[Today's Guide]
○ Meeting of reform depening team supported pension service business to guide social capital in
○ Marine application space of titanium alloy to show, rirst NB-IoT worldwide initiated, industry speeds up popularization
○ Goldstone Orient New Material Equipment to acquire "Crack" medicine enterprise,Sanxia Paints to enter into fodder industry
○ Sunshine Laser ＆ Electronics Technology to acquire NEEQ-listed company, Tianrun Crankshaft to acquire Modern Metal ＆ Refining
[SSN Focus]
○ Meeting of reform depening team supported pension service business to guide social capital in
------
Chinese President Xi Jinping on Oct. 11 hosted the 28th meeting of the central government's leadership team to deepen the reform. Several Opinions for Comprehensively Opening the Pension Service Market to Improve Pension Service Quality has been approved in the meeting, which requires reducing entry threshold, and guiding the social capital into pension service business. It also approves other documents, such as Opinions for Fully Promoting River Governor System, Opinions for Enhancing Health and Orderly Development of Mobile Internet, and etc.
Comment: China's aging issue worsens, arousing huge demands for pension industry, pension institutions now are insufficient with low quality, and this industry is likely to step into golden development period in next 10 to 15 years. In recent years, policies supporting this industry have successively released, covering many aspects, such as land supply, fiscal support, tax subsidies, medical care ＆ pension integration and so on, governments have been the main investors, but now, they gradually guide the implementation with diversified types of investors involved in. Among listed companies, Jinling Hotel Corporation, Ltd. (601007.SH) invests and develops Tianquan Lake tourism ＆ ecology garden in Nanjing city; the mode of nursing houses for the old in chain owned and operated by Zhejiang Double Arrow Rubber Co., Ltd. (002381.SZ) has started to be copied in other regions; Nanjing Xinjiekou Department Store Co., Ltd. (600682.SH) proposes to acquire Homecare ＆ Healthcare, the leading pension service provider domestically.
[SSN Selection]
○ China's new urbanization will experience a long-term process, and stable and sound development of the real estate market should be promoted, Chinese Premier Li Keqiang on Oct. 11 indicated.
○ General Office of the State Council recently issued Scheme for Promoting Non-resident Population of 100 Million to Settle in Cities, proposing to further expand settle-in-city channels.
○ Four-party Agreement of Shenzhen-Hong Kong Stock Connect program has been officially signed on Oct. 11, and HKEx CEO Charles Li indicated that efforts should be made to extend the interconnection in the primary market, commodities, bonds and others.
○ Ministry of Industry and Information Technology has recently formulated and released a five-year plan to develop building materials industry, proposing to take special actions to greatly reduce the overcapacity of cement and plate glass industries.
○ Net outflow of securities margin recorded at 104.2 billion yuan last week; but the historical records were always net inflow in the first week after the National Holiday during recent years.
TOP
[Industry Information]
○ Deep sea spaceport project approved, application space of titanium alloy to show
------
Deep sea spaceport has been approved in the "Scientific ＆ Technological Innovation 2030- Major Projects", and next-step work is being pushed now, the SSN learnt. New National Scientific ＆ Technological Innovation of the "13th Five-Year Plan" released in August has proposed to build up a deep sea spaceport, develop deep sea exploration and operation-generic technologies, and research key technologies, such as general ＆ specialized generic technologies, mobile or settled deep sea spaceport.
Comment: Main building material of the spaceport is titanium alloy, construction for a main spaceport may need raw materials of over 4,000 tons, and future marine engineering will become a key application field for titanium alloy based materials. Among the listed companies, Western Metal Materials Co., Ltd. (002149.SZ) is positively promoting the products and services related to titanium and metallic composite materials to be used in marine engineering; Baoji Titanium Industry Co., Ltd. (600456.SH) has advantages in titanium materials used in aviation and marine fields.
○ First NB-IoT worldwide initiated, industry speeds up popularization
------
Based on report from C114.net, Deutsche Telekom AG has activated the first fully-standardized NB-IoT network, and planned to further announce a NB-IoT strategy in the demonstration on technology ＆ smart-parking service in the press conference on Oct. 20. Main operators worldwide, including Vodafone LSE, have committed to develop NB-IoT technology.
