[Today's Guide]
○ U.S. and China reach many agreements to deal with overcapacity and climatic changes
○ Dyeing charges greatly increase, Carbon black price likely to increase
○ Huadong Heavy Machinery transforms to culture ＆ media industry, Lingnan Group Holdings steps in tourism industry
○ Yawei Machine Tool extends electronic consumption, Jingfeng Phar. carries out inter-industrial merging
[SSN Focus]
○ U.S. and China reach many agreements to deal with overcapacity and climatic changes
------
Chinese President Xi Jinping on Sep. 3 met the U.S. President Obama coming to China for G20 summit in Hangzhou city, and both parties have reached many agreements in the meeting, according to the Xinhua News Agency. In terms of structural reform in the industrial field, both the U.S. and China realize that overcapacity in steel and other industries is a global issue, requiring collective efforts; both parties will work together to deal with such issue in electrolytic aluminum field worldwide. They commit to popularize and promote the best experience of PPP mode in their own countries, and agree to constantly reinforce the cooperation in this field regarding network security. On that day, they submitted and filed the approvals to the UN one by one, making the number of contracting parties of Paris Agreement officially approving climatic changes increase to 26.
Comment: Similar to steel, electrolytic aluminum is also one of the overcapacity industries in China, and the government has issued policies and opinions on de-overcapacity and demand expansion for many times. Institutions are optimistic about Yunnan Aluminium Co., Ltd. (000807.SZ), Henan Shenhuo Coal＆Power Co., Ltd. (000933.SZ) and Henan Zhongfu Industrial Co., Ltd. (600595.SH) which are low in costs with large electrolytic aluminum capacities per share. Additionally, support to Paris Agreement from the U.S. and China has expanded the way to make the agreement effective at the end of this year. Institutions are also optimistic about environmental protection companies having deployed in carbon emission permit trading and industrial energy savings.
[SSN Selection]
○ Analysis and research on Chinese-funded conceptual stocks' turn back will continue to be promoted, and the existing policies will not change, press spokesman of China Securities Regulatory Commission indicated on Sep. 2.
○ Subsidies for new energy automobile will be adjusted, and thresholds will be raised to force technological innovation, officials of many ministries indicated in the automobile industrial development forum at weekend.
○ Five measures will be taken to promote domestic trade circulation reform, and a 13th Five-Year planning will be released for this industry, according to Ministry of Commerce on Sep. 2.
○ Pilots for deferred commercial pension insurance based on individual income tax is likely to implement within this year, and overall individual income tax reform scheme has been submitted to the State Council, based on information from The Economic Observer.
○ Many chip providers raise the price of memory chip, as new iPhone going to be launched will enhance the demands, media reported.
○ The non-agricultural employment data of the U.S. released on Sep. 2 did not reach the market expectation, and most of traders expect that the Fed may raise the rate in December instead of September.
TOP
[Industry Information]
○ Many pressures on environmental protection field raise costs, dyeing charges greatly increase
------
Boosted by regulations for environmental protection industry and increased dye costs, many dyeing enterprises in Jiaxing city have raised the price of 1,000 to 2,000 yuan per ton since September, up 10 to 20 percent, SSN learnt. Those in Suzhou and surrounding cities have increased the dyeing charges at different degrees in August.
Comment: Along with the arriving peak seasons of September and October, logged orders caused by shutdowns of downstream enterprises will gradually ease, and the dyeing industry will see opportunity for prospective improvement, institutions expect. In addition, with stricter regulations in the environmental protection industry, dye price will keep firm in a short term, supporting the dyeing charges facing increased costs. Among listed companies, Zhejiang Hangmin Co., Ltd. (600987.SH) is a dyeing magnate with annual capacity of nearly 1 billion meters; Zhejiang Mizuda Printing＆Dyeing Group Co., Ltd. (002034.SZ) can produce the dye of 50 million meters annually.
