[Today's Guide]
○ Shanghai SOE ETF to release soon to facilitate state-owned capital and equity reform
○ China Aero-engine Group to establish, aero-engine industry to see new times
○ B-soft to buy Botai Service, Shangyuan Capital buys Yongan Pharmaceutical through secondary market acquisition to 5 percent threshold
○ Lushang Property raises fund to increase investment in property, Zixin Pharmaceutical Industrial proposes high share conversion and dividend
[SSN Focus]
○ Shanghai SOE ETF to release soon to facilitate state-owned capital and equity reform
------
China Universal Shanghai SOE ETF released the announcement on listing for trading on Aug. 24. The fund has 15.2 billion units with the latest net value of 1.037 yuan and will be listed for trading from Aug. 29. Institutes hold nearly 95 percent of its. Among the top ten holders, seven are state-owned enterprises in Shanghai. China Universal also announced that the main investor of the ETF will increase 143 sales agencies to handle the subscription of the fund from Aug. 23.
Comment: The state-owned capital kicked off consolidation with platforms for the flow of state-owned capitals. It will promote the securitization process with market-based means and vitalize state-owned enterprises through new ETF models. The issuing of the fund will help ordinary investors without securities accounts participate in the reform of state-owned enterprises in Shanghai. As most listed companies under the state-owned enterprises system in Shanghai are "large groups with small companies". There have been cases in significant assets reorganization and overall listing in recent years. Based on incomplete statistics, INESA, Shangtex, Bright Food Group and Orient International indicated that they will improve the securitization rate.
◆ Shanghai Feilo Acoustics Co., Ltd. (600651.SH) and Shanghai Chinafortune Co., Ltd. (600621.SH) announced on Aug. 24 evening that they have received a notice from their main shareholder INESA. The group is mulling significant matters related to the two listed companies, which may involve significant assets reorganization. The two companies will suspend trading from Aug. 25. As at the press time, Inesa Intelligent Tech Inc. (600602.SH), a company under INESA, has not released trading suspension announcement.
[SSN Selection]
○ The State Council issued reform plans on the division of the rights of central and local financial affairs and the responsibilities on expenses. Experts interviewed indicated that the expenses on high-speed rail will be assumed by the central government in the future.
○ China Banking Regulatory Commission (CBRC) released detailed rules on the regulation on online loans on Aug. 24, requiring not attracting public deposits and a maximum loan of 1 million yuan for one natural person on different platforms.
○ The National Development and Reform Commission (NDRC) issued opinions on facilitating the coordinated development of different regions, requiring focusing on the Belt and Road initiatives, the coordinated development of Beijing, Tianjin and Hebei and the development of the Yangtze River Economic Belt.
○ Relevant responsible persons of China Science ＆ Merchants Investment Management Group (CSC) told SSN that it intends to establish funds for industrial transformation and upgrading with local governments to participate in the mergers and reorganizations of listed companies.
○ Ant Financial indicates that it has no plans for listing. Foreign media cited the comments of the chief financial officer of Shanghai Lujiazui International Financial Asset Exchange Co., Ltd., saying that it may be listed in Hong Kong next year.
TOP
[Industry Information]
○ China Aero-engine Group to establish, aero-engine industry to see new times
------
SSN learnt that China Aero-engine Group Co., Ltd. will be officially established soon. It means that the twelfth central military engineering group in China has been established and the Chinese aero-engine industry will embrace new times. Currently, AVIC Aviation Engine Corporation Plc. (600893.SH), Sichuan Chengfa Aero Science ＆ Technology Co., Ltd. (600391.SH) and AVIC Aero-Engine Controls Co., Ltd. (000738.SZ) have been transferred to China Aero-engine Group.
Comment: Institutes believe that the market of the Chinese aero-engine for military purposes will reach over 30 billion yuan in each of the following ten years. The corresponding aero-engine market of new aircraft for civil aviation will be nearly 60 billion yuan in each of the following 20 years. The market enjoys a huge potential.
○ MOHURD advances underground pipeline construction, PPP to facilitate industrial development
------
The Ministry of Housing and Urban-Rural Development (MOHURD) issued a circular on its website on Aug. 24, requiring making plans on the construction of drainage and waterlogging prevention infrastructure and urban underground comprehensive pipelines and advancing the construction of urban underground comprehensive pipelines and drainage and waterlogging prevention facilities in an orderly way. Meanwhile, it requires local governments relaxing market entry restrictions and encouraging social capitals to participate in the construction of urban underground comprehensive pipelines and drainage and waterlogging prevention facilities.
