[Today's Guide]
○Executive meeting of State Council arranges improvement of weak points, more input expected in urban waterlogging prevention
○13th five-year development plan for big data to release, PCB enterprises more likely to raise price
○Nanji E-commerce expands to Internet marketing, Future Technology bought to limit of 5 pct again
○Lancy to develop in pan-fashion industry, SG Automotive Group cooperates with Samsung SDI
[SSN Focus]
○Executive meeting of State Council arranges improvement of weak points, more input expected in urban waterlogging prevention
------
The executive meeting of the State Council held on Sept.5 made arrangement in improving weak points of key fields. It is proposed in the meeting to take advantage of current opportunities, focus on key areas like poverty alleviation, post-disaster reconstruction and the reinforcement of medium- and small-scale water conservancy projects, and optimize policy mix. It is also proposed to bring forth new ideas in financing, step up the budget of central government in weak links of water conservancy, the construction of urban waterlogging prevention facilities and etc., and attach importance to the application of Public-Private-Partnership (PPP) model. In addition, a notice was released on the official website of the National Development and Reform Commission (NDRC), requiring local governments submitting typical cases of PPP projects in traditional infrastructure areas.
Comment: Waterlogging attacked many cities in China this summer. Besides weather factors, outdated drainage system is also an important reason and it is a matter of great urgency to improve the weak points. As sorted out by SSN, provinces like Shandong, Sichuan and Heilongjiang all have made progress in key projects concerning underground comprehensive pipelines after the Ministry of Housing and Urban-Rural Development (MOHURD) issued notice on Aug. 24 proposing advancing the construction of urban underground comprehensive pipelines to improve drainage and waterlogging prevention abilities. According to announced semiyearly reports, Fujian Newchoice Pipe Technology Co., Ltd. (300198.SZ) actively participates in the construction of sponge city and PPP projects concerning municipal drainage; Shandong Longquan Pipeline Engineering Co., Ltd. (002671.SZ) is supplying goods for the construction of underground pipe gallery in Zibo city, Shandong province; Guangdong No.2 Hydropower Engineering Company, Ltd. (002060.SZ) takes full advantage of the development opportunities brought by the promotion of PPP model.
[SSN Selection]
○The State-owned Assets Supervision and Administration Commission (SASAC) on Sept. 6 convened a forum on the reorganization, cooperation and integration of central state-owned enterprises (SOEs). Eight SOEs have decided to cooperate or coordinate with each other in relevant areas.
○Wang Hong, assistant general manager of Shenzhen Stock Exchange, recently visited Guangdong SASAC. Zhou Xingting, vice director of Guangdong SASAC, vowed to improve the securitization rate of state-owned capitals.
○The Ministry of Civil Affairs and the National Development and Reform Commission (NDRC) have decided to jointly carry out the piloting work for the second batch of state-run nursing homes for the aged.
○Two departments recently joined hands in printing and distributing the 13th five-year development plan for the surveying, mapping and geo-information industry, requiring higher contribution rate of the geo-information industry to national economy.
○Securities margin saw a net outflow of 20.5 billion yuan last week, and the average daily balance of the settlement for securities trading declined to a new low since March 2015.
○Intel announced pending acquisition of computer vision company Movidiuson on Sept. 6. The graphics processor produced by Movidiuson has been used by Lenovo to develop next-generation virtual reality products.
TOP
[Industry Information]
○13th five-year development plan for big data to release, industrial scale to step up again
------
Telecom fraud cases are frequently reported in recent years, and the root cause is information leakage. SSN has learnt that the Ministry of Industry and Information Technology (MIIT) will roll out the 13th Five-year Development Plan for the Big Data Industry within 2016. The application scope of personal information being collected and how the collected information can be used will be defined; the service industry is encouraged to utilize big data in establishing brands as well as carrying out targeted marketing and customized service; the application of big data in the R＆D, manufacturing, industrial chain and etc. of industries will be advanced.
Comment: The White Paper on China Big Data Exchange expects that China's big data industry will reach a scale of 248.5 billion yuan by end 2016. Along with the implementation of various supporting policies, the industrial scale might reach 1,362.6 billion yuan by 2020. As to listed companies, Beijing TRS Information Technology Co., Ltd. (300229.SZ) is a leading big data technology and service provider in China; Xiamen Meiya Pico Information Co., Ltd. (300188.SZ) entered into agreement with telecommunications company Huawei on deepening cooperation in the big data of public security last year; Shanghai DragonNet Technology Co., Ltd. (300245.SZ) has been actively working on its big data cloud platform products.
