[Today's Guide]
○ 13th Five-year plan on new materials basically completed, focus on breakthroughs in application bottleneck
○ Parking lot construction receives policy support, Google's parent company develops diabetes treatment
○ Jinan Diesel Engine to injected with financial assets from CNPC, Three Gorges Water Conservancy and Electric Power bought by Three Gorges Capital and related party to 5 percent threshold
○ Infinova proposes to acquire Perfect Consulting, Blackcow Food proposes to raise fund to develop OLED business
[SSN Focus]
○ 13th Five-year plan on new materials basically completed, focus on breakthroughs in application bottleneck
------
The 13th Five-year Plan on new material has basically completed and is under report process, indicated Chang Guowu, director of the comprehensive division of the raw materials department of the Ministry of Industry and Information Technology (MIIT), at the closing ceremony of 2016 China Nanjing New Materials Capital ＆ Technology Summit on Sept. 13. China has developed well in some cutting-edge new materials. And it will continue to develop its advantages in graphene and superconducting materials.
Comment: As new materials play an important role in national economy and national defense, all developed countries have made new material one of the key technologies that should be given priority in the 21st century, and made strategic plans and heavy investment in the field. In the graphene industry, as technologies become mature, there have been large-scale graphene products entering into the lithium battery cathode materials, electronics thermal film and other industry chains. Superconducting material is a major material for quantum computer. Institutions are optimistic that it will benefit from the rise of quantum technology. Jiangsu Etern Co., Ltd. (600105.SH) has produced the second-generation high-temperature superconducting strip with 1,000 meter long. Tianjin Benefo Tejing Electric Co., Ltd. (600468.SH) provides a favorable environment for the development, production and marketing for the superconducting wire industry by acquiring Beijing Innost Superconducting Technology Co., Ltd. and Suzhou Guanlong Electromagnetic Wire Co., Ltd.
[SSN Selection]
○ The August macroeconomic data released by the National Bureau of Statistics (NBC) on Sept. 13 picked up. Private investment saw its monthly growth rise above zero.
○ The People's Bank of China (PBoC) resumed 28-day reverse repo on Sept. 13 at an interest rate 5 base points lower than last time in February this year.
○ The National Development and Reform Commission (NDRC) on Sept. 13 released the guideline for building China-Mongolia-Russia economic corridor. It is the first guideline for multilateral cooperation under the framework of the "Belt and Road" initiative.
○ The Ministry of Commerce and other two departments released categories to encourage import services, including virtual reality technology and treatment and remediation of polluted solid.
○ Securities margin recorded a net withdrawal of 23 billion yuan last week. It is the third straight week that saw net withdrawal.
○ The Postal Savings Bank of China (PSBC) announced its plan to issue 12.1 billion shares in Hong Kong on Sept. 14 and go listed on the main board of Hong Kong Exchanges and Clearing Limited on Sept. 28.
TOP
[Industry Information]
○ Parking lot construction receives policy support, PPP model accelerates project progress
------
In accordance with the NDRC's circular on key works in promoting the construction of parking lots in urban areas in 2016, local governments will speed up efforts to prepare special plans for parking lots and strive to finish within 2016. As the fourth quarter approaches, construction of parking lots is expected to accelerate. In addition, the Ministry of Housing and Urban-Rural Development has introduced a series of policies to strengthen the guidance of the parking industry from the perspective of planning, construction and management.
Comment: Driven by polices, the investment in intelligent garage will expand. The potential market will reach one hundred billion. In addition, the promotion of PPP model is also expected to help to accelerate the construction of parking lots. Xuzhou Wuyang Technology Co., Ltd. (300420.SZ) recently indicated on its interaction platform that the company is actively promoting the construction of parking lots under PPP model. Shenzhen Jieshun Science and Technology Industry Co., Ltd. (002609.SZ) forecasts its net profit to grow 20 percent to 50 percent for the first three quarters as it accelerates the promotion of intelligent parking and other business.
○ Google's parent company develops diabetes treatment, chronic disease creates huge market
------
Verily, a company under Google's parent company, and French pharmaceutical company Sanofi have announced jointly establishment of a joint venture engaged in diabetes treatment equipment and services for 500 million U.S. dollars. The new company will combine Verily's experience in micro-electronic, analysis and consumer software development with Sanofi's clinical skills and experience to provide innovative therapies for diabetes patients.
