[Today's Guide]
○ Treasury futures suffered greatest decline rate recently, bond market pays attention to capital factor and CPI
○ Shareholders increased shareholdings in many listed companies in Q2, some closing to threshold of 5 pct.
○PPP mode constantly promoted, large papermaking enterprises raise prices
○ Sotech Smarter Equipment to expand civil-military integration, Tuopu Group as supplier of Tesla
[SSN Focus]
○ Treasury futures suffered greatest decline rate recently, bond market pays attention to capital factor and CPI
------
The dominant contract of 10-yr Treasury futures dropped at 0.35 percent at the closing of August 23, highest for a single trading day since the late April; average weighted overnight rate set a new one-month high in the interbank market. Intraday winning rate for 3-month Treasury time deposit was 2.80 percent, up 0.05 percentage point compared to last time. Additionally, the central bank newly added 14-day reverse repo turnover, which has been the first time since February. Compared to 7-day reverse repo, the 14-day type has a higher rate, likely to increase the market capital cost, some institutions believed.
Comment: After several months of declines in the bond market, investors' profit-taking sentiment gradually intensifies, and recently increased capital price further triggers adjustment in advance. But the central bank is expected to take moves and use various tools to stabilize the liquidity, if the capital factor continues to tighten. The bond market will also keep a close eye on CPI in next few months. Although influence from increasing pig price is not great now, CPI has contributed much more in service projects, and the whole-year CPI is still expected to be around 2.0 percent.
[SSN Selection]
○ China Insurance Regulatory Commission on August 23 issued two drafts searching for public opinions, and proposed to punish those taking advantages of "long-term risk in short time" in this industry, according to caixin.com.
○ Dalian Wanda Commercial Properties Co., Ltd. (03699.HK) will list on Shanghai Stock Exchange throught IPO or backdoor listing; Anbang Insurance Group will pursue for listing opportunities through IPO in Hong Kong market for its insurance and overseas departments, the foreigh media reported.
○ Shanghai Municipal Government held press conference on August 23 that funds of over 10 billion yuan will be set to support industrial development of areas closing to ports.
○ China held a press conference for Mars exploration program on August 23, and announced the first Mars probe and rover apperance design structure of China.
○ Shanghai Electric Power Co., Ltd. (600021.SH) recieved a notice from its controling shareholder State Power Investment Corporation, and the listed company will suspend the trading from August 24, likely to involve restructuring, share issuance to acqurie assets, and other issues.
TOP
[Data Voice]
○ Shareholders increased shareholdings in many listed companies in Q2, some closing to threshold of 5 pct.
------
Based on shareholder ranking list in semi-annual reports, SSN learnt that main shareholders of a wave of listed companies increased the shareholdings in these companies in the second quarter, and shareholding proportion of some shareholders excessed 4 percent up to the end of the said quarter. Hehe Group holds 4.37 percent equities of Hua Xia Bank Co., Ltd.(600015.SH); Anxin Trust Co., Ltd. (600816.SH) holds 4.40 percent equities of Dr.Peng Telecom ＆ Media Group Co., Ltd. (600804.SH); 4.4 percent equities of Daheng New Epoch Technology, Inc.(600288.SH) held by its shareholder Wu Lixin; 4.88 percent equities of Zhongxing Shenyang Commercial Building Group Co., Ltd.(000715.SZ) held by Siasun Robot ＆ Automation Co., Ltd.(300024.SZ); Xiamen International Trade ＆ Assets Management Co., Ltd. holds 4.98 percent equities of Jiangmen Sugarcane Chemical Factory (Group) Co., Ltd. (000576.SZ), and the listed company suspended the trading from August 18.
TOP
[Industry Information]
○ PPP mode constantly promoted, environmental protection projects likely to attract funds
------
Up to the end of July, among two waves of PPP projects in the public recommendation list, 619 ones have signed contracts, with a total investment of 100.19 billion yuan, according to information of National Development and Reform Commission on August 23. These projects mainly focus on sewage ＆ rubbish treatment, water ＆ heat ＆ fuel gas supply, railway, road, port and other fields.
Comment: Under the background of insufficient assets and deepening real economy, PPP mode has gradually become a significant way for governments to carry out financing for infrastructure, and PPP projects are increasingly attractive to funds, based on research report of China Sercurites. PPP projects in environmental protection field are expected to gain stable profits, which are high-quality projects. In terms of listed companies, Focused Photonics (Hangzhou) , Inc.(300203.SZ), Yunnan Yuntou Ecology and Environment Technology Co., Ltd. (002200.SZ) and Beijing GeoEnviron Engineering ＆ Technology, Inc. (603588.SH) with certain PPP operational experience are capable to achieve high-quality projects.