○Surging materials and increasing demand to drive PCB enterprises raising price
------
SSN learnt that thanks to the surging price of copper-clad plates (CCL) and the increasing demand in the vehicle market in the downstream, PCB enterprises are expected to raise the price. It is reported that major CCL manufacturers have raised the prices by 5 to 10 percent since mid-August and are expected to further raise the prices in the future. The stock price of a Hong Kong-listed company Kingboard Chemical Holdings Limited (00148.HK), a CCL leader, has surged over 100 percent in recent year and hit a new high on Sept. 6.
Comment: As CCL and other raw materials account for nearly 60 percent of the PCB cost, enterprises are expected to transfer the cost increase. As the certification of PCB products takes a long time, enterprises in the downstream are unlikely to change suppliers and are more likely to negotiate with customers. In terms of listed companies, WUS Printed Circuit Co., Ltd. (002463.SZ) is principally engaged in PCB for enterprise communication and vehicles with rapid growth. Shenzhen Fastprint Circuit Tech Co., Ltd. (002436.SZ) is principally engaged in the production of PCB samples. Its IC carrier business is under smooth progress.
TOP
[Announcement Interpretation]
○Nanji E-commerce acquires Internet marketing enterprise
------
Nanji E-commerce Co., Ltd. (002127.SZ) plans to acquire 100 percent equity of Beijing Time Internet Technology Co., Ltd. by issuing shares at a price of 8.29 yuan per share through private placement and paying in cash, which totally cost the company 956 million yuan. In addition, it will raise supporting funds of 400 million yuan at most by issuing shares at a price of 9.05 yuan per share through private placement. Time Internet Technology is an Internet marketing server for mobile Internet. The counterparty promises its net profit after deduction of extraordinary gains and losses will not be less than 68 million yuan, 90 million yuan and 117 million yuan in next three years respectively.
○Ruilai Jiayu Investment Enterprise buys shares of Future Technology to limit of 5 pct. again
------
Guangxi Future Technology Co., Ltd. (600556.SH) announced that the company's shareholder Shenzhen Ruilai Jiayu Investment Enterprise (Limited Partnership) increased its shareholding by 19,739,800 shares (accounting for 5 percent of the company's total share capital) at an average price of 16.26 yuan per share with total worth of 321 million yuan during Aug. 11 and Sept. 5. After that, Ruilai Jiayu Investment Enterprise will hold 10 percent stake in Future Technology. The company said that it purchased the listed company's shares due to expectation on its future prospect and would continue to increase shareholding in next 12 months at no less than 50 million yuan. The latest stock price of the company is 15.34 yuan per share.
TOP
○Lancy to cooperate with Hana Bank to develop in pan-fashion industry
------
Lancy Asset Management Co., Ltd., wholly-owned subsidiary of Lancy Co., Ltd. (002612.SZ), intends to cooperate with Hana Bank through increasing investment to advance and consolidate the ecosystem of pan-fashion industry and further dig into Korean fashion and consumption industrial resources. The company and Hana Bank will contribute 650 million yuan and 250 million respectively. It also plans to set up a joint venture in Tianjin Free Trade Zone, paving way for introducing Korean fashion resources.
○SG Automotive Group cooperates with Samsung to develop power battery business
------
Liaoning SG Automotive Group Co., Ltd. (600303.SH) plans to invest 35 million yuan, accounting for 35 percent of total investment, to establish a joint venture company in Dalian with Dongruan Ruichi Automotive Technology (Shanghai) Co., Ltd. and Samsung SDI Co., Ltd. The joint venture company will produce and sell power battery package and battery charger of new energy vehicle.
○President of Far East Smarter Energy increases shareholding
------
President of Far East Smarter Energy Co., Ltd. (600869.SH) bought 503,600 shares at an average price of 9.23 yuan per share on Sept. 2, accounting for 0.02 percent of the company's total share capital. It intends to increase shareholding by no more than 2 percent at the price ranging from 9 yuan to 15 yuan per share in next 12 months, which will cost no less than 30 million yuan. The latest stock price is 9.56 yuan per share.