Comment: Institutions believed that domestic NB-IoT standard will be released at the end of 2016, and this technology could be commercially used in scale at the beginning of 2017. The Internet of Things industry will achieve an annual growth rate of around 30 percent in China, and the market scale will surpass 1.5 trillion yuan in 2018. Suntront Technology Co., Ltd. (300259.SZ) is mainly engaged in intelligent water and gas meters, and it is actively deploying the NB-IoT business through extensive merging; Henan Hanwei Electronics Co., Ltd. (300007.SZ) is mainly engaged in gas sensor business, and will benefit from rapid development of Internet of Things.
○ NDRC greatly promotes power reform to break monopoly, investment growth of power distribution network to be expected
------
National Development and Reform Commission (NDRC) on Oct. 11 released Management Method for Power Sales Companies' Entry ＆ Exit and Management Method for Orderly Opening Business of Power Distribution Network. The said two documents clearly rule that total assets of a power sales company shall not be less than 20 million yuan, and encourage power grid enterprises and social capital to build up companies with diversified property rights through equity cooperation to operate power distribution network.
Comment: These two documents enhance for each other, marking that a new round of power reform starts to be substantially promoted. The entry threshold of 20 million yuan is not high, which can attract more funds into power sales industry. Opening the power distribution market can effectively break the monopoly of power grid. PPP mode cooperated by the government and social capital will also promote the implementation of investment for power distribution network. Shenwan Hongyuan Securities is optimistic on Beijing Creative Distribution Automation Co., Ltd. (002350.SZ) in the research report, as the listed company has deployed the power sales business in zones at early stage; it also keeps a close eye on listed companies with operational business of power distribution network, including Guangxi Guidong Electric Power Corp., Ltd. (600310.SH).
TOP
[Announcement Interpretation]
○ Goldstone Orient New Material Equipment to acquire "Crack" medicine enterprise for RMB2.1 bln
------
Sichuan Goldstone Orient New Material Equipment Co., Ltd. (300434.SZ) and its wholly-owned subsidiary, Chengdu Goldstone, plan to acquire the 100 equities of Asian Pharmacy through share issuance and cash, with a transaction price of 2.1 billion yuan. The price for private placement is 23.12 yuan per share. Meanwhile, the listed company will also raise 800 million yuan through issuing shares at 23.68 yuan per share. Four specialized targets, including Xie Shihuang, co-founder of Alibaba, will participate in the subscription.
"Crack" and "Pediatric Crack" products of Asian Pharmacy are very famous. Based on the commitment, Asian Pharmacy will gain a net profit of 127 million, 280 million and 444 million yuan from 2016 to 2018. During the trading suspension of Goldstone Orient New Material Equipment, a 10-for-10 conversion of capital surplus into shares combined with 1 yuan dividend will be carried out as allocation scheme in annual report.
○ Sanxia Paints to buy methionine asset at RMB3.1 bln to enter into fodder industry
------
Chongqing Sanxia Paints Co., Ltd. (000565.SZ) plans to purchase 100 percent equity of Ningxia Unisplendour Tianhua Methionine Co., Ltd. by issuing shares at a price of 9 yuan per share through private placement to Chongqing Unisplendour Chemical Co., Ltd. Value of the underlying asset is expected to be 3.093 billion yuan. Major product of Ningxia Unisplendour Tianhua Methionine is DL-methionine of feed grade. According to earning commitment, its net profit after extraordinary gains and losses should reach 340 million yuan, 380 million yuan and 408 million yuan during 2017 and 2019 respectively. After this deal is done, Chongqing Unisplendour Chemical will become the listed company's largest shareholder with holding 44.22 percent equity, but Chongqing State-owned Assets Supervision and Administration Commission is still the listed company's actual controller.
