[Today's Guide]
○ Central Leading Group for Deepening Overall Reform meeting requires promoting medical reform and guaranteeing transaction of land operation rights
○ Policies to support big data innovation, liquid metal research sees proress
○ O-film Tech to invest in AR optical company, Yantang Dairy to raise fund through private placement for production expansion
○ Ideal Group proposes high share conversion and dividend, Xingye Mining expects growth for the first three quarters
[SSN Focus]
○ Central Leading Group for Deepening Overall Reform meeting requires further promoting medical and land reform
------
Chinese President Xi Jinping chaired the 27th meeting of the Central Leading Group for Deepening Overall Reform on Aug. 30. The meeting deliberated the Certain Opinions on Further Deepening the Reform in the Pharmaceutical and Health System, requiring public hospitals making explorations and innovation in the operation mechanism reform, the medical insurance system, the establishment of the medicine supply guarantee system and the hierarchical diagnosis system and strives to make breakthroughs. The meeting also deliberated the Opinions on Improving the Division of the Ownership, Contract and Operation Rights on Rural Lands, requiring protecting operation entities to obtain the operation rights on land through transaction and guarantee stable operation expectations on the basis of protecting the collective ownership and the contract rights of farmers.
Comment: The key in the reform of the operation mechanism of public hospitals is to reform the prices of medical services. The hierarchical diagnosis has to improve the medical treatment services abilities of grass-roots hospitals. Institutes are rosy about the third-party diagnosis and medical imaging equipment and other industries. In addition, with the policy guarantees on the transaction of the operation rights of lands, household farms, cooperatives and other new agricultural organizations will continue to develop and the agricultural production efficiency will be improved. It will benefit the expansion of agricultural e-business, agricultural machinery and other industries.
[SSN Selection]
○ The National Development and Reform Commission (NDRC) released a circular on Aug. 30, requiring conducting relevant PPP work. It is reported that the third batch of PPP projects with over 600 billion yuan will be unveiled soon.
○ SSN learnt that the China Insurance Regulatory Commission (CIRC) proposes to amend the Regulation on Equities of Insurance Companies to raise the access threshold for shareholders and regulate shareholders' activities.
○ Treasury bond futures saw the biggest intraday decline on Aug. 30. Institutes estimate that the manufacturing PMI for August will rebound above 50.
○ Last week saw the biggest increase in new investors since last June after three consecutive weeks of increase. Securities margins ended four consecutive weeks of net inflow.
○ SSN learnt that the ex-factory of Wuliangye was raised by 60 yuan to 739 yuan per bottle.
○ China Evergrande Group (03333.HK) indicated that it has sufficient cash on Aug. 30 and plans to acquire some small developers.
TOP
[Industry Information]
○ Policies to support big data innovation and promote industrial development
------
The National Development and Reform Commission (NDRC) released a circular on Aug. 30, determining to implement a special program on strengthening the innovation ability in the big data industry to build an innovative network in the big data industry. Based on the plan, it will establish innovation platforms in the big data in the following two to three years and provide supports and services to relevant technology innovation in the big data industry. The special program will improve the supporting ability of basic technology in the big data industry and the application technologies and establish laboratories for national projects.
Comment: Institutes estimate that the global big data market reached nearly 150 billion yuan in 2015, representing a year-on-year growth of 24 percent. It is estimated that the China big data market will exceed 50 billion yuan in 2018. Securities companies believe that Shanghai Dragon Net Technology Co., Ltd. (300245.SZ) sees high growth in the sale of its database appliance and signed various orders with China Telecom and other large and medium enterprises. Beijing VRV Software Corporation Limited (300352.SZ) is principally engaged in terminal safety management products and reached cooperation intentions with PetroChina and the public security system to conduct pilot tests on the analysis system of network and terminal big data.
○ CAS makes breakthroughs in liquid metal research, more application expected in downstream
------
The Chinese Academy of Sciences announced on its website on Aug. 30 that the Technical Institute of Physics and Chemistry CAS and Tsinghua University developed self-driving liquid metal machine and mini vehicles with liquid metal as wheels with magnetic functional film. The liquid metal machine used to be in liquid form and the machine with solid and liquid provides functional bones to liquid metal machine and will speed up the research and development of soft machines.
