[Today's Guide]
○Plan on reducing cost and enhancing effectiveness of logistics industry released, proposing to foster modern logistics groups
○Prices of viscose staple fiber all rise, Institutions lifts estimated short supply of global sugar market
○Zhongji Investment Holding to acquire UK game tycoon at RMB1.6 bln in cash, Xianfeng New Material acquires diary assets at RMB1.2 bln
○Pubang Landscape Architecture to acquire BRSS at RMB958 mln, Net profit of Jinke Entertainment Culture to up by 300 pct. during Q1-Q3
[SSN Focus]
○Plan on reducing cost and enhancing effectiveness of logistics industry released, proposing to foster modern logistics groups
------
The General Office of the State Council recently forwarded the Special Action Plan for Reducing the Cost and Enhancing the Effectiveness of the Logistics Industry (2016-2018). It is proposed to, by 2018, greatly enhance the comprehensive competitiveness of logistics enterprises, widely use advanced technologies like the Internet of Things and big data, and lower the proportion of total logistics expenditure in GDP by over 1 percentage point from 2015. The plan also proposes multiple specific measures, such as advancing merger, acquisition and reorganization of enterprises engaged in airfreight, advancing cargo clearance facilitation, and fostering a batch of modern logistics enterprises/groups with international competitiveness.
Comment: The plan aims at coping with long-standing problems like high cost and low efficiency in the industry, and it highlights the operation model of modern logistics. The central government has intensively launched policies to support the development of industries like the Internet plus logistics and cross-border e-commerce since 2016. Institutions are quite rosy that the logistics industry will continuously benefit from policy support. Jiangsu Xinning Modern Logistics Co., Ltd. (300013.SZ) acquires Guangzhou eTrans Information Co., Ltd., a satellite positioning service provider. The former might expand to the industrial chain of the Internet of Vehicles. CTS International Logistics Corporation Limited (603128.SH) is a leading cross-border comprehensive logistics service provider in China.
[SSN Selection]
○China's General Secretary Xi Jinping on Sept. 26 inspected the PLA Rocket Force and he stressed that a powerful modern rocket force should be constructed.
○The State-owned Assets Supervision and Administration Commission (SASAC) and the Ministry of Finance recently jointly printed and distributed the new rules on examining central state-owned enterprises. Central state-owned enterprises are classified into three categories for examination according to their functions and business characteristics.
○Xiao Yaqing, head of the SASAC, recently went to Heilongjiang province for investigating the progress of the quality and effectiveness enhancement, deepening reform and etc. in China National Petroleum Corporation, Harbin Electric Corporation and etc.
○The National Council for Social Security Fund recently revised the standards for the investment of social security fund in trusts, enlarging the scope of guarantees from banks to banks and large-scale enterprises.
○Latest data from Hong Kong Exchanges and Clearing Limited shows that Central Huijin Investment Co., Ltd. purchased 6.755 million H shares of China Everbright Bank Company Limited Co., Ltd. (06818.HK) on Sept. 14 at an average price of 3.67 HK dollars per share.
TOP
[Industry Information]
○Prices of viscose staple fiber all rise, industrial prosperity keeps improving
------
SSN learns that driven by tight market supply, the prices of viscose staple fiber in eastern China, northwestern China and southwestern China are all raised by 100 yuan to 200 yuan per ton on Sept. 26, recording new highs in recent years. The viscose staple fiber market embraces faster price hike since July and the price has totally surged over 30 percent since 2016.
Comment: Institutions believe that benefited from production limitation because of environmental protection and the substitution effect brought by the rising price of cotton, the supply-demand structure of viscose staple fiber gradually improves and the industrial prosperity goes upward. In addition, the capacity expansion of the industry in 2015 had apparently slowed down compared with the situation in previous years. Jiangsu Aoyang Technology Corporation Limited (002172.SZ) owns an annual capacity of 300,000 ton of viscose staple fiber, while Xinjiang Zhongtai Chemical Co., Ltd. (002092.SZ) produces nearly 400,000 ton of viscose staple fiber annually.
○Institutions lifts estimated short supply of global sugar market, sugar price to surge in China
------
Analysis institution Platts Kingsman on Sept. 26 lifts the estimated gap of sugar supply by 570,000 ton to 6.45 million ton during 2016/17. The institution claims that the decline of global sugar output is resulted from the output decline of 860,000 ton in 2016 in the central-southern part of Brazil and the expectation that the sugar output in the northeast part of Brazil will decrease by 212,000 ton in 2017.