TOP
○ Sunshine Laser ＆ Electronics Technology to acquire NEEQ-listed company at RMB221 mln
------
Shenzhen Sunshine Laser ＆ Electronics Technology Co., Ltd. (300227.SZ) plans to acquire 100 percent equity of a NEEQ-listed company Shanghai JDT Technology Corp., Ltd. at a total cost of 221 million yuan by issuing shares at a price of 22.18 yuan per share and paying in cash. Meanwhile, it intends to raise 132 million yuan of supporting funds by issuing shares at a price of 21.28 yuan per share through private placement. JDT Technology is engaged in manufacturing and sales of test fixture for production use and automatic checkout equipment products. The counterparty promises that net profit JDT Technology will reach 15 million yuan, 23 million yuan and 31 million yuan during 2016 and 2018 respectively.
○ Tianrun Crankshaft to acquire Modern Metal ＆ Refining to improve industrial chain
------
Tianrun Crankshaft Co., Ltd. (002283.SZ) plans to buy 100 percent equity of Modern Metal ＆ Refining Ltd. at a total cost of 770 million yuan by issuing 62.83 million shares at a price of 7.48 yuan per share and paying 300 million yuan in cash. In addition, it will raise supporting funds of 470 million yuan by issuing shares at a price of 7.48 yuan per share through private placement to Dingli Jiuding. Modern Metal ＆ Refining is specialized in development and sales of aluminum alloy die-casting components of automobile and its net profit will not be less than 60 million yuan, 75 million yuan and 99 million yuan during 2016 and 2018 respectively according to performance commitment. Tianrun Crankshaft proposed a 10-for-10 conversion of capital surplus into shares combined with 0.4 yuan dividend for every 10 shares according to its annual report during period of trading suspension.
○ Substantial shareholder of Tianma Bearing Group to transfer controlling right at RMB3 bln, Xu Maodong becomes actual controller
------
Khorgos Tianma Venture Capital Investment Group Co., Ltd., controlling shareholder of Tianma Bearing Group Co., Ltd. (002122.SZ), signed share transferring agreement with Kashgar Galaxy Venture Capital Co., Ltd. on Oct. 11 to transfer 356 million shares (accounting for 29.97 percent of the total share capital) of the listed company to the latter. Total value of the shares to be transferred records 2.937 million yuan. After the deal is completed, the listed company's controlling shareholder will be changed from Tianma Venture Capital Investment to Galaxy Venture Capital and actual controller will be Xu Maodong.
Galaxy Venture Capital is open to adjust the listed company's asset and business. Galaxy Venture Capital and Xu are the actual controllers of Zhejiang Busen Garments Co., Ltd. (002569.SZ) with holding 29.86 percent equity. Besides, they also hold 5.66 percent equity in Zhejiang Dragon Pipe Manufacturing Co., Ltd. (002619.SZ) and 22.32 percent equity in US-listed company WOWO Limited.
○ Shengyang Science And Technology to buy 2 firms at over RMB800 mln
------
Zhejiang Shengyang Science And Technology Co., Ltd. (603703.SH) plans to buy 100 percent equity of Zhejiang Qiusheng Photoelectric Technology Co., Ltd. and 90 percent equity of Jiangsu Kemaite Technology Development Co., Ltd. at a total cost of 805 million yuan by issing 27,275,800 shares at a price of 22.39 yuan per share and paying 194 million yuan in cash. In addition, the company intends to raise 457 million yuan by issuing shares at a price of 24.70 yuan per share from particular investors including its actual controller Ye Liming.
Qiusheng Photoelectric Technology is engaged in research and sales of small-sized display devices and becomes supplier of Haier, Midea and Whirlpool. According to commitment, its net profit will be no less than 38 million yuan, 60 million yuan and 69 million yuan during 2016 and 2018 respectively. Kemaite Technology Development is specialized in R＆D and manufacturing of various shielding and insulating compound material. Its net profit will be 10.5 million yuan, 14 million yuan and 17 million yuan during 2016 and 2018 respectively.
