[Today's Guide]
○ Shenzhen introduces subsidies on new energy vehicles, national policies expected to implement
○ China Optical Fiber Communication Seminar 2016 to held soon, domestic antimony prices speed up in hiking
○ China Shipping Haisheng sells shipping assets to accelerate transformation to healthcare, Henan Mingtai Al. Industrial to invest in automotive aluminum alloy project
○ Hongsheng Technology to acquire house rent assets, Qiyuan Mechanical and Electrical Equipment bought through two institutional seats
[SSN Focus]
○ Shenzhen introduces subsidies on new energy vehicles, national policies expected to implement
------
The policy on financial supporting to the promotion and application of new energy vehicles in Shenzhen in 2016 was released on Sept. 5. Compared with last year and in terms of purely electric passenger vehicles, local subsidies on vehicles with medium and low mileage decreased while those on vehicles with a mileage of 250 kilometers and more remained unchanged. On the whole, despite the decrease in subsidies, the new policy maintains the subsidies on high-end vehicles and fuel cell vehicles unchanged.
Comment: Institutes believe that the adjustment to the subsidies meets the development trend of the industry. The government is expected to release other supporting policies, such as no plate restrictions on new energy vehicles and the implementation of carbon quota management. It is expected that national subsidy policies will be introduced in short term and the threshold for subsidies will be raised significantly. It will benefit leading enterprises with core technologies and size effects. Zhongshan Broad-Ocean Motor Co., Ltd. (002249.SZ) has reached cooperation with Ballard in fuel cell technologies. Zhengzhou Yutong Bus Co., Ltd. (600066.SH) owns the most complete energy-saving and new energy passenger vehicle types in China.
[SSN Selection]
○ The Ministry of Land and Resources (MLR) indicated that China will be a leader in deep-earth exploration, deep-sea exploration, deep-space observation and fully implement the explorations and observations during the 13th Five-year Plan period.
○ Guohua Military-Civil Integrated Industrial Development Fund initiated by China Aerospace Science and Technology Corporation was established on Sept. 5 with the phase-I size of 30.2 billion yuan.
○ Tu Youyu team disclosed the latest research progress on Sept. 5, saying that besides artemisinin, there are other anti-malarial ingredients in artemisia carvifolia.
○ Tencent Holdings Limited (00700.HK) has become the company with the biggest market value in Asia with 1.99 trillion HK dollars. Foreign capitals are rosy about its mobile phone games, payment and other businesses with high growth.
○ The contracted sales of properties of China Evergrande Group (03333.HK) for August amounted to 48.27 billion yuan, representing an increase of 12.2 percent from last month and hitting a new high in the industry.
TOP
[Industry Information]
○ China Optical Fiber Communication Seminar 2016 to held soon, demands from operators to boost industry
------
China Optical Fiber Communication Seminar 2016 will be held on Sept. 8 in Shenzhen. Experts from the Ministry of Industry and Information Technology (MIIT), communication operators and industry leaders will attend the seminar to share forefront innovative technologies and solutions. Benefiting from the fast construction of 4G network and the "Broadband China" initiative, the optical fiber communication has seen rapid expansion in demands. Yangtze Optical Fibre and Cable Joint Stock Limited Company (06869.HK) has surged about 30 percent in the last three trading days to a record high since its listing.
Comment: Institutions believe that as operators' demands for optical cable lines remain unchanged in the next few years, and the government took anti-dumping measures on optical wand, optical fiber prices will continue to rise. Leading optical fiber enterprises will see significant improvement in price, sales volume and market share. As for companies, Wuhan Yangtze Communication Industry Group Co., Ltd. (600345.SH) has a 17.58 percent stake in Yangtze Optical Fibre and Cable, and is expected to benefit from surging earnings of the latter. Accelink Technologies Co., Ltd. (002281.SZ) is a leading optoelectronic device manufacturer in China.
○ Domestic antimony prices speed up in hiking, industry to see profit improvement
------
SSN learnt that the prices of antimony concentrates, antimony oxides and antimony ingots surged by 1,500 yuan/tonne on Sept. 5, far higher than an increase of 500 yuan each time in the past and representing an increase of nearly 4 percent. The prices of the above products have surged by 42 percent, 32 percent and 38 percent since the beginning of the year. In addition, the international antimony prices also hiked.