Comment: Institutes pointed out that liquid metal enjoys advantages in performance, workmanship and cost. It is a new-generation revolutionary materials surpassing traditional light alloys and enjoys a bright future in 3C, vehicle and medical treatment industries. Among listed companies, Dongguan Eontec Co., Ltd. (300328.SZ) masters core technologies in liquid metals and has strong industrial consolidation ability. Nanjing Yunhai Special Metals Co., Ltd. (002182.SZ) indicated at the interactive platform that the magnalium liquid metal is under research and development.
TOP
[Announcement Interpretation]
○ O-film Tech to invest in U.S. AR optical company ODG
------
Shenzhen O-film Tech Co., Ltd. (002456.sz) proposes to jointly invest in ODG with its actual controller Cai Rongjun, both will contribute 10 million dollars in exchange for nearly 6.67 percent equities of ODG in aggregate. ODG's main product is enhanced AR smart glasses. The company has had several glass models for mass production, and continued the research of next generation consumer grade AR glass.
○ Yantang Dairy to raise RMB520 mln through private placement for production expansion
------
Guangdong Yantang Dairy Co., Ltd. (002732.SZ) proposes to issue 21.21 million shares at 24.68 yuan per share through private placement to raise 523 million yuan, which will be used to the phase II expansion project, construction of OAO ecommerce platform and the construction of engineering technical research center. Of the seven prospective investors, Guangdong Yueken Investment Co., Ltd., a company under the listed company's actual controller Guangdong Nongken, and Zhanjiang Nongken will subscribe 77.5 million yuan and 30 million yuan respectively. Besides, the company's employee stock ownership plan Yantang Diary No.1 will subscribe 36 million yuan.
○ Shareholder with more than 5 percent shareholdings continues to acquire shares of Dengyun Auto-parts
------
The interim report of Huaiji Dengyun Auto-parts (Holding) Co., ltd. (002715.SZ) shows that Beijing Weihuaxiang Assets Management Co., Ltd. holds 6,834,400 shares of the company as at the end of June, accounting for 7.43 percent of the listed company's total share capital. As of this May, Dengyun Auto-parts announced that it was bought by Weihuaxiang to the 5 percent threshold through secondary market acquisition. On this basis, Weihuaxiang increased buying 2.43 percent shares of the company afterwards.
○ Zhongzhu Healthcare win bid of PPP project of tumor hospital in Puyang City
------
ET Medical, wholly owned subsidiary of Zhongzhu Healthcare Holding Co., ltd. (600568.SH), has won the bid of the PPP project of tumor hospital in Puyang City, Henan Province. The estimated budget of the project is 500 million yuan. ET Medical holds 55 percent equities of the project. Zhongzhu Healthcare released its interim report on the same day, which shows that the listed company's net profits for the first half year has increased by 111 percent year on year.
TOP
[Financial Reports Express]
○ Ideal Group proposes high share conversion and dividend
------
Lianyungang Ideal Group Co., Ltd. (000626.SZ) reported 53 percent net profit growth in the interim report, and proposes 10-for-10 conversion of capital surplus into shares, combined with 3.33 yuan dividend. Jilin Chemical Fibre Co., ltd. (000420.SZ) reported 37 percent growth in the interim report and proposes 10-for-10 conversion of capital surplus into shares.
○ Xingye Mining expects growth for the first three quarters
------
Inner Mongolia Xingye Mining Co., Ltd. (000426.SZ) reported 21 percent growth in the interim report, and forecast about 3 times growth for the first three quarters. Global Top E-Commerce Co., Ltd. (002640.SZ) expect 1 to 1.5 times growth for the first three quarters. Ningbo Yunsheng Co., Ltd. (600366.SH) reported over 2 times growth in the interim report, and forecast no less than 1.5 times growth for the first three quarters. Dalian Zeus Entertainment Co., Ltd. (002354.SZ) reported 41 percent growth in the interim report, and forecast 2 to 3 times growth for the first three quarters.