○ Large papermaking enterprises raise prices, industry prosperity expected to continue
------
SSN learns that 23 papermaking enterprises released circular on Aug. 23 that they would raise prices of ivory board and coated art paper by about 100-300 yuan per ton. Relevant manufacturers indicate that this price adjustment is contributed by two reasons. One is that pressure on environmental protection drives output restriction by enterprises, which leads to shrink in supply and inventory; the other one is that demand for ivory board may increase as traditional peak season is coming soon after mid-September.
Comment: Institutions believe that price hike by papermaking enterprises in August makes expectation on the market. It is predicated that price of body paper will continue to rise in the fourth quarter. The industrial profitability will continue to be better. Shandong Bohui Paper Industry Co., Ltd. (600966.SH) is a leader in ivory board and its paper output reached about 1.48 million tons last year. As a leader in papermaking industry, annual capacity of Shandong Chenming Paper Holdings Limited (000488.SZ) producing pulp paper reaches 8.5 million tons. Anhui Shanying Paper Industry Co., Ltd. (600567.SH) recently also enhanced prices by 100-300 yuan per ton for various products.
TOP
[Announcement Interpretation]
○ Sotech Smarter Equipment to purchase Fujiang Machinery Manufacturing to expand in civil-military integration
------
Sotech Smarter Equipment Co., Ltd. (300173.SZ) plans to issue shares at a price of 12.77 yuan per share through private placement to Sichuan Qifa Industrial Limited Company and He Qin to purchase 100 percent equity of Chengdu Fujiang Machinery Manufacturing Co. Ltd. at a total cost of 650 million yuan. Meanwhile, the company intends to raise supporting funds of 650 million yuan through private placement.
Fujiang Machinery Manufacturing is engaged in special casting process of aluminium alloy, precision machining and precision machining, which are mainly applied in military fields such as aerospace and aviation, weapons, ships and warships and electronics. The company's net profits recorded 11,368,700 yuan, 17,935,000 yuan and 9,354,000 yuan in 2014, 2015 and the first half of this year respectively. With this reorganization, the business of Sotech Smarter Equipment will expand to civil-military integration.
○ Tuopu Group as supplier of Tesla
------
Ningbo Tuopu Group Co., Ltd. (601689.SH) received Supplier Nomination (Agreement) from Tesla on Aug. 23. The company is acknowledged a supplier to provide product to Tesla.
○ Sinyang Semiconductor Materials to launch phase-2 employee shareholding plan
------
Shanghai Sinyang Semiconductor Materials Co., Ltd. (300236.SZ) is going to introduce phase-2 employee shareholding plan with a ceiling amount of 40 million yuan. The plan will be authorized to be managed by GR Asset Management Co., Ltd. and subscribe ordinary shares of GR-Sinyang private funds. The upper limit of GR-Sinyang private fund is 80 million yuan. GR-Sinyang fund establish ordinary and preferred shares at a proportion of 1:1 and the latter is subscribed by the company's own capital.
[Financial Reports Express]
○ Profit of Selen Science ＆ Technology expected to rise during Q1-Q3
------
Profit of Shenzhen Selen Science ＆ Technology Co., Ltd. (002341.SZ) grows by 82 percent in the first half of this year and it is expected to increase by 9-10 times in the first three quarters. Profit of Jiangsu Protruly Vision Technology Group Co., Ltd. (600074) rises by 200 percent in the first half and is predicted to move up by 200 percent in the first three quarters. Profit of Tangrenshen Group Co., Ltd. (002567.SZ) jumps by nearly 200 percent in the first half and is estimated to hike by 100 percent in the first three quarters. Profit of Xinjiang Tianrun Dairy Co., Ltd. (600419.SH) surges by 150 percent in the first half and is expected to increase by 100 percent in the first three quarters. Profit of Oriental Energy Co., Ltd. (002221.SZ) grow by 100 percent and is expected to increase by more than 100 percent in the first three quarters.
[Trading Alarms]
○ Jiangyin Rural Commercial Bank and Zhengping Road ＆ Bridge Construction to launch IPO
------
Jiangyin Rural Commercial Bank (002807.SZ) will launch IPO at a price of 4.64 yuan per share with upper subscription limit of 59,000 shares for each account. The PE ratio is 10 times. The company is engaged in monetary and finance. Zhengping Road ＆ Bridge Construction Co. Ltd. will launch IPO at a price of 5.03 yuan per share with upper subscription limit of 29,000 shares for each account. The PE ratio is 23 times. The company is engaged in road and bridge engineering construction.