Comment: Institutions believe that China has the world's largest population of diabetes patients. With low treatment and compliance rate and explosive growth in prevalence rate, the industry has a large space. As diabetes is a chronic disease, the diabetes industry naturally forms a industry chain in which blood glucose monitoring, drug therapy and health management are all indispensable. Tonghua Dongbao Pharmaceutical Co., Ltd. (600867.SH)'s main product is recombinant human insulin. The company will work together with Tencent create a chronic disease management platform. Sinocare Inc. (300298.SZ) is mainly engaged in blood glucose monitoring devices.
TOP
[Announcement Interpretation]
○ Jinan Diesel Engine to injected with financial assets from CNPC
------
Jinan Diesel Engine Company Limited (000617.SZ) plans to replace all its assets and liabilities at the valuation of 75.5 billion yuan for the entire equities of CNPC Capital. 6,036 million yuan of the valuation will paid by cash, and the remainder will be satisfied by acquisition through private placement at 9.88 yuan per share. In addition, the company plans to issue shares to Taikang Assets through private placement at 10.81 yuan per share to raise supporting fund of 19 billion yuan. CNPC Capital is a financial assets platform under China National Petroleum Corporation (CNPC), and its net profits for 2014, 2015 and January to May of 2016 were 5,792 million yuan, 6,074 million yuan and 2,928 million yuan respectively.
○ Three Gorges Water Conservancy and Electric Power bought by Three Gorges Capital and related party to 5 percent threshold
------
Chongqing Three Gorges Water Conservancy and Electric Power Co., Ltd. (600116.SH) announced that Three Gorges Capital and Changdian Chuangtou, both are entities under China Three Gorges Corporation, have increased holding shares of the company to 5 percent threshold from the middle of June to Sept. 12.
TOP
○ Infinova proposes to acquire Perfect Consulting, tapping into digital marketing area
------
Shenzhen Infinova Limited (002528.SZ) proposes to issue shares at no less than 7.56 yuan per share through private placement to raise 685 million yuan, in which 640 million yuan will be used to buy the entire equities of Shenzhen Perfect Consulting Co., Ltd., and the rest 45 million yuan will be used to supplement working capital. Perfect Consulting is primarily engaged in digital marketing. It businesses include search engine marketing, display advertisement marketing, mobile network marketing, platform value added services. Infinova committed that net profits of Perfect Consulting from 2016 to 2018 will be 50 million yuan, 65 million yuan and 84.5 million yuan respectively.
○ Blackcow Food proposes to raise RMB18 bln to develop OLED business
------
Blackcow Food Company Limited (002387.SZ) proposes to issue shares through private placement at 16.7 yuan per share to raise 18 billion yuan, which will be used to invest in the 5.5 generation AMOLED project and the 6 generation AMOLED display and module production line project. The company's controlling shareholder Tibet Zhihe Capital will subscribe with 5 billion yuan in cash, and Kunshan Guochuang Investment will subscribe with 3 billion yuan.
Comment: Blackcow Food, whose controller has changed last year, started complete transformation under the lead of Wang Wenxue. Previously, it has split some old businesses. Once this private placement completed, the company's major business will turn into OLED industry.
○ Metalforming Intelligent Manufacturing becomes indirect supplier of Tesla
------
Hefei Metalforming Intelligent Manufacturing Co., Ltd. (603011.SH) has signed sales contract of mechanical press with Mexico's ESON at the annual volume of 4.07 million U.S. dollars (equivalent to 27 million yuan). ESON's Mexico plant primarily offers mould and automobile panel for Tesla, Ford and Honda. It is learnt that the machinery press offered by Metalforming Intelligent Manufacturing will be mainly used for the production of large vehicle panels. If Tesla will built plants in mainland China, Meltaforming Intelligent Manufacturing is expected to obtain more orders.
○ Hongrun Construction Group Co., Ltd. (002062.SZ) proposes to raise more than 1.2 billion yuan through private placement at no less than 6.81 yuan per share, which will be used for the Zhongxing Bridge and connecting line (Jiangnan Road-Qiangyun Road) of Ningbo City's "three road and one bridge" PPP project.
○ China Shipping Haisheng Co., Ltd. (600896.SH) has launched a 50 million yuan share repurchase plan. The repurchase price will be no more than 12 yuan per share. Zhao Weiping, actual controller of Panda Financial Holding Corp., Ltd. (600599.SH) on Sept. 12 increased holding 1.66 million shares of the company, accounting for 1 percent of the company's shareholding; Zhao will continue to increase to no more than 2 percent. Controlling shareholder of Gansu Shangfeng Cement Co., Ltd. (000672.SH) from Sept. 12 to 13 has increased holding 5,898,000 shares of the company, and will continue to increase to no more than 2 percent.