Comment: Securities companies believe that as an important method of stabilizing economic growth and attracting private capitals, more contracts have been signed for PPP models, which will facilitate the development of the underground comprehensive pipelines. Hongrun Construction Group Co., Ltd. (002062.SZ) actively develops PPP and other infrastructure construction and will benefit from the development underground pipelines and sponge cities. Zhejiang Weixing New Building Materials Co., Ltd. (002372.SZ) is principally engaged in plastic pipes and the demand for underground pipeline network is huge.
○ CDMS to unveil soon, smart connection expected to become highlight
------
The organizing committee of Chengdu Motor Show (CDMS) on August 24 announced that the 19th Chengdu Motor Show will be held from September 2 to 11. By then, 110 automobile brands will gather in Chengdu. Various flagship and the latest vehicle models will be displayed in an exhibition area of 150,000 square meters. The host says that smart connection will be one of the highlights of the exhibition. Many new energy vehicle models and unmanned driving technology that attract the attention of the market will also be demonstrated on the show.
Comment: institutions believe that the proportion of the costs of automotive electronics in the finished automobile continues to rise, reaching about 35 percent at present. It is expected that this proportion will continue to increase to 50 percent by 2020. Ningbo Huaxiang Electronic Co., Ltd. (002048.SZ) indicated in the latest interim report that it will strengthen R＆D ability in automobile electronics and new materials. The company's performance for the first three quarters have increased by 1 to 1.3 times. WUS Printed Circuit Co., Ltd. (002463.SZ) is one of the few printed circuit board (PCB) manufacturers devoting to automobile electronics and high speed wireless communication equipment sectors.
TOP
[Announcement Interpretation]
○ B-soft to buy IT service provider Botai Service with RMB1, 238 mln
------
B-soft Co., ltd. (300451.SZ) proposes to buy the entire equities of Hangzhou Botai Information Technology Service Co., Ltd., an IT operation and maintenance provider, at the valuation of 1,238 million yuan, which will be satisfied by additional issuance through private placement and cash payment; at the same time, the company proposes to issue shares to Ge Hang and Zhou Jianxin, actual controllers of the listed company through private placement, to raise supporting fund of 81.9 million yuan. The issuance prices are both 39.37 yuan per share.
The committed net profits of the subject asset deducted of non-recurring profits or losses from 2016 to 2018 will be no less than 86.5 million yuan, 99.5 million yuan and 114 million yuan respectively, and the net profits will be no less than 300 million yuan in aggregate Through this transaction, the company's IT service business could rapidly tap into financial sectors such as banks.
○ Shangyuan Capital buys Yongan Pharmaceutical through secondary market acquisition to 5 percent threshold
------
Shangyuan Capital-Shangyuan No.2 private fund on August 24 increased holding 1.5348 percent equities of Qianjiang Yongan Pharmaceutical Co., Ltd. (002365.SZ) at the average price of 23.249 yuan per share; previously, Shangyuan Capital-Shangyuan No.1 has already held 3.5134 percent of the listed company (at the price of about 21.09 yuan per share). After the shareholding increase, Shangyuan Capital in total hold 5.0482 percent of the listed company, exceeding the 5 percent threshold. Shangyuan Capital indicated that it is rosy on the prospect of Yongan Pharmaceutical and plans to continue increase holding shares of the company. The latest price of the company is 23.16 yuan per share.
TOP
○ Lushang Property proposes to raise RMB2 bln to invest in two property projects in Qiangdao
------
Lushang Property Co., Ltd. (600223.SH) proposes to issue 419 million shares at no less than 4.77 yuan per share through private placement to raise 2 billion yuan, which will be used for two property projects in Qingdao City. 500 million yuan will be invested in Lushang Lanan Lishe, one of the projects, which is expected to realize net profits of 222 million yuan; 150 million yuan will be invested in Lishang Zhongxin Shoufu, the other project, which is expected to realize net profits of 555 million yuan.
○ Reorganizations of three companies approved by CSRC
------
Reorganizations of Mianyang Fulin Precision Machining Co., Ltd. (300432.SZ) and Zhejiang Wanliyang Co., Ltd. (002434.SZ) were approved by the China Securities Regulatory Commission (CSRC) conditionally, and the reorganization of Tongwei Co., Ltd. (600438.SH) was approved by the CSRC conditionally.