○ Haige Communications to buy military assets at RMB1.1 bln
------
Guangzhou Haige Communications Group Incorporated Company plans to buy 40 percent equity of Guangdong Haige iCreate Technology Co., Ltd., 10 percent equity of Shaanxi Haitong Antenna Co., Ltd., 51 percent equity of Nanchang Jiarui Technology Development Co., Ltd. and 53.125 percent equity of Xi'an Chida Aircraft Parts Manufacturing Co., Ltd. at a total cost of 1.1 billion yuan by paying 129 million yuan in cash and issuing 93.3 million shares at a price of 10.46 yuan per share through private placement. The company intends to step into communication equipment of national defense field, metal for airplane use and components of compound material. In addition, it will also raise supporting funds of 976 million yuan by issuing shares at the same price through private placement from five targets including Guangzhou Radio Group.
○ Restructuring proposals of 3 firms approved
------
Restructuring proposals of Maanshan Dingtai Rare Earth ＆ New Materials Co., Ltd. (002352.SZ) and Shenzhen Aoto Electronics Co., Ltd. (002587.SZ) were approved by China Securities Regulatory Commission with condition, while that of Gohigh Data Networks Technology Co., Ltd. (000851.SZ) was approved unconditionally.
[Financial Reports Express]
○ Net profits of Truchum Advanced Materials And Technology and others expected to rise
------
Net profit of Anhui Truchum Advanced Materials And Technology Co., Ltd. (002171.SZ) is expected to hike by 200-250 percent in the first three quarters mainly due to R＆D business of high-end thermotechnical equipment and new material. Net profit of Beijing Tongtech Co., Ltd. (300379.SZ) is expected to hike by 138-167 percent in the first three quarters due to consolidated statements with Beijing Microvision Technology Co., Ltd. Net profit of Shenzhen Sunway Communication Co., Ltd. (300136.SZ) is expected to increase by 139-153 percent during the first and the third quarters thanks to grow in sales. Expected growth in profit of Zhejiang Haers Vacuum Containers Co., Ltd. (002615.SZ) is upwardly revised from 90-120 percent to 180-200 percent as overseas operating revenue beats expectation.
Net profit of Western Mining Co., Ltd. (601168.SH) is expected to hike by 828 percent in the first three quarters as reducing cost takes effect. Net profit of Toyou Feiji Electronics Co., Ltd. (300302.SZ) is predicted to surge by 145-170 percent due to continuous growth in operating revenue. Net profit of Wanhua Chemical Group Co., Ltd. (600309.SH) is expected to move up by 70 percent in the first three quarters due to improvement in profit-making ability of MDI product.
[Data Speaks]
○ Many listed companies may restart restructuring
------
The State Council released suggestions on lowering leverage ratio of enterprises yesterday and put forward seven major channels to lower leverage, including actively promoting merge and reorganization of enterprises and orderly conducting market-based debt-for-equity swap of banks. Reorganization of listed companies is expected to accelerate.
According to SSN's statistics, about 50 state-owned listed companies terminated major assets restructuring since the beginning of this year and 16 listed firms' commitment of no reorganization will expire within the year. Net profits of Shanghai Huahong Jitong Smart System Co., Ltd. (300330.SZ) in 2015 and the first half of this year both suffered loss. Anyuan Coal Industry Group Co., Ltd. (600397.SH) and Fujian Longxi Bearing (Group) Co., Ltd. (600592.SH) are expected to take loss in the third quarter of 2016. It is an urgent need for them to turn operation better.
[Trading Alarms]
○ HEKEDA Precision Cleaning Equipment and XCC to launch IPOs on Oct. 12
------
Shenzhen HEKEDA Precision Cleaning Equipment Co., Ltd. (002816.SZ) is going to launch IPO at 8.29 yuan per share with upper subscription limit of 10,000 shares for each account. The PE ratio is 22.98 times. The company is engaged in precision cleaning equipment. Zhejiang XCC Group Co., Ltd. is going to launch IPO at 8.8 yuan per share with upper subscription limit of 20,000 shares for each account. The PE ratio is 22.96 times. The company is specialized in bearing ring.
