus Holding Co., Ltd. (000957.SZ) grew by 500 percent according to the company's semiannual report.
Profit of Qianjiang Yongan Pharmaceutical Co., Ltd. (002365.SZ) rose by 181 percent according to semiannual report and is predicted to move up by 170-220 percent during the first and the third quarters. Dalian Insulator Group Co., Ltd. (002606.SZ) turned losses into profits in semiannual report and its profit is expected to go up by more than 200 percent in the first three quarters. Profit of Dongguan Kingsun Optoelectronic Co., Ltd. (002638.SZ) grew by 100 percent in the first half and is estimated to jumb by 163-185 percent in the first three quarters.
[Trading Trends]
○Leking Wellness bought through two institutional seats
------
The trading volume ranking list on Aug. 18 shows that Leking Wellness Co., Ltd. (300247.SZ) was bought through two institutional seats with a total of 210 million yuan, accounting for 25.63 percent of its intraday turnover, and was sell by one institutional seat with a total of 22.87 million yuan.
Comment: Medical treatment and health sector is recently favored by capital. According to an announcement, Leking Wellness would jointly develop new CAR-T cell therapy for solid tumor with Massachusetts General Hospital. The patent right will be owned by both of them and they have signed cooperative study agreement.
[Trading Alarms]
○Autobio Diagnostics and Henghe Mould to launch IPOs
------
Autobio Diagnostics Co., Ltd. will launch IPO at a price of 14.58 yuan per share with upper subscription limit of 12,000 shares for each account. The PE ratio is 23 times. The company is engaged in in vitro diagnostic reagent and instrument. Ningbo Henghe Mould Co., Ltd. (300539.SZ) will launch IPO at a price of 6.12 yuan per share with upper subscription limit of 9,000 shares for each account. The PE ratio is 23 times. The company is specialized in components of precision mould and precision plastics.
TOP
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