○ Shenzhen Huakong Seg Co., ltd. (000068.SZ) has jointly won the renovation of the first phase of sponge city and Lianmeng River treatment PPP project of Hedong District, Suining City, Sichuan Province. The total investment is 1 billion yuan. Xi'an Longi Silicon Materials Corp. (601012.SH) has won the bid of China Guangdong Nuclear Power Company (CGNPC) solar module strategic collection project and module leader procurement project. The amount is 1 billion yuan.
[Trading Trends]
○ Sunwoda Electronic bought through three institutional seats
------
The trading volume ranking list on Sept. 13 shows that Sunwoda Electronic Co., Ltd. (300207.SZ) was bought through three institutional seats with a total of 237 million yuan, accounting for 32.33 percent of intraday turnover. Another institution sold 24.59 million yuan.
Comment: institutions believes that as the Iphone7 will be launched, the company's lithium battery order from Apple Inc's consumer electronics will increase steadily. At the same time, the company is expected to acquire new orders for other products of Apple. In addition, the company has obtained lithium battery orders for power battery electric vehicles and logistic vehicles from Geely and Wuzhoulong Motors, which are expected to contribute to the company's performance in this year and the next year.
[Trading Alarms]
○ LD Automatic Equipment and TKD Crystal Electronic Science and Technology to offer for subscription
------
Shenzhen LD Automatic Equipment Company Limited (300545.SZ) will offer for subscription at 13.5 yuan per share. The company's PE ratio is 23 times, and the upper limit of subscription is 17500 shares. The company primarily provide mechanical equipment for LCD and other display manufacturers. Hubei TKD Crystal Electronic Science and Technology Co., Ltd (732738.SZ) will offer for subscription at 16.14 yuan per share. The company's PE ratio is 23 times. The upper limit of subscription is 16000 shares. The company operates in the electronic parts and components industry.
[Suspension of Publication]
○ According to the arrangement of Shanghai and Shenzhen Stock Exchanges, publication of this issue will be suspended on Sept. 14 and 15, will be resumed on Sept. 18. Happy Mid-Autumn Festival!
TOP
○ 13th Five-year plan on new materials basically completed, focus on breakthroughs in application bottleneck
○ Parking lot construction receives policy support, Google's parent company develops diabetes treatment
○ Jinan Diesel Engine to injected with financial assets from CNPC, Three Gorges Water Conservancy and Electric Power bought by Three Gorges Capital and related party to 5 percent threshold
○ Infinova proposes to acquire Perfect Consulting, Blackcow Food proposes to raise fund to develop OLED business
[SSN Focus]
○ 13th Five-year plan on new materials basically completed, focus on breakthroughs in application bottleneck
------
The 13th Five-year Plan on new material has basically completed and is under report process, indicated Chang Guowu, director of the comprehensive division of the raw materials department of the Ministry of Industry and Information Technology (MIIT), at the closing ceremony of 2016 China Nanjing New Materials Capital ＆ Technology Summit on Sept. 13. China has developed well in some cutting-edge new materials. And it will continue to develop its advantages in graphene and superconducting materials.
Comment: As new materials play an important role in national economy and national defense, all developed countries have made new material one of the key technologies that should be given priority in the 21st century, and made strategic plans and heavy investment in the field. In the graphene industry, as technologies become mature, there have been large-scale graphene products entering into the lithium battery cathode materials, electronics thermal film and other industry chains. Superconducting material is a major material for quantum computer. Institutions are optimistic that it will benefit from the rise of quantum technology. Jiangsu Etern Co., Ltd. (600105.SH) has produced the second-generation high-temperature superconducting strip with 1,000 meter long. Tianjin Benefo Tejing Electric Co., Ltd. (600468.SH) provides a favorable environment for the development, production and marketing for the superconducting wire industry by acquiring Beijing Innost Superconducting Technology Co., Ltd. and Suzhou Guanlong Electromagnetic Wire Co., Ltd.
[SSN Selection]
○ The August macroeconomic data released by the National Bureau of Statistics (NBC) on Sept. 13 picked up. Private investment saw its monthly growth rise above zero.
○ The People's Bank of China (PBoC) resumed 28-day reverse repo on Sept. 13 at an interest rate 5 base points lower than last time in February this year.