○ Carbon black price soars by 5 pct., price likely to increase in September
------
Promoted by increased raw materials price and enterprises' overhaul, carbon black price recently increases by 200 to 300 yuan per ton, up nearly 5 percent, with an accumulative growth of 18 percent since this year. Referring to current carbon black N330, its price is usually 4,000 to 5,000 yuan per ton, and carbon black price of related manufacturers is expected to increase during stabilization in September.
Comment: Capacity of carbon black industry is likely to decline over 2 percent annually from 2016 to 2020, and supply ＆ demand relationship will clearly reverse, Zhongtai Securities believed. Average annual demands for tire and industrial rubber products in the downstream will increase 6 percent, boosting the industry. In terms of listed companies, as the leading magnate domestically, Jiangxi Black Cat Carbon Black Inc., Ltd. (002068.SZ) has an annual capacity of 1.20 million tons, with greatly flexible performance; Shanxi Yongdong Chemistry Industry Co., Ltd. (002753.SZ) has carbon black capacity of 140,000 tons and also deep processing capacity of 40,000 tons for coal tar.
TOP
[Announcement Interpretation]
○ Huadong Heavy Machinery to acquire two companies, transforming to culture ＆ media industry
------
Wuxi Huadong Heavy Machinery Co., Ltd. (002685.SZ) proposes to acquire the 100 percent equities of Zhongshi Heli Culture ＆ Media Co., Ltd. and Qingyang Culture Media Co., Ltd. respectively through private placement of 8.53 yuan per share and cash, and the transaction price is set at 1.47 billion yuan temporarily. It also plans to raise no more than 300 million yuan through private placement of no less than 8.86 yuan per share. Based on performance commitment, the said two companies will achieve net profit after deduction no less than 91 million and 39 million yuan in 2017 respectively.
Zhongshi Heli Culture ＆ Media mainly covers three businesses of TV theater operation, investment and launch for movie ＆ TV plays, and TV program production; while Qingyang Culture Media is mainly engaged in media agency business, media platform sales, enterprise media consulting business, as well as brand ＆ content interactive marketing.
○ Lingnan Group Holdings buys assets of travel agency and brand hotels
------
Guangzhou Lingnan Group Holdings Company Limited (000524.SZ) plans to acquire 90.45 percent equity of GZL International Travel Agency, 100 percent equity of Garden Hotel Guangzhou and 100 percent of China Hotel by issuing shares at a price of 11.08 yuan per share through private placement and paying in cash, with a total cost of 3.437 billion yuan. Meanwhile, it intends to raise no more than 1.5 billion yuan as supporting funds at the same price through private placement. Net profits of the three companies were 52,720,500 yuan, 43,168,700 yuan and 8,935,800 yuan last year respectively. After the acquisition, the listed company will own famous premium hotels and hotel brands in China such as Garden Hotel, China Hotel and Dongfang Hotel and add domestic famous travel agency brand and business including GZL International Travel Agency.
TOP
○ Yawei Machine Tool extends business to equipment manufacturing of electronic consumption
------
Jiangsu Yawei Machine Tool Co., Ltd. (002559.SZ) plans to acquire 100 percent equity of Dongguan Strong Laser Equipment Co., Ltd. at a cost of 478 million yuan. The performance of Strong Laser Equipment is promised to be 40 million yuan, 50 million yuan and 60 million yuan during 2016 and 2018 respectively. With this acquisition, Yawei Machine Tool extends its business to laser processing equipment of non-metal material of electronic consumption industry, providing core equipment to suppliers of mainstream brands such as Samsung, Huawei, VIVO, OPPO, Xiaomi and LeTV.
○ Jingfeng Phar. acquires 2 firms in phar. industry
------
Hunan Jingfeng Pharmaceutical Co., Ltd. (000908.SZ) plans to acquire 100 percent equity of Shanghai Fangnan Biotechnology Co., Ltd. and 10 percent equity of Ningbo Ainuo Pharmaceutical Technology Co., Ltd. at no more than 135 million yuan. Fangnan Biotechnology possesses manufacturing technique of several matured bulk pharmaceutical chemicals, six challenging patent and potential preparations and its products under research cover major cure fields such as tumor, cardiovascular, autoimmunity and nervous centralis.