[Financial Reports Express]
○ Zixin Pharmaceutical Industrial proposes high share conversion and dividend
------
Jilin Zixin Pharmaceutical Industrial Co., Ltd. (002118.SZ) reported 6 times growth in the interim report, and proposes 10-for-10 conversion of capital surplus into shares. The company expects to substantially turn deficit into profits in the first three quarters. The Pacific Securities Co., Ltd. (601099.SH) reported 80 percent decline in the interim report, and proposes 5-for-10 conversion of capital surplus into shares. In the second quarter, Foresea Life Insurance increased 3.3 percent shareholding in the company.
○ Multiple companies expect growth in the first three quarters
------
Hengyi Petrochemical Co., Ltd. (000703.SZ) reported over 2 times growth in the interim report, and expects 50 times to 60 times growth for the first three quarters. Zhejiang Jingxing Paper Joint Stock Co., Ltd. (002067.SZ) reported 27 times growth in the interim report, and expects over 22 times growth for the first three quarters. Ningbo Ligong Environment and Energy Technology Co., ltd. (002322.SZ) reported 8 times growth in the interim report, and expects 155 percent to 185 percent growth in the first three quarters. Shenzhen Topray solar Co., Ltd. (002218.SZ) reported 3.8 times growth in the interim report, and expects 155 percent to 178 percent growth in the first three quarters. Jiangxi Special Electric Motor Co., Ltd. (002176.SZ) reported 2 times growth in the interim report, and expects about 3 times growth in the first three quarters. Yunnan Yuntou Ecology and Environment Technology Co., Ltd. (002200.SZ) reported 7 times growth in the interim report, and expects 6 times growth in the first three quarters.
Shenzhen New Nanshan Holding (group) Co., Ltd. (002314.SZ) reported 4 times growth in the interim report, and substantially turned deficit into losses in the first three quarters. Zhonghe Co., Ltd. (002070.SZ) reported 1.7 times growth in the interim report, and significantly turned losses into profits.
[Trading Alarms]
○ Longood Intelligent Electric IPO to debut
------
Shenzhen Longood Intelligent Electric Co., Ltd. (300543.SZ) will offer for subscription at 22.52 yuan per share. The PE ratio is 22 times. The upper limit for subscription is 15,000 shares. The company is primarily engaged in electronic intelligence controller.
TOP
○ Shanghai SOE ETF to release soon to facilitate state-owned capital and equity reform
○ China Aero-engine Group to establish, aero-engine industry to see new times
○ B-soft to buy Botai Service, Shangyuan Capital buys Yongan Pharmaceutical through secondary market acquisition to 5 percent threshold
○ Lushang Property raises fund to increase investment in property, Zixin Pharmaceutical Industrial proposes high share conversion and dividend
[SSN Focus]
○ Shanghai SOE ETF to release soon to facilitate state-owned capital and equity reform
------
China Universal Shanghai SOE ETF released the announcement on listing for trading on Aug. 24. The fund has 15.2 billion units with the latest net value of 1.037 yuan and will be listed for trading from Aug. 29. Institutes hold nearly 95 percent of its. Among the top ten holders, seven are state-owned enterprises in Shanghai. China Universal also announced that the main investor of the ETF will increase 143 sales agencies to handle the subscription of the fund from Aug. 23.
Comment: The state-owned capital kicked off consolidation with platforms for the flow of state-owned capitals. It will promote the securitization process with market-based means and vitalize state-owned enterprises through new ETF models. The issuing of the fund will help ordinary investors without securities accounts participate in the reform of state-owned enterprises in Shanghai. As most listed companies under the state-owned enterprises system in Shanghai are "large groups with small companies". There have been cases in significant assets reorganization and overall listing in recent years. Based on incomplete statistics, INESA, Shangtex, Bright Food Group and Orient International indicated that they will improve the securitization rate.
◆ Shanghai Feilo Acoustics Co., Ltd. (600651.SH) and Shanghai Chinafortune Co., Ltd. (600621.SH) announced on Aug. 24 evening that they have received a notice from their main shareholder INESA. The group is mulling significant matters related to the two listed companies, which may involve significant assets reorganization. The two companies will suspend trading from Aug. 25. As at the press time, Inesa Intelligent Tech Inc. (600602.SH), a company under INESA, has not released trading suspension announcement.
[SSN Selection]
○ The State Council issued reform plans on the division of the rights of central and local financial affairs and the responsibilities on expenses. Experts interviewed indicated that the expenses on high-speed rail will be assumed by the central government in the future.