TOP
○Executive meeting of State Council arranges improvement of weak points, more input expected in urban waterlogging prevention
○13th five-year development plan for big data to release, PCB enterprises more likely to raise price
○Nanji E-commerce expands to Internet marketing, Future Technology bought to limit of 5 pct again
○Lancy to develop in pan-fashion industry, SG Automotive Group cooperates with Samsung SDI
[SSN Focus]
○Executive meeting of State Council arranges improvement of weak points, more input expected in urban waterlogging prevention
------
The executive meeting of the State Council held on Sept.5 made arrangement in improving weak points of key fields. It is proposed in the meeting to take advantage of current opportunities, focus on key areas like poverty alleviation, post-disaster reconstruction and the reinforcement of medium- and small-scale water conservancy projects, and optimize policy mix. It is also proposed to bring forth new ideas in financing, step up the budget of central government in weak links of water conservancy, the construction of urban waterlogging prevention facilities and etc., and attach importance to the application of Public-Private-Partnership (PPP) model. In addition, a notice was released on the official website of the National Development and Reform Commission (NDRC), requiring local governments submitting typical cases of PPP projects in traditional infrastructure areas.
Comment: Waterlogging attacked many cities in China this summer. Besides weather factors, outdated drainage system is also an important reason and it is a matter of great urgency to improve the weak points. As sorted out by SSN, provinces like Shandong, Sichuan and Heilongjiang all have made progress in key projects concerning underground comprehensive pipelines after the Ministry of Housing and Urban-Rural Development (MOHURD) issued notice on Aug. 24 proposing advancing the construction of urban underground comprehensive pipelines to improve drainage and waterlogging prevention abilities. According to announced semiyearly reports, Fujian Newchoice Pipe Technology Co., Ltd. (300198.SZ) actively participates in the construction of sponge city and PPP projects concerning municipal drainage; Shandong Longquan Pipeline Engineering Co., Ltd. (002671.SZ) is supplying goods for the construction of underground pipe gallery in Zibo city, Shandong province; Guangdong No.2 Hydropower Engineering Company, Ltd. (002060.SZ) takes full advantage of the development opportunities brought by the promotion of PPP model.
[SSN Selection]
○The State-owned Assets Supervision and Administration Commission (SASAC) on Sept. 6 convened a forum on the reorganization, cooperation and integration of central state-owned enterprises (SOEs). Eight SOEs have decided to cooperate or coordinate with each other in relevant areas.
○Wang Hong, assistant general manager of Shenzhen Stock Exchange, recently visited Guangdong SASAC. Zhou Xingting, vice director of Guangdong SASAC, vowed to improve the securitization rate of state-owned capitals.
○The Ministry of Civil Affairs and the National Development and Reform Commission (NDRC) have decided to jointly carry out the piloting work for the second batch of state-run nursing homes for the aged.
○Two departments recently joined hands in printing and distributing the 13th five-year development plan for the surveying, mapping and geo-information industry, requiring higher contribution rate of the geo-information industry to national economy.
○Securities margin saw a net outflow of 20.5 billion yuan last week, and the average daily balance of the settlement for securities trading declined to a new low since March 2015.
○Intel announced pending acquisition of computer vision company Movidiuson on Sept. 6. The graphics processor produced by Movidiuson has been used by Lenovo to develop next-generation virtual reality products.
TOP
[Industry Information]
○13th five-year development plan for big data to release, industrial scale to step up again
------
Telecom fraud cases are frequently reported in recent years, and the root cause is information leakage. SSN has learnt that the Ministry of Industry and Information Technology (MIIT) will roll out the 13th Five-year Development Plan for the Big Data Industry within 2016. The application scope of personal information being collected and how the collected information can be used will be defined; the service industry is encouraged to utilize big data in establishing brands as well as carrying out targeted marketing and customized service; the application of big data in the R＆D, manufacturing, industrial chain and etc. of industries will be advanced.
Comment: The White Paper on China Big Data Exchange expects that China's big data industry will reach a scale of 248.5 billion yuan by end 2016. Along with the implementation of various supporting policies, the industrial scale might reach 1,362.6 billion yuan by 2020. As to listed companies, Beijing TRS Information Technology Co., Ltd. (300229.SZ) is a leading big data technology and service provider in China; Xiamen Meiya Pico Information Co., Ltd. (300188.SZ) entered into agreement with telecommunications company Huawei on deepening cooperation in the big data of public security last year; Shanghai DragonNet Technology Co., Ltd. (300245.SZ) has been actively working on its big data cloud platform products.