Beijing Vantone Real Estate Co., Ltd. (600246.SH) reported nearly 17 times growth in the interim report. Midea Group Co., Ltd. (000333.SZ) reported 14 percent growth in the interim report, and its acquisition of Kuka has passed the anti-monopoly review of the U.S. Qingdao Haier Co., Ltd. (600690.SH) reported 21 percent growth in the interim report. China Shipbuilding Industry Company Limited (601989.SH) reported 3 times growth in the interim report. Fujian Start Group Co., Ltd. (600734.SH) reported 5 times growth in the interim report. Yihua Healthcare Co., ltd. (000150.SZ) reported 824 times growth in the interim report.
[Trading Trends]
○ Huicheng Electronic Material bought through two institutional seats
------
The trading volume ranking list of August 30 shows that Puyang Huicheng Electronic Material Co., Ltd. (300481.SZ) was bought through two institutional seats with a total of 133 million yuan, accounting for 24.35 percent of intraday turnover.
Comment: the OLED sector witnessed active trading on August 30. Institutions pointed out in the research report that Huicheng Electronic Material has proactively realized the prospect of OLED in the display area. The company has developed OLED functional material fluorene derivatives according to market demand, and formed industrial production in 2011. It is estimated that future market demand will see explosive growth with the rapid growth of downstream industry of OLED.
[Trading Alarms]
○ Xintai Natural Gas and Chuangxin New Material to offer for subscription
------
Xinjiang Xintai Natural Gas Co., Ltd. (732393.SZ) will offer for subscription at 26.66 yuan per share. The company's PE ratio is 23 times, with upper limit for subscription of 16000 shares. The company is primarily engaged in the provision of urban natural gas in Xinjiang. Yunnan Chuangxin New Material will offer for subscription at 23.41 yuan per share. The company's PE ratio is 23 times. The upper limit for subscription is 13000 shares. The company is primarily engaged in the provision of packaging and printing products.
TOP
○ Central Leading Group for Deepening Overall Reform meeting requires promoting medical reform and guaranteeing transaction of land operation rights
○ Policies to support big data innovation, liquid metal research sees proress
○ O-film Tech to invest in AR optical company, Yantang Dairy to raise fund through private placement for production expansion
○ Ideal Group proposes high share conversion and dividend, Xingye Mining expects growth for the first three quarters
[SSN Focus]
○ Central Leading Group for Deepening Overall Reform meeting requires further promoting medical and land reform
------
Chinese President Xi Jinping chaired the 27th meeting of the Central Leading Group for Deepening Overall Reform on Aug. 30. The meeting deliberated the Certain Opinions on Further Deepening the Reform in the Pharmaceutical and Health System, requiring public hospitals making explorations and innovation in the operation mechanism reform, the medical insurance system, the establishment of the medicine supply guarantee system and the hierarchical diagnosis system and strives to make breakthroughs. The meeting also deliberated the Opinions on Improving the Division of the Ownership, Contract and Operation Rights on Rural Lands, requiring protecting operation entities to obtain the operation rights on land through transaction and guarantee stable operation expectations on the basis of protecting the collective ownership and the contract rights of farmers.
Comment: The key in the reform of the operation mechanism of public hospitals is to reform the prices of medical services. The hierarchical diagnosis has to improve the medical treatment services abilities of grass-roots hospitals. Institutes are rosy about the third-party diagnosis and medical imaging equipment and other industries. In addition, with the policy guarantees on the transaction of the operation rights of lands, household farms, cooperatives and other new agricultural organizations will continue to develop and the agricultural production efficiency will be improved. It will benefit the expansion of agricultural e-business, agricultural machinery and other industries.
[SSN Selection]
○ The National Development and Reform Commission (NDRC) released a circular on Aug. 30, requiring conducting relevant PPP work. It is reported that the third batch of PPP projects with over 600 billion yuan will be unveiled soon.