Comment: Institutions point out that sugar price in foreign countries keeps rising recently and the news that China's Ministry of Commerce plans to investigate safeguard measures on imported sugar boosts Zhengzhou sugar. Sugar price in overseas market doesn't change, while sugar price in China is still likely to rise. According to the latest announcement of Cofco Tunhe Co., Ltd. (600737.SH), its net profit is expected to increase by 300-350 percent in the first three quarters due to rising sugar prices at home and abroad. Nanning Sugar Industry Co., Ltd. (000911.SZ) is a sugar industrial integration platform in Guangxi. Market imposes strong expectation on the company's further merger and integration and its production capacity is very elastic.
TOP
[Industry Information]
○Zhongji Investment Holding to acquire UK game tycoon at RMB1.6 bln in cash
------
Shanghai Zhongji Investment Holding Co., Ltd. (600634.SH) plans buy 51 percent equity of Shanghai Hongtou Network Technology Co., Ltd. at 1.632 billion yuan in cash. After this acquisition, the company's principal business will be R＆D and application of games.
Hongtou Network Technology saw net profit of 220 million yuan in 2015 and its core assets is Jagex Games Studio, which is the one of the biggest developers and issuers of online games in the UK. According to commitment, net profit deducting extraordinary gains and losses of Jagex will reach 100 million yuan, 297 million yuan and 323 million yuan in July-December of 2016, 2017 and 2018 respectively.
○Xianfeng New Material acquires diary assets at RMB1.2 bln
------
Ningbo Xianfeng New Material Co., Ltd. (300163.SZ) plans to acquire 100 percent equity of Hong Kong Siming Investment Co., Ltd. and 100 percent equity of Ningbo Fandi International Trade Co., Ltd. under the listed company's actual controller Lu Xianfeng at a total price of 1.183 billion yuan through private placement and paying cash. The company will also raise 340 million yuan through private placement. Stocks will be issued at a price of 10.05 yuan per share.
The object company's business covers cow breeding, production and sales of raw silk and sales of fresh milk. All operating revenues of Siming Investment are contributed by its subsidiary Moon Lake, which is used to buy business assets of VDL. VDL signed agreement on exclusive supplier of raw milk with Fonterra Cooperative Group. Sales income of Moon Lake from Fonterra Cooperative Group was 248 million yuan, 214 million yuan and 99.54 million yuan in 2014, 2015 and January-June of 2016 respectively.
TOP
○Pubang Landscape Architecture to acquire BRSS at RMB958 mln
------
Pubang Landscape Architecture Co., Ltd. (002663.SZ) plans to acquire 100 percent equity of BRSS at a price of 958 million yuan through private placement and cash. Also it will raise supporting funds of 260.4 million yuan through private placement. Stocks in the above private placement will be issued at 6.81 yuan per share. BRSS is a solution provider of mobile digital marketing. According to commitment, net profit deducting extraordinary gains and losses of BRSS will be 67 million yuan, 87.1 million yuan and 113.3 million yuan during 2016 and 2018 respectively.
○100 percent state-owned equity of controlling shareholder of Henan Yinge Industrial Investment Co., Ltd. (600069) is about to be publicly transferred at a floor price of 30.84 yuan per share.
○Bestsun Energy Co., Ltd. (600681.SH) plans to introduce employee shareholding plan to raise 120 million yuan at most. The funds will be used to subscribe inferior shares of trust plan set by Guangdong Yuecai Trust. The trust plan will raise 240 million yuan at most.
[Financial Reports Express]
○Net profit of Jinke Entertainment Culture to up by 300 pct. during Q1-Q3
------
Net profit of Zhejiang Jinke Entertainment Culture Co., Ltd. (300459.SZ) is expected to rise by 270-300 percent in the first three quarters mainly due to consolidated financial statements with Hangzhou Zhexin Information Technology Co., Ltd.
[Trading Alarms]
○Kuka Home to launch IPO on Sept. 27.
------
Kuka Home Co., Ltd. will launch IPO at price of 24.66 yuan per share with upper subscription limit of 24,000 shares for each account. The PE ratio is 23 times. The company is engaged in sofa and other household products.