○ Hejia explores medical informatization business
------
Sichuan Hejia Co., Ltd. (300273.SZ) signs agreements on using Disease Management Intelligent Analytic and Evaluation System (DMIAES) with the Fifth Affiliated Hospital of Xinjiang Medical University and Yantaishan Hospital respectively. The company will provide DMIAES to thesse two hospitals for data analysis and modeling.
○ An actual controller of PetroChina Jinhong Energy Investment Co., Ltd. (000669.SZ) bought 550,000 shares of the listed company at a price of 16.15-16.31 yuan per share through a company controlled by himself on Sept. 2. The number of the shares accounted for 0.11 percent of the total share capital of the company. The latest stock price is 16.2 yuan per share.
○ Zhejiang Haers Vacuum Containers Co., Ltd. (002615.SZ) plans to raise about 600 million yuan by issuing shares at a price of no less than 16.34 yuan per share through private placement to invest in production line of premium cups of SIGG and intelligent cups. Price of the company's stock was 18.01 yuan per share before trading suspension.
[Trading Trends]
○ Maoye Communication and Network bought through 3 institutional seats
------
The trading volume ranking list on Sept. 2 shows that Maoye Communication and Network Co., Ltd. (000889.SZ) was bought through three institutional seats with a total of 27.547 million yuan, accounting for 10.01 percent of its intraday turnover.
Comment: The company split off commercial retail and real estate business to turn to information intelligent transmission and communication network maintenance with development and application business of mobile Internet software as auxiliary business. Institutions believe that the new principal business of the company is expected to keep growing and its wholly-owned subsidiary Beijing TrustMeDu Sci-Tech Co., Ltd. has been established, which will provide firm technological support for the company to develop clients. Another wholly-owned subsidiary Guangdong Changshi Communications Technology Co. Ltd. has won a bidding, ensuring income security.
[Trading Alarms]
○ General Science Technology and Brilliance Technology to launch IPOs
------
Jiangsu General Science Technology Co., Ltd. will launch IPO at a price of 4.92 yuan per share with an upper limit of 52,000 shares for each subscription account. The PE ratio is 23 times. The company is engaged in tyre products. Brilliance Technology Co., Ltd. will launch IPO at a price of 8.21 yuan per share with an upper limit of 85,000 shares for each subscription account. The PE ratio is 23 times. The company is specialized in software development and service.
[Weekly Review]
○ Small chance in information, small target in investment
------
A billionaire says we should set a small target first, like earning 100 million yuan. Is earning 100 million yuan is a small target? Different people hold different opinions. But the message beneath this remark coincides with what was said in Encouraging Learning written by Xunzi, the famous Confucian philosopher, that a journey of thousands of miles may not be achieved through accumulation of each single step, just as the enormous ocean may not be formed gathering every brook or stream. We do everything from a small thing then we can gain great achievement by accumulation.
This approach to success also fits to A shares at present. The market kept fluctuating at a narrow range and hotspots of the market were weak in continuity last week. But just under this market situation, sectors and themes were extraordinarily sensitive to information. SSN repeatedly reported PPP concept in the first half of last week. In terms of emerging industries, OLED and Internet of Things, which SSN reported, also showed strong performance amid fluctuation. From the angle of inclusive finance, we pointed out the significant responsibility of petty loan in the system on Sept. 1, then price of relevant individual stocks surged sharply on the afternoon of the next day.
There is always success in the stock market. SSN may not help you earn 100 million yuan, but maybe a prospective report will help you grasp a small chance; or a timely rumor denial helps you know the situation; or a continuous monitoring helps your stick to holding the stocks. What we can do is only to discover a small chance in the information to help you achieve a small target in investment via professional interpretation into information.