○Surging materials and increasing demand to drive PCB enterprises raising price
------
SSN learnt that thanks to the surging price of copper-clad plates (CCL) and the increasing demand in the vehicle market in the downstream, PCB enterprises are expected to raise the price. It is reported that major CCL manufacturers have raised the prices by 5 to 10 percent since mid-August and are expected to further raise the prices in the future. The stock price of a Hong Kong-listed company Kingboard Chemical Holdings Limited (00148.HK), a CCL leader, has surged over 100 percent in recent year and hit a new high on Sept. 6.
Comment: As CCL and other raw materials account for nearly 60 percent of the PCB cost, enterprises are expected to transfer the cost increase. As the certification of PCB products takes a long time, enterprises in the downstream are unlikely to change suppliers and are more likely to negotiate with customers. In terms of listed companies, WUS Printed Circuit Co., Ltd. (002463.SZ) is principally engaged in PCB for enterprise communication and vehicles with rapid growth. Shenzhen Fastprint Circuit Tech Co., Ltd. (002436.SZ) is principally engaged in the production of PCB samples. Its IC carrier business is under smooth progress.
TOP
[Announcement Interpretation]
○Nanji E-commerce acquires Internet marketing enterprise
------
Nanji E-commerce Co., Ltd. (002127.SZ) plans to acquire 100 percent equity of Beijing Time Internet Technology Co., Ltd. by issuing shares at a price of 8.29 yuan per share through private placement and paying in cash, which totally cost the company 956 million yuan. In addition, it will raise supporting funds of 400 million yuan at most by issuing shares at a price of 9.05 yuan per share through private placement. Time Internet Technology is an Internet marketing server for mobile Internet. The counterparty promises its net profit after deduction of extraordinary gains and losses will not be less than 68 million yuan, 90 million yuan and 117 million yuan in next three years respectively.
○Ruilai Jiayu Investment Enterprise buys shares of Future Technology to limit of 5 pct. again
------
Guangxi Future Technology Co., Ltd. (600556.SH) announced that the company's shareholder Shenzhen Ruilai Jiayu Investment Enterprise (Limited Partnership) increased its shareholding by 19,739,800 shares (accounting for 5 percent of the company's total share capital) at an average price of 16.26 yuan per share with total worth of 321 million yuan during Aug. 11 and Sept. 5. After that, Ruilai Jiayu Investment Enterprise will hold 10 percent stake in Future Technology. The company said that it purchased the listed company's shares due to expectation on its future prospect and would continue to increase shareholding in next 12 months at no less than 50 million yuan. The latest stock price of the company is 15.34 yuan per share.
TOP
○Lancy to cooperate with Hana Bank to develop in pan-fashion industry
------
Lancy Asset Management Co., Ltd., wholly-owned subsidiary of Lancy Co., Ltd. (002612.SZ), intends to cooperate with Hana Bank through increasing investment to advance and consolidate the ecosystem of pan-fashion industry and further dig into Korean fashion and consumption industrial resources. The company and Hana Bank will contribute 650 million yuan and 250 million respectively. It also plans to set up a joint venture in Tianjin Free Trade Zone, paving way for introducing Korean fashion resources.
○SG Automotive Group cooperates with Samsung to develop power battery business
------
Liaoning SG Automotive Group Co., Ltd. (600303.SH) plans to invest 35 million yuan, accounting for 35 percent of total investment, to establish a joint venture company in Dalian with Dongruan Ruichi Automotive Technology (Shanghai) Co., Ltd. and Samsung SDI Co., Ltd. The joint venture company will produce and sell power battery package and battery charger of new energy vehicle.
○President of Far East Smarter Energy increases shareholding
------
President of Far East Smarter Energy Co., Ltd. (600869.SH) bought 503,600 shares at an average price of 9.23 yuan per share on Sept. 2, accounting for 0.02 percent of the company's total share capital. It intends to increase shareholding by no more than 2 percent at the price ranging from 9 yuan to 15 yuan per share in next 12 months, which will cost no less than 30 million yuan. The latest stock price is 9.56 yuan per share.
TOP
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