TOP
○Plan on reducing cost and enhancing effectiveness of logistics industry released, proposing to foster modern logistics groups
○Prices of viscose staple fiber all rise, Institutions lifts estimated short supply of global sugar market
○Zhongji Investment Holding to acquire UK game tycoon at RMB1.6 bln in cash, Xianfeng New Material acquires diary assets at RMB1.2 bln
○Pubang Landscape Architecture to acquire BRSS at RMB958 mln, Net profit of Jinke Entertainment Culture to up by 300 pct. during Q1-Q3
[SSN Focus]
○Plan on reducing cost and enhancing effectiveness of logistics industry released, proposing to foster modern logistics groups
------
The General Office of the State Council recently forwarded the Special Action Plan for Reducing the Cost and Enhancing the Effectiveness of the Logistics Industry (2016-2018). It is proposed to, by 2018, greatly enhance the comprehensive competitiveness of logistics enterprises, widely use advanced technologies like the Internet of Things and big data, and lower the proportion of total logistics expenditure in GDP by over 1 percentage point from 2015. The plan also proposes multiple specific measures, such as advancing merger, acquisition and reorganization of enterprises engaged in airfreight, advancing cargo clearance facilitation, and fostering a batch of modern logistics enterprises/groups with international competitiveness.
Comment: The plan aims at coping with long-standing problems like high cost and low efficiency in the industry, and it highlights the operation model of modern logistics. The central government has intensively launched policies to support the development of industries like the Internet plus logistics and cross-border e-commerce since 2016. Institutions are quite rosy that the logistics industry will continuously benefit from policy support. Jiangsu Xinning Modern Logistics Co., Ltd. (300013.SZ) acquires Guangzhou eTrans Information Co., Ltd., a satellite positioning service provider. The former might expand to the industrial chain of the Internet of Vehicles. CTS International Logistics Corporation Limited (603128.SH) is a leading cross-border comprehensive logistics service provider in China.
[SSN Selection]
○China's General Secretary Xi Jinping on Sept. 26 inspected the PLA Rocket Force and he stressed that a powerful modern rocket force should be constructed.
○The State-owned Assets Supervision and Administration Commission (SASAC) and the Ministry of Finance recently jointly printed and distributed the new rules on examining central state-owned enterprises. Central state-owned enterprises are classified into three categories for examination according to their functions and business characteristics.
○Xiao Yaqing, head of the SASAC, recently went to Heilongjiang province for investigating the progress of the quality and effectiveness enhancement, deepening reform and etc. in China National Petroleum Corporation, Harbin Electric Corporation and etc.
○The National Council for Social Security Fund recently revised the standards for the investment of social security fund in trusts, enlarging the scope of guarantees from banks to banks and large-scale enterprises.
○Latest data from Hong Kong Exchanges and Clearing Limited shows that Central Huijin Investment Co., Ltd. purchased 6.755 million H shares of China Everbright Bank Company Limited Co., Ltd. (06818.HK) on Sept. 14 at an average price of 3.67 HK dollars per share.
TOP
[Industry Information]
○Prices of viscose staple fiber all rise, industrial prosperity keeps improving
------
SSN learns that driven by tight market supply, the prices of viscose staple fiber in eastern China, northwestern China and southwestern China are all raised by 100 yuan to 200 yuan per ton on Sept. 26, recording new highs in recent years. The viscose staple fiber market embraces faster price hike since July and the price has totally surged over 30 percent since 2016.
Comment: Institutions believe that benefited from production limitation because of environmental protection and the substitution effect brought by the rising price of cotton, the supply-demand structure of viscose staple fiber gradually improves and the industrial prosperity goes upward. In addition, the capacity expansion of the industry in 2015 had apparently slowed down compared with the situation in previous years. Jiangsu Aoyang Technology Corporation Limited (002172.SZ) owns an annual capacity of 300,000 ton of viscose staple fiber, while Xinjiang Zhongtai Chemical Co., Ltd. (002092.SZ) produces nearly 400,000 ton of viscose staple fiber annually.
○Institutions lifts estimated short supply of global sugar market, sugar price to surge in China
------
Analysis institution Platts Kingsman on Sept. 26 lifts the estimated gap of sugar supply by 570,000 ton to 6.45 million ton during 2016/17. The institution claims that the decline of global sugar output is resulted from the output decline of 860,000 ton in 2016 in the central-southern part of Brazil and the expectation that the sugar output in the northeast part of Brazil will decrease by 212,000 ton in 2017.