TOP
○ U.S. and China reach many agreements to deal with overcapacity and climatic changes
○ Dyeing charges greatly increase, Carbon black price likely to increase
○ Huadong Heavy Machinery transforms to culture ＆ media industry, Lingnan Group Holdings steps in tourism industry
○ Yawei Machine Tool extends electronic consumption, Jingfeng Phar. carries out inter-industrial merging
[SSN Focus]
○ U.S. and China reach many agreements to deal with overcapacity and climatic changes
------
Chinese President Xi Jinping on Sep. 3 met the U.S. President Obama coming to China for G20 summit in Hangzhou city, and both parties have reached many agreements in the meeting, according to the Xinhua News Agency. In terms of structural reform in the industrial field, both the U.S. and China realize that overcapacity in steel and other industries is a global issue, requiring collective efforts; both parties will work together to deal with such issue in electrolytic aluminum field worldwide. They commit to popularize and promote the best experience of PPP mode in their own countries, and agree to constantly reinforce the cooperation in this field regarding network security. On that day, they submitted and filed the approvals to the UN one by one, making the number of contracting parties of Paris Agreement officially approving climatic changes increase to 26.
Comment: Similar to steel, electrolytic aluminum is also one of the overcapacity industries in China, and the government has issued policies and opinions on de-overcapacity and demand expansion for many times. Institutions are optimistic about Yunnan Aluminium Co., Ltd. (000807.SZ), Henan Shenhuo Coal＆Power Co., Ltd. (000933.SZ) and Henan Zhongfu Industrial Co., Ltd. (600595.SH) which are low in costs with large electrolytic aluminum capacities per share. Additionally, support to Paris Agreement from the U.S. and China has expanded the way to make the agreement effective at the end of this year. Institutions are also optimistic about environmental protection companies having deployed in carbon emission permit trading and industrial energy savings.
[SSN Selection]
○ Analysis and research on Chinese-funded conceptual stocks' turn back will continue to be promoted, and the existing policies will not change, press spokesman of China Securities Regulatory Commission indicated on Sep. 2.
○ Subsidies for new energy automobile will be adjusted, and thresholds will be raised to force technological innovation, officials of many ministries indicated in the automobile industrial development forum at weekend.
○ Five measures will be taken to promote domestic trade circulation reform, and a 13th Five-Year planning will be released for this industry, according to Ministry of Commerce on Sep. 2.
○ Pilots for deferred commercial pension insurance based on individual income tax is likely to implement within this year, and overall individual income tax reform scheme has been submitted to the State Council, based on information from The Economic Observer.
○ Many chip providers raise the price of memory chip, as new iPhone going to be launched will enhance the demands, media reported.
○ The non-agricultural employment data of the U.S. released on Sep. 2 did not reach the market expectation, and most of traders expect that the Fed may raise the rate in December instead of September.
TOP
[Industry Information]
○ Many pressures on environmental protection field raise costs, dyeing charges greatly increase
------
Boosted by regulations for environmental protection industry and increased dye costs, many dyeing enterprises in Jiaxing city have raised the price of 1,000 to 2,000 yuan per ton since September, up 10 to 20 percent, SSN learnt. Those in Suzhou and surrounding cities have increased the dyeing charges at different degrees in August.
Comment: Along with the arriving peak seasons of September and October, logged orders caused by shutdowns of downstream enterprises will gradually ease, and the dyeing industry will see opportunity for prospective improvement, institutions expect. In addition, with stricter regulations in the environmental protection industry, dye price will keep firm in a short term, supporting the dyeing charges facing increased costs. Among listed companies, Zhejiang Hangmin Co., Ltd. (600987.SH) is a dyeing magnate with annual capacity of nearly 1 billion meters; Zhejiang Mizuda Printing＆Dyeing Group Co., Ltd. (002034.SZ) can produce the dye of 50 million meters annually.