○ SSN learnt that the China Insurance Regulatory Commission (CIRC) proposes to amend the Regulation on Equities of Insurance Companies to raise the access threshold for shareholders and regulate shareholders' activities.
○ Treasury bond futures saw the biggest intraday decline on Aug. 30. Institutes estimate that the manufacturing PMI for August will rebound above 50.
○ Last week saw the biggest increase in new investors since last June after three consecutive weeks of increase. Securities margins ended four consecutive weeks of net inflow.
○ SSN learnt that the ex-factory of Wuliangye was raised by 60 yuan to 739 yuan per bottle.
○ China Evergrande Group (03333.HK) indicated that it has sufficient cash on Aug. 30 and plans to acquire some small developers.
TOP
[Industry Information]
○ Policies to support big data innovation and promote industrial development
------
The National Development and Reform Commission (NDRC) released a circular on Aug. 30, determining to implement a special program on strengthening the innovation ability in the big data industry to build an innovative network in the big data industry. Based on the plan, it will establish innovation platforms in the big data in the following two to three years and provide supports and services to relevant technology innovation in the big data industry. The special program will improve the supporting ability of basic technology in the big data industry and the application technologies and establish laboratories for national projects.
Comment: Institutes estimate that the global big data market reached nearly 150 billion yuan in 2015, representing a year-on-year growth of 24 percent. It is estimated that the China big data market will exceed 50 billion yuan in 2018. Securities companies believe that Shanghai Dragon Net Technology Co., Ltd. (300245.SZ) sees high growth in the sale of its database appliance and signed various orders with China Telecom and other large and medium enterprises. Beijing VRV Software Corporation Limited (300352.SZ) is principally engaged in terminal safety management products and reached cooperation intentions with PetroChina and the public security system to conduct pilot tests on the analysis system of network and terminal big data.
○ CAS makes breakthroughs in liquid metal research, more application expected in downstream
------
The Chinese Academy of Sciences announced on its website on Aug. 30 that the Technical Institute of Physics and Chemistry CAS and Tsinghua University developed self-driving liquid metal machine and mini vehicles with liquid metal as wheels with magnetic functional film. The liquid metal machine used to be in liquid form and the machine with solid and liquid provides functional bones to liquid metal machine and will speed up the research and development of soft machines.
Comment: Institutes pointed out that liquid metal enjoys advantages in performance, workmanship and cost. It is a new-generation revolutionary materials surpassing traditional light alloys and enjoys a bright future in 3C, vehicle and medical treatment industries. Among listed companies, Dongguan Eontec Co., Ltd. (300328.SZ) masters core technologies in liquid metals and has strong industrial consolidation ability. Nanjing Yunhai Special Metals Co., Ltd. (002182.SZ) indicated at the interactive platform that the magnalium liquid metal is under research and development.
TOP
[Announcement Interpretation]
○ O-film Tech to invest in U.S. AR optical company ODG
------
Shenzhen O-film Tech Co., Ltd. (002456.sz) proposes to jointly invest in ODG with its actual controller Cai Rongjun, both will contribute 10 million dollars in exchange for nearly 6.67 percent equities of ODG in aggregate. ODG's main product is enhanced AR smart glasses. The company has had several glass models for mass production, and continued the research of next generation consumer grade AR glass.
○ Yantang Dairy to raise RMB520 mln through private placement for production expansion
------
Guangdong Yantang Dairy Co., Ltd. (002732.SZ) proposes to issue 21.21 million shares at 24.68 yuan per share through private placement to raise 523 million yuan, which will be used to the phase II expansion project, construction of OAO ecommerce platform and the construction of engineering technical research center. Of the seven prospective investors, Guangdong Yueken Investment Co., Ltd., a company under the listed company's actual controller Guangdong Nongken, and Zhanjiang Nongken will subscribe 77.5 million yuan and 30 million yuan respectively. Besides, the company's employee stock ownership plan Yantang Diary No.1 will subscribe 36 million yuan.