Comment: securities company's research report shows that since 2015, the closed or reduced capacity of antimony smelting has reached more than 50,000 tons, about 30 percent of the output. The supply side reduction is significant. In addition, with low inventory and environment protection pressure, the increase of antimony price is obvious. In listed companies, Tibet Huayu Mining Co., Ltd. (601020.SH) is primarily engaged in lead and antimony concentrates, and revenue from this business accounts for 76 percent of the total revenue; Hunan Gold Corporation Limited (002155.SZ) possess antimony reserves of about 220,000 tons.
TOP
[Announcement Interpretation]
○ China Shipping Haisheng sells shipping assets, accelerating transformation to health care
------
China Shipping Haisheng Co., Ltd. (600896.SH) proposes to inject all its shipping business and assets into the newly established wholly owned subsidiary Hainan Haisheng, and then transfer the entire equities of Hainan Haisheng to companies under China COSCO Shipping Corporation Limited. Upon completion of the transaction, the listed company will receive in total 1,479 million yuan, and split the continuous deficit making shipping business and assets, which will enable the company to centralize its resources on accelerate the development of healthcare business.
○ Henan Mingtai Al.Industrial to invest in automotive aluminum alloy project
------
Henan Mingtai Al. Industrial Co., Ltd. (601677.SH) proposes to issue shares through private placement at no less than 14.16 yuan per share to raise 1,215 million yuan, which will be used for automotive aluminum alloy project with annual output of 125,000 tons. When reached the designed output, the estimated annual net profits will be 140 million yuan. The company indicates that as new energy vehicle requires lighter car body and longer battery endurance, the automotive aluminum alloy has huge growth potential in the new energy car manufacturing industry.
TOP
○ Hongsheng Technology to acquire house rent assets
------
Xi'An Hongsheng Technology Co., Ltd. (600817.SH) proposes to sell 45 percent equities of Lander Leasing at the valuation of 100 million yuan, and buy 70 percent equities of Xuheng Properties with 6,8913,700 yuan. The major assets of Xuheng Properties are commercial properties and underground parking lot located at Yizhuang Economic and Technological Development Zone, Beijing. Xuheng Properties has entered into long term lease with Meilianmei chain store, and recorded 6,426,100 yuan rental income last year.
○ Guizhou Bailing Group Pharmaceutical to acquire anticancer drug project
------
Guizhou Bailing Group Pharmaceutical Co., ltd. (002424.SZ) has entered into technology transfer contract with Chengdu EDS Bioengineering Technology Co., Ltd. The listed company proposes to acquire the EDS01 project of the latter with 50 million yuan. The project is a gene drug research for head and neck cancer treatment made by the team led by academician Wei Yuquan. Currently, the phase I clinic trial has completed, and phase II clinic trial is in process.
○ China First Heavy Industries (601106.SH) proposes to issue shares at 4.85 yuan per share through private placement to its controlling shareholder China First Heavy Machinery Group Corporation, to raise 1,550 million yuan, which will be used to cover the company's financing gap resulted from repaying entrusted loan of China First Heavy Machinery Group Corporation and receivables and payables.
[Trading Trends]
Qiyuan Mechanical and Electrical Equipment bought through two institutional seats
------
The trading volume ranking list on September 5 shows that Xi'an Qiyuan Mechanical and Electrical Equipment CO., Ltd. (300140.SZ) was bought through two institutional seats with a total of 74,140,000 yuan, accounting for 30 percent of intraday turnover.
Comment: the company is the single platform under the central SOE China Energy Conservation and Environment Protection Group (CECEP). It proposes to issue shares through private placement to CECEP to raise fund to acquire the entire equities of Liuhetianrong. Upon completion of the acquisition, the company will form two main businesses, namely air pollution prevention and control business and equipment manufacturing business. The company is expected to enter rapid development period by leveraging he advantage of the group. The company also possesses environment protection assets such as water treatment, solid waste and soil remediation.
[Trading Alarm]
○ Nusun Landscape to debut IPO
------
Wuhan Nusun Landscape Co., Ltd. (300536.SZ) will offer for subscription at 9.06 yuan per share. The PE ratio of the company is 18 times. The upper limit of subscription is 9,000 shares. The company is primarily engaged in landscaping projects.