TOP
○ Meeting of reform depening team supported pension service business to guide social capital in
○ Marine application space of titanium alloy to show, rirst NB-IoT worldwide initiated, industry speeds up popularization
○ Goldstone Orient New Material Equipment to acquire "Crack" medicine enterprise,Sanxia Paints to enter into fodder industry
○ Sunshine Laser ＆ Electronics Technology to acquire NEEQ-listed company, Tianrun Crankshaft to acquire Modern Metal ＆ Refining
[SSN Focus]
○ Meeting of reform depening team supported pension service business to guide social capital in
------
Chinese President Xi Jinping on Oct. 11 hosted the 28th meeting of the central government's leadership team to deepen the reform. Several Opinions for Comprehensively Opening the Pension Service Market to Improve Pension Service Quality has been approved in the meeting, which requires reducing entry threshold, and guiding the social capital into pension service business. It also approves other documents, such as Opinions for Fully Promoting River Governor System, Opinions for Enhancing Health and Orderly Development of Mobile Internet, and etc.
Comment: China's aging issue worsens, arousing huge demands for pension industry, pension institutions now are insufficient with low quality, and this industry is likely to step into golden development period in next 10 to 15 years. In recent years, policies supporting this industry have successively released, covering many aspects, such as land supply, fiscal support, tax subsidies, medical care ＆ pension integration and so on, governments have been the main investors, but now, they gradually guide the implementation with diversified types of investors involved in. Among listed companies, Jinling Hotel Corporation, Ltd. (601007.SH) invests and develops Tianquan Lake tourism ＆ ecology garden in Nanjing city; the mode of nursing houses for the old in chain owned and operated by Zhejiang Double Arrow Rubber Co., Ltd. (002381.SZ) has started to be copied in other regions; Nanjing Xinjiekou Department Store Co., Ltd. (600682.SH) proposes to acquire Homecare ＆ Healthcare, the leading pension service provider domestically.
[SSN Selection]
○ China's new urbanization will experience a long-term process, and stable and sound development of the real estate market should be promoted, Chinese Premier Li Keqiang on Oct. 11 indicated.
○ General Office of the State Council recently issued Scheme for Promoting Non-resident Population of 100 Million to Settle in Cities, proposing to further expand settle-in-city channels.
○ Four-party Agreement of Shenzhen-Hong Kong Stock Connect program has been officially signed on Oct. 11, and HKEx CEO Charles Li indicated that efforts should be made to extend the interconnection in the primary market, commodities, bonds and others.
○ Ministry of Industry and Information Technology has recently formulated and released a five-year plan to develop building materials industry, proposing to take special actions to greatly reduce the overcapacity of cement and plate glass industries.
○ Net outflow of securities margin recorded at 104.2 billion yuan last week; but the historical records were always net inflow in the first week after the National Holiday during recent years.
TOP
[Industry Information]
○ Deep sea spaceport project approved, application space of titanium alloy to show
------
Deep sea spaceport has been approved in the "Scientific ＆ Technological Innovation 2030- Major Projects", and next-step work is being pushed now, the SSN learnt. New National Scientific ＆ Technological Innovation of the "13th Five-Year Plan" released in August has proposed to build up a deep sea spaceport, develop deep sea exploration and operation-generic technologies, and research key technologies, such as general ＆ specialized generic technologies, mobile or settled deep sea spaceport.
Comment: Main building material of the spaceport is titanium alloy, construction for a main spaceport may need raw materials of over 4,000 tons, and future marine engineering will become a key application field for titanium alloy based materials. Among the listed companies, Western Metal Materials Co., Ltd. (002149.SZ) is positively promoting the products and services related to titanium and metallic composite materials to be used in marine engineering; Baoji Titanium Industry Co., Ltd. (600456.SH) has advantages in titanium materials used in aviation and marine fields.
○ First NB-IoT worldwide initiated, industry speeds up popularization
------
Based on report from C114.net, Deutsche Telekom AG has activated the first fully-standardized NB-IoT network, and planned to further announce a NB-IoT strategy in the demonstration on technology ＆ smart-parking service in the press conference on Oct. 20. Main operators worldwide, including Vodafone LSE, have committed to develop NB-IoT technology.