○ Carbon black price soars by 5 pct., price likely to increase in September
------
Promoted by increased raw materials price and enterprises' overhaul, carbon black price recently increases by 200 to 300 yuan per ton, up nearly 5 percent, with an accumulative growth of 18 percent since this year. Referring to current carbon black N330, its price is usually 4,000 to 5,000 yuan per ton, and carbon black price of related manufacturers is expected to increase during stabilization in September.
Comment: Capacity of carbon black industry is likely to decline over 2 percent annually from 2016 to 2020, and supply ＆ demand relationship will clearly reverse, Zhongtai Securities believed. Average annual demands for tire and industrial rubber products in the downstream will increase 6 percent, boosting the industry. In terms of listed companies, as the leading magnate domestically, Jiangxi Black Cat Carbon Black Inc., Ltd. (002068.SZ) has an annual capacity of 1.20 million tons, with greatly flexible performance; Shanxi Yongdong Chemistry Industry Co., Ltd. (002753.SZ) has carbon black capacity of 140,000 tons and also deep processing capacity of 40,000 tons for coal tar.
TOP
[Announcement Interpretation]
○ Huadong Heavy Machinery to acquire two companies, transforming to culture ＆ media industry
------
Wuxi Huadong Heavy Machinery Co., Ltd. (002685.SZ) proposes to acquire the 100 percent equities of Zhongshi Heli Culture ＆ Media Co., Ltd. and Qingyang Culture Media Co., Ltd. respectively through private placement of 8.53 yuan per share and cash, and the transaction price is set at 1.47 billion yuan temporarily. It also plans to raise no more than 300 million yuan through private placement of no less than 8.86 yuan per share. Based on performance commitment, the said two companies will achieve net profit after deduction no less than 91 million and 39 million yuan in 2017 respectively.
Zhongshi Heli Culture ＆ Media mainly covers three businesses of TV theater operation, investment and launch for movie ＆ TV plays, and TV program production; while Qingyang Culture Media is mainly engaged in media agency business, media platform sales, enterprise media consulting business, as well as brand ＆ content interactive marketing.
○ Lingnan Group Holdings buys assets of travel agency and brand hotels
------
Guangzhou Lingnan Group Holdings Company Limited (000524.SZ) plans to acquire 90.45 percent equity of GZL International Travel Agency, 100 percent equity of Garden Hotel Guangzhou and 100 percent of China Hotel by issuing shares at a price of 11.08 yuan per share through private placement and paying in cash, with a total cost of 3.437 billion yuan. Meanwhile, it intends to raise no more than 1.5 billion yuan as supporting funds at the same price through private placement. Net profits of the three companies were 52,720,500 yuan, 43,168,700 yuan and 8,935,800 yuan last year respectively. After the acquisition, the listed company will own famous premium hotels and hotel brands in China such as Garden Hotel, China Hotel and Dongfang Hotel and add domestic famous travel agency brand and business including GZL International Travel Agency.
TOP
○ Yawei Machine Tool extends business to equipment manufacturing of electronic consumption
------
Jiangsu Yawei Machine Tool Co., Ltd. (002559.SZ) plans to acquire 100 percent equity of Dongguan Strong Laser Equipment Co., Ltd. at a cost of 478 million yuan. The performance of Strong Laser Equipment is promised to be 40 million yuan, 50 million yuan and 60 million yuan during 2016 and 2018 respectively. With this acquisition, Yawei Machine Tool extends its business to laser processing equipment of non-metal material of electronic consumption industry, providing core equipment to suppliers of mainstream brands such as Samsung, Huawei, VIVO, OPPO, Xiaomi and LeTV.
○ Jingfeng Phar. acquires 2 firms in phar. industry
------
Hunan Jingfeng Pharmaceutical Co., Ltd. (000908.SZ) plans to acquire 100 percent equity of Shanghai Fangnan Biotechnology Co., Ltd. and 10 percent equity of Ningbo Ainuo Pharmaceutical Technology Co., Ltd. at no more than 135 million yuan. Fangnan Biotechnology possesses manufacturing technique of several matured bulk pharmaceutical chemicals, six challenging patent and potential preparations and its products under research cover major cure fields such as tumor, cardiovascular, autoimmunity and nervous centralis.