TOP
○ Shenzhen introduces subsidies on new energy vehicles, national policies expected to implement
○ China Optical Fiber Communication Seminar 2016 to held soon, domestic antimony prices speed up in hiking
○ China Shipping Haisheng sells shipping assets to accelerate transformation to healthcare, Henan Mingtai Al. Industrial to invest in automotive aluminum alloy project
○ Hongsheng Technology to acquire house rent assets, Qiyuan Mechanical and Electrical Equipment bought through two institutional seats
[SSN Focus]
○ Shenzhen introduces subsidies on new energy vehicles, national policies expected to implement
------
The policy on financial supporting to the promotion and application of new energy vehicles in Shenzhen in 2016 was released on Sept. 5. Compared with last year and in terms of purely electric passenger vehicles, local subsidies on vehicles with medium and low mileage decreased while those on vehicles with a mileage of 250 kilometers and more remained unchanged. On the whole, despite the decrease in subsidies, the new policy maintains the subsidies on high-end vehicles and fuel cell vehicles unchanged.
Comment: Institutes believe that the adjustment to the subsidies meets the development trend of the industry. The government is expected to release other supporting policies, such as no plate restrictions on new energy vehicles and the implementation of carbon quota management. It is expected that national subsidy policies will be introduced in short term and the threshold for subsidies will be raised significantly. It will benefit leading enterprises with core technologies and size effects. Zhongshan Broad-Ocean Motor Co., Ltd. (002249.SZ) has reached cooperation with Ballard in fuel cell technologies. Zhengzhou Yutong Bus Co., Ltd. (600066.SH) owns the most complete energy-saving and new energy passenger vehicle types in China.
[SSN Selection]
○ The Ministry of Land and Resources (MLR) indicated that China will be a leader in deep-earth exploration, deep-sea exploration, deep-space observation and fully implement the explorations and observations during the 13th Five-year Plan period.
○ Guohua Military-Civil Integrated Industrial Development Fund initiated by China Aerospace Science and Technology Corporation was established on Sept. 5 with the phase-I size of 30.2 billion yuan.
○ Tu Youyu team disclosed the latest research progress on Sept. 5, saying that besides artemisinin, there are other anti-malarial ingredients in artemisia carvifolia.
○ Tencent Holdings Limited (00700.HK) has become the company with the biggest market value in Asia with 1.99 trillion HK dollars. Foreign capitals are rosy about its mobile phone games, payment and other businesses with high growth.
○ The contracted sales of properties of China Evergrande Group (03333.HK) for August amounted to 48.27 billion yuan, representing an increase of 12.2 percent from last month and hitting a new high in the industry.
TOP
[Industry Information]
○ China Optical Fiber Communication Seminar 2016 to held soon, demands from operators to boost industry
------
China Optical Fiber Communication Seminar 2016 will be held on Sept. 8 in Shenzhen. Experts from the Ministry of Industry and Information Technology (MIIT), communication operators and industry leaders will attend the seminar to share forefront innovative technologies and solutions. Benefiting from the fast construction of 4G network and the "Broadband China" initiative, the optical fiber communication has seen rapid expansion in demands. Yangtze Optical Fibre and Cable Joint Stock Limited Company (06869.HK) has surged about 30 percent in the last three trading days to a record high since its listing.
Comment: Institutions believe that as operators' demands for optical cable lines remain unchanged in the next few years, and the government took anti-dumping measures on optical wand, optical fiber prices will continue to rise. Leading optical fiber enterprises will see significant improvement in price, sales volume and market share. As for companies, Wuhan Yangtze Communication Industry Group Co., Ltd. (600345.SH) has a 17.58 percent stake in Yangtze Optical Fibre and Cable, and is expected to benefit from surging earnings of the latter. Accelink Technologies Co., Ltd. (002281.SZ) is a leading optoelectronic device manufacturer in China.
○ Domestic antimony prices speed up in hiking, industry to see profit improvement
------
SSN learnt that the prices of antimony concentrates, antimony oxides and antimony ingots surged by 1,500 yuan/tonne on Sept. 5, far higher than an increase of 500 yuan each time in the past and representing an increase of nearly 4 percent. The prices of the above products have surged by 42 percent, 32 percent and 38 percent since the beginning of the year. In addition, the international antimony prices also hiked.