Comment: Institutions believed that domestic NB-IoT standard will be released at the end of 2016, and this technology could be commercially used in scale at the beginning of 2017. The Internet of Things industry will achieve an annual growth rate of around 30 percent in China, and the market scale will surpass 1.5 trillion yuan in 2018. Suntront Technology Co., Ltd. (300259.SZ) is mainly engaged in intelligent water and gas meters, and it is actively deploying the NB-IoT business through extensive merging; Henan Hanwei Electronics Co., Ltd. (300007.SZ) is mainly engaged in gas sensor business, and will benefit from rapid development of Internet of Things.
○ NDRC greatly promotes power reform to break monopoly, investment growth of power distribution network to be expected
------
National Development and Reform Commission (NDRC) on Oct. 11 released Management Method for Power Sales Companies' Entry ＆ Exit and Management Method for Orderly Opening Business of Power Distribution Network. The said two documents clearly rule that total assets of a power sales company shall not be less than 20 million yuan, and encourage power grid enterprises and social capital to build up companies with diversified property rights through equity cooperation to operate power distribution network.
Comment: These two documents enhance for each other, marking that a new round of power reform starts to be substantially promoted. The entry threshold of 20 million yuan is not high, which can attract more funds into power sales industry. Opening the power distribution market can effectively break the monopoly of power grid. PPP mode cooperated by the government and social capital will also promote the implementation of investment for power distribution network. Shenwan Hongyuan Securities is optimistic on Beijing Creative Distribution Automation Co., Ltd. (002350.SZ) in the research report, as the listed company has deployed the power sales business in zones at early stage; it also keeps a close eye on listed companies with operational business of power distribution network, including Guangxi Guidong Electric Power Corp., Ltd. (600310.SH).
TOP
[Announcement Interpretation]
○ Goldstone Orient New Material Equipment to acquire "Crack" medicine enterprise for RMB2.1 bln
------
Sichuan Goldstone Orient New Material Equipment Co., Ltd. (300434.SZ) and its wholly-owned subsidiary, Chengdu Goldstone, plan to acquire the 100 equities of Asian Pharmacy through share issuance and cash, with a transaction price of 2.1 billion yuan. The price for private placement is 23.12 yuan per share. Meanwhile, the listed company will also raise 800 million yuan through issuing shares at 23.68 yuan per share. Four specialized targets, including Xie Shihuang, co-founder of Alibaba, will participate in the subscription.
"Crack" and "Pediatric Crack" products of Asian Pharmacy are very famous. Based on the commitment, Asian Pharmacy will gain a net profit of 127 million, 280 million and 444 million yuan from 2016 to 2018. During the trading suspension of Goldstone Orient New Material Equipment, a 10-for-10 conversion of capital surplus into shares combined with 1 yuan dividend will be carried out as allocation scheme in annual report.
○ Sanxia Paints to buy methionine asset at RMB3.1 bln to enter into fodder industry
------
Chongqing Sanxia Paints Co., Ltd. (000565.SZ) plans to purchase 100 percent equity of Ningxia Unisplendour Tianhua Methionine Co., Ltd. by issuing shares at a price of 9 yuan per share through private placement to Chongqing Unisplendour Chemical Co., Ltd. Value of the underlying asset is expected to be 3.093 billion yuan. Major product of Ningxia Unisplendour Tianhua Methionine is DL-methionine of feed grade. According to earning commitment, its net profit after extraordinary gains and losses should reach 340 million yuan, 380 million yuan and 408 million yuan during 2017 and 2019 respectively. After this deal is done, Chongqing Unisplendour Chemical will become the listed company's largest shareholder with holding 44.22 percent equity, but Chongqing State-owned Assets Supervision and Administration Commission is still the listed company's actual controller.