○ China Banking Regulatory Commission (CBRC) released detailed rules on the regulation on online loans on Aug. 24, requiring not attracting public deposits and a maximum loan of 1 million yuan for one natural person on different platforms.
○ The National Development and Reform Commission (NDRC) issued opinions on facilitating the coordinated development of different regions, requiring focusing on the Belt and Road initiatives, the coordinated development of Beijing, Tianjin and Hebei and the development of the Yangtze River Economic Belt.
○ Relevant responsible persons of China Science ＆ Merchants Investment Management Group (CSC) told SSN that it intends to establish funds for industrial transformation and upgrading with local governments to participate in the mergers and reorganizations of listed companies.
○ Ant Financial indicates that it has no plans for listing. Foreign media cited the comments of the chief financial officer of Shanghai Lujiazui International Financial Asset Exchange Co., Ltd., saying that it may be listed in Hong Kong next year.
TOP
[Industry Information]
○ China Aero-engine Group to establish, aero-engine industry to see new times
------
SSN learnt that China Aero-engine Group Co., Ltd. will be officially established soon. It means that the twelfth central military engineering group in China has been established and the Chinese aero-engine industry will embrace new times. Currently, AVIC Aviation Engine Corporation Plc. (600893.SH), Sichuan Chengfa Aero Science ＆ Technology Co., Ltd. (600391.SH) and AVIC Aero-Engine Controls Co., Ltd. (000738.SZ) have been transferred to China Aero-engine Group.
Comment: Institutes believe that the market of the Chinese aero-engine for military purposes will reach over 30 billion yuan in each of the following ten years. The corresponding aero-engine market of new aircraft for civil aviation will be nearly 60 billion yuan in each of the following 20 years. The market enjoys a huge potential.
○ MOHURD advances underground pipeline construction, PPP to facilitate industrial development
------
The Ministry of Housing and Urban-Rural Development (MOHURD) issued a circular on its website on Aug. 24, requiring making plans on the construction of drainage and waterlogging prevention infrastructure and urban underground comprehensive pipelines and advancing the construction of urban underground comprehensive pipelines and drainage and waterlogging prevention facilities in an orderly way. Meanwhile, it requires local governments relaxing market entry restrictions and encouraging social capitals to participate in the construction of urban underground comprehensive pipelines and drainage and waterlogging prevention facilities.
Comment: Securities companies believe that as an important method of stabilizing economic growth and attracting private capitals, more contracts have been signed for PPP models, which will facilitate the development of the underground comprehensive pipelines. Hongrun Construction Group Co., Ltd. (002062.SZ) actively develops PPP and other infrastructure construction and will benefit from the development underground pipelines and sponge cities. Zhejiang Weixing New Building Materials Co., Ltd. (002372.SZ) is principally engaged in plastic pipes and the demand for underground pipeline network is huge.
○ CDMS to unveil soon, smart connection expected to become highlight
------
The organizing committee of Chengdu Motor Show (CDMS) on August 24 announced that the 19th Chengdu Motor Show will be held from September 2 to 11. By then, 110 automobile brands will gather in Chengdu. Various flagship and the latest vehicle models will be displayed in an exhibition area of 150,000 square meters. The host says that smart connection will be one of the highlights of the exhibition. Many new energy vehicle models and unmanned driving technology that attract the attention of the market will also be demonstrated on the show.
Comment: institutions believe that the proportion of the costs of automotive electronics in the finished automobile continues to rise, reaching about 35 percent at present. It is expected that this proportion will continue to increase to 50 percent by 2020. Ningbo Huaxiang Electronic Co., Ltd. (002048.SZ) indicated in the latest interim report that it will strengthen R＆D ability in automobile electronics and new materials. The company's performance for the first three quarters have increased by 1 to 1.3 times. WUS Printed Circuit Co., Ltd. (002463.SZ) is one of the few printed circuit board (PCB) manufacturers devoting to automobile electronics and high speed wireless communication equipment sectors.
TOP
[Announcement Interpretation]
○ B-soft to buy IT service provider Botai Service with RMB1, 238 mln
------
B-soft Co., ltd. (300451.SZ) proposes to buy the entire equities of Hangzhou Botai Information Technology Service Co., Ltd., an IT operation and maintenance provider, at the valuation of 1,238 million yuan, which will be satisfied by additional issuance through private placement and cash payment; at the same time, the company proposes to issue shares to Ge Hang and Zhou Jianxin, actual controllers of the listed company through private placement, to raise supporting fund of 81.9 million yuan. The issuance prices are both 39.37 yuan per share.