Comment: securities company's research report shows that since 2015, the closed or reduced capacity of antimony smelting has reached more than 50,000 tons, about 30 percent of the output. The supply side reduction is significant. In addition, with low inventory and environment protection pressure, the increase of antimony price is obvious. In listed companies, Tibet Huayu Mining Co., Ltd. (601020.SH) is primarily engaged in lead and antimony concentrates, and revenue from this business accounts for 76 percent of the total revenue; Hunan Gold Corporation Limited (002155.SZ) possess antimony reserves of about 220,000 tons.
TOP
[Announcement Interpretation]
○ China Shipping Haisheng sells shipping assets, accelerating transformation to health care
------
China Shipping Haisheng Co., Ltd. (600896.SH) proposes to inject all its shipping business and assets into the newly established wholly owned subsidiary Hainan Haisheng, and then transfer the entire equities of Hainan Haisheng to companies under China COSCO Shipping Corporation Limited. Upon completion of the transaction, the listed company will receive in total 1,479 million yuan, and split the continuous deficit making shipping business and assets, which will enable the company to centralize its resources on accelerate the development of healthcare business.
○ Henan Mingtai Al.Industrial to invest in automotive aluminum alloy project
------
Henan Mingtai Al. Industrial Co., Ltd. (601677.SH) proposes to issue shares through private placement at no less than 14.16 yuan per share to raise 1,215 million yuan, which will be used for automotive aluminum alloy project with annual output of 125,000 tons. When reached the designed output, the estimated annual net profits will be 140 million yuan. The company indicates that as new energy vehicle requires lighter car body and longer battery endurance, the automotive aluminum alloy has huge growth potential in the new energy car manufacturing industry.
TOP
○ Hongsheng Technology to acquire house rent assets
------
Xi'An Hongsheng Technology Co., Ltd. (600817.SH) proposes to sell 45 percent equities of Lander Leasing at the valuation of 100 million yuan, and buy 70 percent equities of Xuheng Properties with 6,8913,700 yuan. The major assets of Xuheng Properties are commercial properties and underground parking lot located at Yizhuang Economic and Technological Development Zone, Beijing. Xuheng Properties has entered into long term lease with Meilianmei chain store, and recorded 6,426,100 yuan rental income last year.
○ Guizhou Bailing Group Pharmaceutical to acquire anticancer drug project
------
Guizhou Bailing Group Pharmaceutical Co., ltd. (002424.SZ) has entered into technology transfer contract with Chengdu EDS Bioengineering Technology Co., Ltd. The listed company proposes to acquire the EDS01 project of the latter with 50 million yuan. The project is a gene drug research for head and neck cancer treatment made by the team led by academician Wei Yuquan. Currently, the phase I clinic trial has completed, and phase II clinic trial is in process.
○ China First Heavy Industries (601106.SH) proposes to issue shares at 4.85 yuan per share through private placement to its controlling shareholder China First Heavy Machinery Group Corporation, to raise 1,550 million yuan, which will be used to cover the company's financing gap resulted from repaying entrusted loan of China First Heavy Machinery Group Corporation and receivables and payables.
[Trading Trends]
Qiyuan Mechanical and Electrical Equipment bought through two institutional seats
------
The trading volume ranking list on September 5 shows that Xi'an Qiyuan Mechanical and Electrical Equipment CO., Ltd. (300140.SZ) was bought through two institutional seats with a total of 74,140,000 yuan, accounting for 30 percent of intraday turnover.
Comment: the company is the single platform under the central SOE China Energy Conservation and Environment Protection Group (CECEP). It proposes to issue shares through private placement to CECEP to raise fund to acquire the entire equities of Liuhetianrong. Upon completion of the acquisition, the company will form two main businesses, namely air pollution prevention and control business and equipment manufacturing business. The company is expected to enter rapid development period by leveraging he advantage of the group. The company also possesses environment protection assets such as water treatment, solid waste and soil remediation.
[Trading Alarm]
○ Nusun Landscape to debut IPO
------
Wuhan Nusun Landscape Co., Ltd. (300536.SZ) will offer for subscription at 9.06 yuan per share. The PE ratio of the company is 18 times. The upper limit of subscription is 9,000 shares. The company is primarily engaged in landscaping projects.
TOP
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