○ The National Development and Reform Commission (NDRC) on Sept. 13 released the guideline for building China-Mongolia-Russia economic corridor. It is the first guideline for multilateral cooperation under the framework of the "Belt and Road" initiative.
○ The Ministry of Commerce and other two departments released categories to encourage import services, including virtual reality technology and treatment and remediation of polluted solid.
○ Securities margin recorded a net withdrawal of 23 billion yuan last week. It is the third straight week that saw net withdrawal.
○ The Postal Savings Bank of China (PSBC) announced its plan to issue 12.1 billion shares in Hong Kong on Sept. 14 and go listed on the main board of Hong Kong Exchanges and Clearing Limited on Sept. 28.
TOP
[Industry Information]
○ Parking lot construction receives policy support, PPP model accelerates project progress
------
In accordance with the NDRC's circular on key works in promoting the construction of parking lots in urban areas in 2016, local governments will speed up efforts to prepare special plans for parking lots and strive to finish within 2016. As the fourth quarter approaches, construction of parking lots is expected to accelerate. In addition, the Ministry of Housing and Urban-Rural Development has introduced a series of policies to strengthen the guidance of the parking industry from the perspective of planning, construction and management.
Comment: Driven by polices, the investment in intelligent garage will expand. The potential market will reach one hundred billion. In addition, the promotion of PPP model is also expected to help to accelerate the construction of parking lots. Xuzhou Wuyang Technology Co., Ltd. (300420.SZ) recently indicated on its interaction platform that the company is actively promoting the construction of parking lots under PPP model. Shenzhen Jieshun Science and Technology Industry Co., Ltd. (002609.SZ) forecasts its net profit to grow 20 percent to 50 percent for the first three quarters as it accelerates the promotion of intelligent parking and other business.
○ Google's parent company develops diabetes treatment, chronic disease creates huge market
------
Verily, a company under Google's parent company, and French pharmaceutical company Sanofi have announced jointly establishment of a joint venture engaged in diabetes treatment equipment and services for 500 million U.S. dollars. The new company will combine Verily's experience in micro-electronic, analysis and consumer software development with Sanofi's clinical skills and experience to provide innovative therapies for diabetes patients.
Comment: Institutions believe that China has the world's largest population of diabetes patients. With low treatment and compliance rate and explosive growth in prevalence rate, the industry has a large space. As diabetes is a chronic disease, the diabetes industry naturally forms a industry chain in which blood glucose monitoring, drug therapy and health management are all indispensable. Tonghua Dongbao Pharmaceutical Co., Ltd. (600867.SH)'s main product is recombinant human insulin. The company will work together with Tencent create a chronic disease management platform. Sinocare Inc. (300298.SZ) is mainly engaged in blood glucose monitoring devices.
TOP
[Announcement Interpretation]
○ Jinan Diesel Engine to injected with financial assets from CNPC
------
Jinan Diesel Engine Company Limited (000617.SZ) plans to replace all its assets and liabilities at the valuation of 75.5 billion yuan for the entire equities of CNPC Capital. 6,036 million yuan of the valuation will paid by cash, and the remainder will be satisfied by acquisition through private placement at 9.88 yuan per share. In addition, the company plans to issue shares to Taikang Assets through private placement at 10.81 yuan per share to raise supporting fund of 19 billion yuan. CNPC Capital is a financial assets platform under China National Petroleum Corporation (CNPC), and its net profits for 2014, 2015 and January to May of 2016 were 5,792 million yuan, 6,074 million yuan and 2,928 million yuan respectively.
○ Three Gorges Water Conservancy and Electric Power bought by Three Gorges Capital and related party to 5 percent threshold
------
Chongqing Three Gorges Water Conservancy and Electric Power Co., Ltd. (600116.SH) announced that Three Gorges Capital and Changdian Chuangtou, both are entities under China Three Gorges Corporation, have increased holding shares of the company to 5 percent threshold from the middle of June to Sept. 12.
TOP
○ Infinova proposes to acquire Perfect Consulting, tapping into digital marketing area
------
Shenzhen Infinova Limited (002528.SZ) proposes to issue shares at no less than 7.56 yuan per share through private placement to raise 685 million yuan, in which 640 million yuan will be used to buy the entire equities of Shenzhen Perfect Consulting Co., Ltd., and the rest 45 million yuan will be used to supplement working capital. Perfect Consulting is primarily engaged in digital marketing. It businesses include search engine marketing, display advertisement marketing, mobile network marketing, platform value added services. Infinova committed that net profits of Perfect Consulting from 2016 to 2018 will be 50 million yuan, 65 million yuan and 84.5 million yuan respectively.