○ Hejia explores medical informatization business
------
Sichuan Hejia Co., Ltd. (300273.SZ) signs agreements on using Disease Management Intelligent Analytic and Evaluation System (DMIAES) with the Fifth Affiliated Hospital of Xinjiang Medical University and Yantaishan Hospital respectively. The company will provide DMIAES to thesse two hospitals for data analysis and modeling.
○ An actual controller of PetroChina Jinhong Energy Investment Co., Ltd. (000669.SZ) bought 550,000 shares of the listed company at a price of 16.15-16.31 yuan per share through a company controlled by himself on Sept. 2. The number of the shares accounted for 0.11 percent of the total share capital of the company. The latest stock price is 16.2 yuan per share.
○ Zhejiang Haers Vacuum Containers Co., Ltd. (002615.SZ) plans to raise about 600 million yuan by issuing shares at a price of no less than 16.34 yuan per share through private placement to invest in production line of premium cups of SIGG and intelligent cups. Price of the company's stock was 18.01 yuan per share before trading suspension.
[Trading Trends]
○ Maoye Communication and Network bought through 3 institutional seats
------
The trading volume ranking list on Sept. 2 shows that Maoye Communication and Network Co., Ltd. (000889.SZ) was bought through three institutional seats with a total of 27.547 million yuan, accounting for 10.01 percent of its intraday turnover.
Comment: The company split off commercial retail and real estate business to turn to information intelligent transmission and communication network maintenance with development and application business of mobile Internet software as auxiliary business. Institutions believe that the new principal business of the company is expected to keep growing and its wholly-owned subsidiary Beijing TrustMeDu Sci-Tech Co., Ltd. has been established, which will provide firm technological support for the company to develop clients. Another wholly-owned subsidiary Guangdong Changshi Communications Technology Co. Ltd. has won a bidding, ensuring income security.
[Trading Alarms]
○ General Science Technology and Brilliance Technology to launch IPOs
------
Jiangsu General Science Technology Co., Ltd. will launch IPO at a price of 4.92 yuan per share with an upper limit of 52,000 shares for each subscription account. The PE ratio is 23 times. The company is engaged in tyre products. Brilliance Technology Co., Ltd. will launch IPO at a price of 8.21 yuan per share with an upper limit of 85,000 shares for each subscription account. The PE ratio is 23 times. The company is specialized in software development and service.
[Weekly Review]
○ Small chance in information, small target in investment
------
A billionaire says we should set a small target first, like earning 100 million yuan. Is earning 100 million yuan is a small target? Different people hold different opinions. But the message beneath this remark coincides with what was said in Encouraging Learning written by Xunzi, the famous Confucian philosopher, that a journey of thousands of miles may not be achieved through accumulation of each single step, just as the enormous ocean may not be formed gathering every brook or stream. We do everything from a small thing then we can gain great achievement by accumulation.
This approach to success also fits to A shares at present. The market kept fluctuating at a narrow range and hotspots of the market were weak in continuity last week. But just under this market situation, sectors and themes were extraordinarily sensitive to information. SSN repeatedly reported PPP concept in the first half of last week. In terms of emerging industries, OLED and Internet of Things, which SSN reported, also showed strong performance amid fluctuation. From the angle of inclusive finance, we pointed out the significant responsibility of petty loan in the system on Sept. 1, then price of relevant individual stocks surged sharply on the afternoon of the next day.
There is always success in the stock market. SSN may not help you earn 100 million yuan, but maybe a prospective report will help you grasp a small chance; or a timely rumor denial helps you know the situation; or a continuous monitoring helps your stick to holding the stocks. What we can do is only to discover a small chance in the information to help you achieve a small target in investment via professional interpretation into information.
TOP
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