Comment: Institutions point out that sugar price in foreign countries keeps rising recently and the news that China's Ministry of Commerce plans to investigate safeguard measures on imported sugar boosts Zhengzhou sugar. Sugar price in overseas market doesn't change, while sugar price in China is still likely to rise. According to the latest announcement of Cofco Tunhe Co., Ltd. (600737.SH), its net profit is expected to increase by 300-350 percent in the first three quarters due to rising sugar prices at home and abroad. Nanning Sugar Industry Co., Ltd. (000911.SZ) is a sugar industrial integration platform in Guangxi. Market imposes strong expectation on the company's further merger and integration and its production capacity is very elastic.
TOP
[Industry Information]
○Zhongji Investment Holding to acquire UK game tycoon at RMB1.6 bln in cash
------
Shanghai Zhongji Investment Holding Co., Ltd. (600634.SH) plans buy 51 percent equity of Shanghai Hongtou Network Technology Co., Ltd. at 1.632 billion yuan in cash. After this acquisition, the company's principal business will be R＆D and application of games.
Hongtou Network Technology saw net profit of 220 million yuan in 2015 and its core assets is Jagex Games Studio, which is the one of the biggest developers and issuers of online games in the UK. According to commitment, net profit deducting extraordinary gains and losses of Jagex will reach 100 million yuan, 297 million yuan and 323 million yuan in July-December of 2016, 2017 and 2018 respectively.
○Xianfeng New Material acquires diary assets at RMB1.2 bln
------
Ningbo Xianfeng New Material Co., Ltd. (300163.SZ) plans to acquire 100 percent equity of Hong Kong Siming Investment Co., Ltd. and 100 percent equity of Ningbo Fandi International Trade Co., Ltd. under the listed company's actual controller Lu Xianfeng at a total price of 1.183 billion yuan through private placement and paying cash. The company will also raise 340 million yuan through private placement. Stocks will be issued at a price of 10.05 yuan per share.
The object company's business covers cow breeding, production and sales of raw silk and sales of fresh milk. All operating revenues of Siming Investment are contributed by its subsidiary Moon Lake, which is used to buy business assets of VDL. VDL signed agreement on exclusive supplier of raw milk with Fonterra Cooperative Group. Sales income of Moon Lake from Fonterra Cooperative Group was 248 million yuan, 214 million yuan and 99.54 million yuan in 2014, 2015 and January-June of 2016 respectively.
TOP
○Pubang Landscape Architecture to acquire BRSS at RMB958 mln
------
Pubang Landscape Architecture Co., Ltd. (002663.SZ) plans to acquire 100 percent equity of BRSS at a price of 958 million yuan through private placement and cash. Also it will raise supporting funds of 260.4 million yuan through private placement. Stocks in the above private placement will be issued at 6.81 yuan per share. BRSS is a solution provider of mobile digital marketing. According to commitment, net profit deducting extraordinary gains and losses of BRSS will be 67 million yuan, 87.1 million yuan and 113.3 million yuan during 2016 and 2018 respectively.
○100 percent state-owned equity of controlling shareholder of Henan Yinge Industrial Investment Co., Ltd. (600069) is about to be publicly transferred at a floor price of 30.84 yuan per share.
○Bestsun Energy Co., Ltd. (600681.SH) plans to introduce employee shareholding plan to raise 120 million yuan at most. The funds will be used to subscribe inferior shares of trust plan set by Guangdong Yuecai Trust. The trust plan will raise 240 million yuan at most.
[Financial Reports Express]
○Net profit of Jinke Entertainment Culture to up by 300 pct. during Q1-Q3
------
Net profit of Zhejiang Jinke Entertainment Culture Co., Ltd. (300459.SZ) is expected to rise by 270-300 percent in the first three quarters mainly due to consolidated financial statements with Hangzhou Zhexin Information Technology Co., Ltd.
[Trading Alarms]
○Kuka Home to launch IPO on Sept. 27.
------
Kuka Home Co., Ltd. will launch IPO at price of 24.66 yuan per share with upper subscription limit of 24,000 shares for each account. The PE ratio is 23 times. The company is engaged in sofa and other household products.
TOP
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