The committed net profits of the subject asset deducted of non-recurring profits or losses from 2016 to 2018 will be no less than 86.5 million yuan, 99.5 million yuan and 114 million yuan respectively, and the net profits will be no less than 300 million yuan in aggregate Through this transaction, the company's IT service business could rapidly tap into financial sectors such as banks.
○ Shangyuan Capital buys Yongan Pharmaceutical through secondary market acquisition to 5 percent threshold
------
Shangyuan Capital-Shangyuan No.2 private fund on August 24 increased holding 1.5348 percent equities of Qianjiang Yongan Pharmaceutical Co., Ltd. (002365.SZ) at the average price of 23.249 yuan per share; previously, Shangyuan Capital-Shangyuan No.1 has already held 3.5134 percent of the listed company (at the price of about 21.09 yuan per share). After the shareholding increase, Shangyuan Capital in total hold 5.0482 percent of the listed company, exceeding the 5 percent threshold. Shangyuan Capital indicated that it is rosy on the prospect of Yongan Pharmaceutical and plans to continue increase holding shares of the company. The latest price of the company is 23.16 yuan per share.
TOP
○ Lushang Property proposes to raise RMB2 bln to invest in two property projects in Qiangdao
------
Lushang Property Co., Ltd. (600223.SH) proposes to issue 419 million shares at no less than 4.77 yuan per share through private placement to raise 2 billion yuan, which will be used for two property projects in Qingdao City. 500 million yuan will be invested in Lushang Lanan Lishe, one of the projects, which is expected to realize net profits of 222 million yuan; 150 million yuan will be invested in Lishang Zhongxin Shoufu, the other project, which is expected to realize net profits of 555 million yuan.
○ Reorganizations of three companies approved by CSRC
------
Reorganizations of Mianyang Fulin Precision Machining Co., Ltd. (300432.SZ) and Zhejiang Wanliyang Co., Ltd. (002434.SZ) were approved by the China Securities Regulatory Commission (CSRC) conditionally, and the reorganization of Tongwei Co., Ltd. (600438.SH) was approved by the CSRC conditionally.
[Financial Reports Express]
○ Zixin Pharmaceutical Industrial proposes high share conversion and dividend
------
Jilin Zixin Pharmaceutical Industrial Co., Ltd. (002118.SZ) reported 6 times growth in the interim report, and proposes 10-for-10 conversion of capital surplus into shares. The company expects to substantially turn deficit into profits in the first three quarters. The Pacific Securities Co., Ltd. (601099.SH) reported 80 percent decline in the interim report, and proposes 5-for-10 conversion of capital surplus into shares. In the second quarter, Foresea Life Insurance increased 3.3 percent shareholding in the company.
○ Multiple companies expect growth in the first three quarters
------
Hengyi Petrochemical Co., Ltd. (000703.SZ) reported over 2 times growth in the interim report, and expects 50 times to 60 times growth for the first three quarters. Zhejiang Jingxing Paper Joint Stock Co., Ltd. (002067.SZ) reported 27 times growth in the interim report, and expects over 22 times growth for the first three quarters. Ningbo Ligong Environment and Energy Technology Co., ltd. (002322.SZ) reported 8 times growth in the interim report, and expects 155 percent to 185 percent growth in the first three quarters. Shenzhen Topray solar Co., Ltd. (002218.SZ) reported 3.8 times growth in the interim report, and expects 155 percent to 178 percent growth in the first three quarters. Jiangxi Special Electric Motor Co., Ltd. (002176.SZ) reported 2 times growth in the interim report, and expects about 3 times growth in the first three quarters. Yunnan Yuntou Ecology and Environment Technology Co., Ltd. (002200.SZ) reported 7 times growth in the interim report, and expects 6 times growth in the first three quarters.
Shenzhen New Nanshan Holding (group) Co., Ltd. (002314.SZ) reported 4 times growth in the interim report, and substantially turned deficit into losses in the first three quarters. Zhonghe Co., Ltd. (002070.SZ) reported 1.7 times growth in the interim report, and significantly turned losses into profits.
[Trading Alarms]
○ Longood Intelligent Electric IPO to debut
------
Shenzhen Longood Intelligent Electric Co., Ltd. (300543.SZ) will offer for subscription at 22.52 yuan per share. The PE ratio is 22 times. The upper limit for subscription is 15,000 shares. The company is primarily engaged in electronic intelligence controller.
TOP
Latest comments