○ Blackcow Food proposes to raise RMB18 bln to develop OLED business
------
Blackcow Food Company Limited (002387.SZ) proposes to issue shares through private placement at 16.7 yuan per share to raise 18 billion yuan, which will be used to invest in the 5.5 generation AMOLED project and the 6 generation AMOLED display and module production line project. The company's controlling shareholder Tibet Zhihe Capital will subscribe with 5 billion yuan in cash, and Kunshan Guochuang Investment will subscribe with 3 billion yuan.
Comment: Blackcow Food, whose controller has changed last year, started complete transformation under the lead of Wang Wenxue. Previously, it has split some old businesses. Once this private placement completed, the company's major business will turn into OLED industry.
○ Metalforming Intelligent Manufacturing becomes indirect supplier of Tesla
------
Hefei Metalforming Intelligent Manufacturing Co., Ltd. (603011.SH) has signed sales contract of mechanical press with Mexico's ESON at the annual volume of 4.07 million U.S. dollars (equivalent to 27 million yuan). ESON's Mexico plant primarily offers mould and automobile panel for Tesla, Ford and Honda. It is learnt that the machinery press offered by Metalforming Intelligent Manufacturing will be mainly used for the production of large vehicle panels. If Tesla will built plants in mainland China, Meltaforming Intelligent Manufacturing is expected to obtain more orders.
○ Hongrun Construction Group Co., Ltd. (002062.SZ) proposes to raise more than 1.2 billion yuan through private placement at no less than 6.81 yuan per share, which will be used for the Zhongxing Bridge and connecting line (Jiangnan Road-Qiangyun Road) of Ningbo City's "three road and one bridge" PPP project.
○ China Shipping Haisheng Co., Ltd. (600896.SH) has launched a 50 million yuan share repurchase plan. The repurchase price will be no more than 12 yuan per share. Zhao Weiping, actual controller of Panda Financial Holding Corp., Ltd. (600599.SH) on Sept. 12 increased holding 1.66 million shares of the company, accounting for 1 percent of the company's shareholding; Zhao will continue to increase to no more than 2 percent. Controlling shareholder of Gansu Shangfeng Cement Co., Ltd. (000672.SH) from Sept. 12 to 13 has increased holding 5,898,000 shares of the company, and will continue to increase to no more than 2 percent.
○ Shenzhen Huakong Seg Co., ltd. (000068.SZ) has jointly won the renovation of the first phase of sponge city and Lianmeng River treatment PPP project of Hedong District, Suining City, Sichuan Province. The total investment is 1 billion yuan. Xi'an Longi Silicon Materials Corp. (601012.SH) has won the bid of China Guangdong Nuclear Power Company (CGNPC) solar module strategic collection project and module leader procurement project. The amount is 1 billion yuan.
[Trading Trends]
○ Sunwoda Electronic bought through three institutional seats
------
The trading volume ranking list on Sept. 13 shows that Sunwoda Electronic Co., Ltd. (300207.SZ) was bought through three institutional seats with a total of 237 million yuan, accounting for 32.33 percent of intraday turnover. Another institution sold 24.59 million yuan.
Comment: institutions believes that as the Iphone7 will be launched, the company's lithium battery order from Apple Inc's consumer electronics will increase steadily. At the same time, the company is expected to acquire new orders for other products of Apple. In addition, the company has obtained lithium battery orders for power battery electric vehicles and logistic vehicles from Geely and Wuzhoulong Motors, which are expected to contribute to the company's performance in this year and the next year.
[Trading Alarms]
○ LD Automatic Equipment and TKD Crystal Electronic Science and Technology to offer for subscription
------
Shenzhen LD Automatic Equipment Company Limited (300545.SZ) will offer for subscription at 13.5 yuan per share. The company's PE ratio is 23 times, and the upper limit of subscription is 17500 shares. The company primarily provide mechanical equipment for LCD and other display manufacturers. Hubei TKD Crystal Electronic Science and Technology Co., Ltd (732738.SZ) will offer for subscription at 16.14 yuan per share. The company's PE ratio is 23 times. The upper limit of subscription is 16000 shares. The company operates in the electronic parts and components industry.
[Suspension of Publication]
○ According to the arrangement of Shanghai and Shenzhen Stock Exchanges, publication of this issue will be suspended on Sept. 14 and 15, will be resumed on Sept. 18. Happy Mid-Autumn Festival!
TOP
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