TOP
○ Sunshine Laser ＆ Electronics Technology to acquire NEEQ-listed company at RMB221 mln
------
Shenzhen Sunshine Laser ＆ Electronics Technology Co., Ltd. (300227.SZ) plans to acquire 100 percent equity of a NEEQ-listed company Shanghai JDT Technology Corp., Ltd. at a total cost of 221 million yuan by issuing shares at a price of 22.18 yuan per share and paying in cash. Meanwhile, it intends to raise 132 million yuan of supporting funds by issuing shares at a price of 21.28 yuan per share through private placement. JDT Technology is engaged in manufacturing and sales of test fixture for production use and automatic checkout equipment products. The counterparty promises that net profit JDT Technology will reach 15 million yuan, 23 million yuan and 31 million yuan during 2016 and 2018 respectively.
○ Tianrun Crankshaft to acquire Modern Metal ＆ Refining to improve industrial chain
------
Tianrun Crankshaft Co., Ltd. (002283.SZ) plans to buy 100 percent equity of Modern Metal ＆ Refining Ltd. at a total cost of 770 million yuan by issuing 62.83 million shares at a price of 7.48 yuan per share and paying 300 million yuan in cash. In addition, it will raise supporting funds of 470 million yuan by issuing shares at a price of 7.48 yuan per share through private placement to Dingli Jiuding. Modern Metal ＆ Refining is specialized in development and sales of aluminum alloy die-casting components of automobile and its net profit will not be less than 60 million yuan, 75 million yuan and 99 million yuan during 2016 and 2018 respectively according to performance commitment. Tianrun Crankshaft proposed a 10-for-10 conversion of capital surplus into shares combined with 0.4 yuan dividend for every 10 shares according to its annual report during period of trading suspension.
○ Substantial shareholder of Tianma Bearing Group to transfer controlling right at RMB3 bln, Xu Maodong becomes actual controller
------
Khorgos Tianma Venture Capital Investment Group Co., Ltd., controlling shareholder of Tianma Bearing Group Co., Ltd. (002122.SZ), signed share transferring agreement with Kashgar Galaxy Venture Capital Co., Ltd. on Oct. 11 to transfer 356 million shares (accounting for 29.97 percent of the total share capital) of the listed company to the latter. Total value of the shares to be transferred records 2.937 million yuan. After the deal is completed, the listed company's controlling shareholder will be changed from Tianma Venture Capital Investment to Galaxy Venture Capital and actual controller will be Xu Maodong.
Galaxy Venture Capital is open to adjust the listed company's asset and business. Galaxy Venture Capital and Xu are the actual controllers of Zhejiang Busen Garments Co., Ltd. (002569.SZ) with holding 29.86 percent equity. Besides, they also hold 5.66 percent equity in Zhejiang Dragon Pipe Manufacturing Co., Ltd. (002619.SZ) and 22.32 percent equity in US-listed company WOWO Limited.
○ Shengyang Science And Technology to buy 2 firms at over RMB800 mln
------
Zhejiang Shengyang Science And Technology Co., Ltd. (603703.SH) plans to buy 100 percent equity of Zhejiang Qiusheng Photoelectric Technology Co., Ltd. and 90 percent equity of Jiangsu Kemaite Technology Development Co., Ltd. at a total cost of 805 million yuan by issing 27,275,800 shares at a price of 22.39 yuan per share and paying 194 million yuan in cash. In addition, the company intends to raise 457 million yuan by issuing shares at a price of 24.70 yuan per share from particular investors including its actual controller Ye Liming.
Qiusheng Photoelectric Technology is engaged in research and sales of small-sized display devices and becomes supplier of Haier, Midea and Whirlpool. According to commitment, its net profit will be no less than 38 million yuan, 60 million yuan and 69 million yuan during 2016 and 2018 respectively. Kemaite Technology Development is specialized in R＆D and manufacturing of various shielding and insulating compound material. Its net profit will be 10.5 million yuan, 14 million yuan and 17 million yuan during 2016 and 2018 respectively.