TOP
○ Treasury futures suffered greatest decline rate recently, bond market pays attention to capital factor and CPI
○ Shareholders increased shareholdings in many listed companies in Q2, some closing to threshold of 5 pct.
○PPP mode constantly promoted, large papermaking enterprises raise prices
○ Sotech Smarter Equipment to expand civil-military integration, Tuopu Group as supplier of Tesla
[SSN Focus]
○ Treasury futures suffered greatest decline rate recently, bond market pays attention to capital factor and CPI
------
The dominant contract of 10-yr Treasury futures dropped at 0.35 percent at the closing of August 23, highest for a single trading day since the late April; average weighted overnight rate set a new one-month high in the interbank market. Intraday winning rate for 3-month Treasury time deposit was 2.80 percent, up 0.05 percentage point compared to last time. Additionally, the central bank newly added 14-day reverse repo turnover, which has been the first time since February. Compared to 7-day reverse repo, the 14-day type has a higher rate, likely to increase the market capital cost, some institutions believed.
Comment: After several months of declines in the bond market, investors' profit-taking sentiment gradually intensifies, and recently increased capital price further triggers adjustment in advance. But the central bank is expected to take moves and use various tools to stabilize the liquidity, if the capital factor continues to tighten. The bond market will also keep a close eye on CPI in next few months. Although influence from increasing pig price is not great now, CPI has contributed much more in service projects, and the whole-year CPI is still expected to be around 2.0 percent.
[SSN Selection]
○ China Insurance Regulatory Commission on August 23 issued two drafts searching for public opinions, and proposed to punish those taking advantages of "long-term risk in short time" in this industry, according to caixin.com.
○ Dalian Wanda Commercial Properties Co., Ltd. (03699.HK) will list on Shanghai Stock Exchange throught IPO or backdoor listing; Anbang Insurance Group will pursue for listing opportunities through IPO in Hong Kong market for its insurance and overseas departments, the foreigh media reported.
○ Shanghai Municipal Government held press conference on August 23 that funds of over 10 billion yuan will be set to support industrial development of areas closing to ports.
○ China held a press conference for Mars exploration program on August 23, and announced the first Mars probe and rover apperance design structure of China.
○ Shanghai Electric Power Co., Ltd. (600021.SH) recieved a notice from its controling shareholder State Power Investment Corporation, and the listed company will suspend the trading from August 24, likely to involve restructuring, share issuance to acqurie assets, and other issues.
TOP
[Data Voice]
○ Shareholders increased shareholdings in many listed companies in Q2, some closing to threshold of 5 pct.
------
Based on shareholder ranking list in semi-annual reports, SSN learnt that main shareholders of a wave of listed companies increased the shareholdings in these companies in the second quarter, and shareholding proportion of some shareholders excessed 4 percent up to the end of the said quarter. Hehe Group holds 4.37 percent equities of Hua Xia Bank Co., Ltd.(600015.SH); Anxin Trust Co., Ltd. (600816.SH) holds 4.40 percent equities of Dr.Peng Telecom ＆ Media Group Co., Ltd. (600804.SH); 4.4 percent equities of Daheng New Epoch Technology, Inc.(600288.SH) held by its shareholder Wu Lixin; 4.88 percent equities of Zhongxing Shenyang Commercial Building Group Co., Ltd.(000715.SZ) held by Siasun Robot ＆ Automation Co., Ltd.(300024.SZ); Xiamen International Trade ＆ Assets Management Co., Ltd. holds 4.98 percent equities of Jiangmen Sugarcane Chemical Factory (Group) Co., Ltd. (000576.SZ), and the listed company suspended the trading from August 18.
TOP
[Industry Information]
○ PPP mode constantly promoted, environmental protection projects likely to attract funds
------
Up to the end of July, among two waves of PPP projects in the public recommendation list, 619 ones have signed contracts, with a total investment of 100.19 billion yuan, according to information of National Development and Reform Commission on August 23. These projects mainly focus on sewage ＆ rubbish treatment, water ＆ heat ＆ fuel gas supply, railway, road, port and other fields.
Comment: Under the background of insufficient assets and deepening real economy, PPP mode has gradually become a significant way for governments to carry out financing for infrastructure, and PPP projects are increasingly attractive to funds, based on research report of China Sercurites. PPP projects in environmental protection field are expected to gain stable profits, which are high-quality projects. In terms of listed companies, Focused Photonics (Hangzhou) , Inc.(300203.SZ), Yunnan Yuntou Ecology and Environment Technology Co., Ltd. (002200.SZ) and Beijing GeoEnviron Engineering ＆ Technology, Inc. (603588.SH) with certain PPP operational experience are capable to achieve high-quality projects.