○ Shareholder with more than 5 percent shareholdings continues to acquire shares of Dengyun Auto-parts
------
The interim report of Huaiji Dengyun Auto-parts (Holding) Co., ltd. (002715.SZ) shows that Beijing Weihuaxiang Assets Management Co., Ltd. holds 6,834,400 shares of the company as at the end of June, accounting for 7.43 percent of the listed company's total share capital. As of this May, Dengyun Auto-parts announced that it was bought by Weihuaxiang to the 5 percent threshold through secondary market acquisition. On this basis, Weihuaxiang increased buying 2.43 percent shares of the company afterwards.
○ Zhongzhu Healthcare win bid of PPP project of tumor hospital in Puyang City
------
ET Medical, wholly owned subsidiary of Zhongzhu Healthcare Holding Co., ltd. (600568.SH), has won the bid of the PPP project of tumor hospital in Puyang City, Henan Province. The estimated budget of the project is 500 million yuan. ET Medical holds 55 percent equities of the project. Zhongzhu Healthcare released its interim report on the same day, which shows that the listed company's net profits for the first half year has increased by 111 percent year on year.
TOP
[Financial Reports Express]
○ Ideal Group proposes high share conversion and dividend
------
Lianyungang Ideal Group Co., Ltd. (000626.SZ) reported 53 percent net profit growth in the interim report, and proposes 10-for-10 conversion of capital surplus into shares, combined with 3.33 yuan dividend. Jilin Chemical Fibre Co., ltd. (000420.SZ) reported 37 percent growth in the interim report and proposes 10-for-10 conversion of capital surplus into shares.
○ Xingye Mining expects growth for the first three quarters
------
Inner Mongolia Xingye Mining Co., Ltd. (000426.SZ) reported 21 percent growth in the interim report, and forecast about 3 times growth for the first three quarters. Global Top E-Commerce Co., Ltd. (002640.SZ) expect 1 to 1.5 times growth for the first three quarters. Ningbo Yunsheng Co., Ltd. (600366.SH) reported over 2 times growth in the interim report, and forecast no less than 1.5 times growth for the first three quarters. Dalian Zeus Entertainment Co., Ltd. (002354.SZ) reported 41 percent growth in the interim report, and forecast 2 to 3 times growth for the first three quarters.
Beijing Vantone Real Estate Co., Ltd. (600246.SH) reported nearly 17 times growth in the interim report. Midea Group Co., Ltd. (000333.SZ) reported 14 percent growth in the interim report, and its acquisition of Kuka has passed the anti-monopoly review of the U.S. Qingdao Haier Co., Ltd. (600690.SH) reported 21 percent growth in the interim report. China Shipbuilding Industry Company Limited (601989.SH) reported 3 times growth in the interim report. Fujian Start Group Co., Ltd. (600734.SH) reported 5 times growth in the interim report. Yihua Healthcare Co., ltd. (000150.SZ) reported 824 times growth in the interim report.
[Trading Trends]
○ Huicheng Electronic Material bought through two institutional seats
------
The trading volume ranking list of August 30 shows that Puyang Huicheng Electronic Material Co., Ltd. (300481.SZ) was bought through two institutional seats with a total of 133 million yuan, accounting for 24.35 percent of intraday turnover.
Comment: the OLED sector witnessed active trading on August 30. Institutions pointed out in the research report that Huicheng Electronic Material has proactively realized the prospect of OLED in the display area. The company has developed OLED functional material fluorene derivatives according to market demand, and formed industrial production in 2011. It is estimated that future market demand will see explosive growth with the rapid growth of downstream industry of OLED.
[Trading Alarms]
○ Xintai Natural Gas and Chuangxin New Material to offer for subscription
------
Xinjiang Xintai Natural Gas Co., Ltd. (732393.SZ) will offer for subscription at 26.66 yuan per share. The company's PE ratio is 23 times, with upper limit for subscription of 16000 shares. The company is primarily engaged in the provision of urban natural gas in Xinjiang. Yunnan Chuangxin New Material will offer for subscription at 23.41 yuan per share. The company's PE ratio is 23 times. The upper limit for subscription is 13000 shares. The company is primarily engaged in the provision of packaging and printing products.
TOP
Latest comments