○ Haige Communications to buy military assets at RMB1.1 bln
------
Guangzhou Haige Communications Group Incorporated Company plans to buy 40 percent equity of Guangdong Haige iCreate Technology Co., Ltd., 10 percent equity of Shaanxi Haitong Antenna Co., Ltd., 51 percent equity of Nanchang Jiarui Technology Development Co., Ltd. and 53.125 percent equity of Xi'an Chida Aircraft Parts Manufacturing Co., Ltd. at a total cost of 1.1 billion yuan by paying 129 million yuan in cash and issuing 93.3 million shares at a price of 10.46 yuan per share through private placement. The company intends to step into communication equipment of national defense field, metal for airplane use and components of compound material. In addition, it will also raise supporting funds of 976 million yuan by issuing shares at the same price through private placement from five targets including Guangzhou Radio Group.
○ Restructuring proposals of 3 firms approved
------
Restructuring proposals of Maanshan Dingtai Rare Earth ＆ New Materials Co., Ltd. (002352.SZ) and Shenzhen Aoto Electronics Co., Ltd. (002587.SZ) were approved by China Securities Regulatory Commission with condition, while that of Gohigh Data Networks Technology Co., Ltd. (000851.SZ) was approved unconditionally.
[Financial Reports Express]
○ Net profits of Truchum Advanced Materials And Technology and others expected to rise
------
Net profit of Anhui Truchum Advanced Materials And Technology Co., Ltd. (002171.SZ) is expected to hike by 200-250 percent in the first three quarters mainly due to R＆D business of high-end thermotechnical equipment and new material. Net profit of Beijing Tongtech Co., Ltd. (300379.SZ) is expected to hike by 138-167 percent in the first three quarters due to consolidated statements with Beijing Microvision Technology Co., Ltd. Net profit of Shenzhen Sunway Communication Co., Ltd. (300136.SZ) is expected to increase by 139-153 percent during the first and the third quarters thanks to grow in sales. Expected growth in profit of Zhejiang Haers Vacuum Containers Co., Ltd. (002615.SZ) is upwardly revised from 90-120 percent to 180-200 percent as overseas operating revenue beats expectation.
Net profit of Western Mining Co., Ltd. (601168.SH) is expected to hike by 828 percent in the first three quarters as reducing cost takes effect. Net profit of Toyou Feiji Electronics Co., Ltd. (300302.SZ) is predicted to surge by 145-170 percent due to continuous growth in operating revenue. Net profit of Wanhua Chemical Group Co., Ltd. (600309.SH) is expected to move up by 70 percent in the first three quarters due to improvement in profit-making ability of MDI product.
[Data Speaks]
○ Many listed companies may restart restructuring
------
The State Council released suggestions on lowering leverage ratio of enterprises yesterday and put forward seven major channels to lower leverage, including actively promoting merge and reorganization of enterprises and orderly conducting market-based debt-for-equity swap of banks. Reorganization of listed companies is expected to accelerate.
According to SSN's statistics, about 50 state-owned listed companies terminated major assets restructuring since the beginning of this year and 16 listed firms' commitment of no reorganization will expire within the year. Net profits of Shanghai Huahong Jitong Smart System Co., Ltd. (300330.SZ) in 2015 and the first half of this year both suffered loss. Anyuan Coal Industry Group Co., Ltd. (600397.SH) and Fujian Longxi Bearing (Group) Co., Ltd. (600592.SH) are expected to take loss in the third quarter of 2016. It is an urgent need for them to turn operation better.
[Trading Alarms]
○ HEKEDA Precision Cleaning Equipment and XCC to launch IPOs on Oct. 12
------
Shenzhen HEKEDA Precision Cleaning Equipment Co., Ltd. (002816.SZ) is going to launch IPO at 8.29 yuan per share with upper subscription limit of 10,000 shares for each account. The PE ratio is 22.98 times. The company is engaged in precision cleaning equipment. Zhejiang XCC Group Co., Ltd. is going to launch IPO at 8.8 yuan per share with upper subscription limit of 20,000 shares for each account. The PE ratio is 22.96 times. The company is specialized in bearing ring.
TOP
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