○ Large papermaking enterprises raise prices, industry prosperity expected to continue
------
SSN learns that 23 papermaking enterprises released circular on Aug. 23 that they would raise prices of ivory board and coated art paper by about 100-300 yuan per ton. Relevant manufacturers indicate that this price adjustment is contributed by two reasons. One is that pressure on environmental protection drives output restriction by enterprises, which leads to shrink in supply and inventory; the other one is that demand for ivory board may increase as traditional peak season is coming soon after mid-September.
Comment: Institutions believe that price hike by papermaking enterprises in August makes expectation on the market. It is predicated that price of body paper will continue to rise in the fourth quarter. The industrial profitability will continue to be better. Shandong Bohui Paper Industry Co., Ltd. (600966.SH) is a leader in ivory board and its paper output reached about 1.48 million tons last year. As a leader in papermaking industry, annual capacity of Shandong Chenming Paper Holdings Limited (000488.SZ) producing pulp paper reaches 8.5 million tons. Anhui Shanying Paper Industry Co., Ltd. (600567.SH) recently also enhanced prices by 100-300 yuan per ton for various products.
TOP
[Announcement Interpretation]
○ Sotech Smarter Equipment to purchase Fujiang Machinery Manufacturing to expand in civil-military integration
------
Sotech Smarter Equipment Co., Ltd. (300173.SZ) plans to issue shares at a price of 12.77 yuan per share through private placement to Sichuan Qifa Industrial Limited Company and He Qin to purchase 100 percent equity of Chengdu Fujiang Machinery Manufacturing Co. Ltd. at a total cost of 650 million yuan. Meanwhile, the company intends to raise supporting funds of 650 million yuan through private placement.
Fujiang Machinery Manufacturing is engaged in special casting process of aluminium alloy, precision machining and precision machining, which are mainly applied in military fields such as aerospace and aviation, weapons, ships and warships and electronics. The company's net profits recorded 11,368,700 yuan, 17,935,000 yuan and 9,354,000 yuan in 2014, 2015 and the first half of this year respectively. With this reorganization, the business of Sotech Smarter Equipment will expand to civil-military integration.
○ Tuopu Group as supplier of Tesla
------
Ningbo Tuopu Group Co., Ltd. (601689.SH) received Supplier Nomination (Agreement) from Tesla on Aug. 23. The company is acknowledged a supplier to provide product to Tesla.
○ Sinyang Semiconductor Materials to launch phase-2 employee shareholding plan
------
Shanghai Sinyang Semiconductor Materials Co., Ltd. (300236.SZ) is going to introduce phase-2 employee shareholding plan with a ceiling amount of 40 million yuan. The plan will be authorized to be managed by GR Asset Management Co., Ltd. and subscribe ordinary shares of GR-Sinyang private funds. The upper limit of GR-Sinyang private fund is 80 million yuan. GR-Sinyang fund establish ordinary and preferred shares at a proportion of 1:1 and the latter is subscribed by the company's own capital.
[Financial Reports Express]
○ Profit of Selen Science ＆ Technology expected to rise during Q1-Q3
------
Profit of Shenzhen Selen Science ＆ Technology Co., Ltd. (002341.SZ) grows by 82 percent in the first half of this year and it is expected to increase by 9-10 times in the first three quarters. Profit of Jiangsu Protruly Vision Technology Group Co., Ltd. (600074) rises by 200 percent in the first half and is predicted to move up by 200 percent in the first three quarters. Profit of Tangrenshen Group Co., Ltd. (002567.SZ) jumps by nearly 200 percent in the first half and is estimated to hike by 100 percent in the first three quarters. Profit of Xinjiang Tianrun Dairy Co., Ltd. (600419.SH) surges by 150 percent in the first half and is expected to increase by 100 percent in the first three quarters. Profit of Oriental Energy Co., Ltd. (002221.SZ) grow by 100 percent and is expected to increase by more than 100 percent in the first three quarters.
[Trading Alarms]
○ Jiangyin Rural Commercial Bank and Zhengping Road ＆ Bridge Construction to launch IPO
------
Jiangyin Rural Commercial Bank (002807.SZ) will launch IPO at a price of 4.64 yuan per share with upper subscription limit of 59,000 shares for each account. The PE ratio is 10 times. The company is engaged in monetary and finance. Zhengping Road ＆ Bridge Construction Co. Ltd. will launch IPO at a price of 5.03 yuan per share with upper subscription limit of 29,000 shares for each account. The PE ratio is 23 times. The company is engaged in road and bridge engineering construction.
TOP
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