[Today's Guide]
○ Xi urges strengthened, innovative social governance for "safe China"
○ Laser and radar equipped for self-driving, Huawei to develop artificial intelligence
○ Ue Furniture to raise RMB600 bln. to invest ergonomic projects, Tianchen bought by Guohua Life Insurance to 5 percent limit the fourth time
○ E-Hualu Info Tech. wins contract for elderly care PPP project, Tiantan Biological Products forecasts growth
[SSN Focus]
○ Xi urges strengthened, innovative social governance for "safe China"
------
The national conference on public security governance held on Oct. 10 and 11. Chinese President Xi Jinping has called for strengthened and innovative social governance, stressing the need to improve systems to prevent and forecast risk. More efforts should be made to build a safe China at a higher level and further enhance people's sense of security. Stressing integrated and open governance efforts among various departments, Xi urged a focus on the rule of law and technological innovation and "a heightened capacity to forecast and prevent all kinds of risks."
Comment: The national defense industry has maintained a double-digit growth in recent years. However, the dependence on labors has reduced the informationization level and resulted in high surveillance cost. With the breakthroughs made in the reform of big data, artificial intelligence and other technologies, the IT application in national defense has kicked off. Industrial leaders are expected to expand market shares through competition. In terms of listed companies, Pci-suntek Technology Co., Ltd. (600728.SH) is competitive in the intelligent transportation image and video analysis industry and has obtained many projects in intelligent cities. A subsidiary of Anhui Sinonet ＆ Xinlong Science ＆ Technology Co., Ltd. (002298.SZ) has provided security services to the G20 Summit.
[SSN Selection]
○ China Banking Regulatory Commission (CBRC) recently released the list of three local AMCs. Supporting policies and rules on the conversion of debts into equities are under study and preparation.
○ The first global roadmap on Shenzhen-Hong Kong Stock Connect will be held in Hong Kong on Oct. 13. It is reported that the IPO Connect is still under preliminary study.
○ The Ministry of Finance issued a notice on further advancing the PPP, pointing out that public services with central financing supports can conduct pilots on two "compulsories".
○ The National Development and Reform Commission (NDRC) released the policies on promoting the healthy development of private investment. It will further open the access to the private investment market and promote the PPP model.
○ The NDRC released the pilot method on the regulation on the pricing of natural gas pipes and transportation. It paved the way for the reform of natural gas pricing and the separation of network and pipes.
○ According to the statistics of the China Association of Automobile Manufacturers, the output and sales of vehicles increased by 32.82 percent and 26.14 percent in September, representing an increase of 26.6 percent and 24.22 percent from August.
TOP
[Industry Information]
○ Laser and radar equipped for self-driving, tech giants make more input
------
Infineon Technologies, a German chips manufacturer, recently announced that it has acquired Innoluce, a semiconductor company in the Netherland. It will develop chip modules for the development of high-performance laser radar systems with the technologies of Innoluce. The president of the division of vehicle electronics of Infineon indicated that the acquisition marks a significant step in the laser radar industry, which will play an important role in the safety protection in self-driving. Infineon strives to ensure that all new vehicles are equipped with laser radar in the world.
Comment: Institutes believe that as a standard equipment to self-driving vehicles, laser radar has been recognized by Google and Baidu. Compared with the popular visible light camera, laser radar covers a longer distance with high precision and will not be affected by external lights. With the development of the market, the demand for laser radar will surge and the cost barrier in the commercial application will disappear. The three dimensional laser scanner technology of Hi-target Navigation Technology Co., Ltd. (300177.SZ) are applied in the development of laser radar products. A subsidiary of Hangzhou Great Star Industrial Co., Ltd. (002444.SZ) is engaged in the research and development as well as the sale of 3D laser radars.
○ Huawei to develop artificial intelligence, industry to see rapid development
------
Huawei Technologies Co., Ltd. announced that it will invest 1 million U.S. dollars in the cooperation with the University of California, Berkeley. The cooperation will cover deep learning, strengthened learning and machine learning as well as natural language processing and computer vision. Huawei may follow Microsoft and create a virtual assistant like Cortana. It may also develop a forecast service like the AI assistant of Google with its advanced AI technologies.
Comment:In September, Amazon, Google and other three giants jointly set up an AI cooperation organization, aiming to develop AI and provide AI examples so as to promote AI development. Institutions point out that the global AI market is expected to reach 165 billion U.S. dollars in 2016, and exceed 200 billion U.S. dollars in 2008. Beijing Ultrapower Software Co., Ltd. (300002.SZ) has made investment in AI by acquiring Dinfo Technology Co., Ltd. Insigma Technology Co., Ltd. (600797.SH) recently announced a plan to build an AI research center with Zhejiang University.
TOP
[Announcement Interpretation]
○ Ue Furniture to raise RMB600 bln. to invest ergonomic projects
------
Ue Furniture Co., Ltd. (603600.SH) proposes to raise 600 million yuan by issuing 12.71 million shares at prices no less than 47.2 yuan per share through private placement. Specifically, 270 million yuan will be invested in the ergonomic heath office chair production line with an annual production of 2 million sets of chairs. 230 million yuan will be invested in the ergonomic sofa production line with an annual production of 400,00 sets of sofa.
○ Tianchen bought by Guohua Life Insurance to 5 percent limit the fourth time
------
Shanghai Tianchen Co., Ltd. (600620.SH) was bought by Guohua Life Insurance Co., Ltd. to the 5 percent limit through the secondary market acquisition for the fourth time. Guohua Life Insurance increased shareholding in Tianchen by 34.33 million shares (accounting for 5 percent of the company's total share capital) at prices from 12.89 yuan to 15.9 yuan per share from Sept.2 to Oct. 10, making its total shareholdings in the company reach 137 million shares (accounting for 20 percent of the company's total share capital). Guohua Life Insurance said that it will continue to increase shareholding in the company by no less than 10 million shares in the coming 12 months, but has no intention to gain the listed company's controlling right or participate in its operation. The company increased shareholding in the company as it intends to transform. It also has no plans for major events. Currently, its substantial shareholder holds 29.17 percent shares in the company.
Comment: Guohua Life Insurance Co., Ltd. bought shares of the listed company to the 5 percent limit through the secondary market acquisition for the first time on July 15. Later, it continued to increase shareholding in the company to 10 percent and 15 percent as of Aug. 4 and Aug. 26. As of today, the substantial shareholder Shanghai Zhongsheng Hongqiao Enterprise Management Co., Ltd. also increased shareholding in the company. The company suspended trading twice for plans to buy environmental protection and education assets to seek for transformation, but failed.
TOP
○ E-Hualu Info Tech. wins contract for elderly care PPP project
------
Beijing E-Hualu Info Technology Co.,Ltd. (300212.SZ) won the contract for a intelligent elderly care service PPP project in Penglai City with a total investment of 707.9 million yuan. The project will build comprehensive elderly care community. The project is a key step for the company's entering in the elderly care sector.
○ Palm Eco-Town Development Co., Ltd. (002431.SZ) signed a cooperation intention agreement in the "special town" project. The project is under a PPP cooperation with a total investment of 3 billion yuan, accounting for 68 percent of the company's 2015 audited operating revenue.
[Financial Reports Express]
○ Tiantan Biological Products and others forecast growth
------
Beijing Tiantan Biological Products Corporation Limited (600161.SH) forecasts a growth of 3-4 times for the first three quarters mainly due to a surge in profits from blood products. Beijing Sinnet Technology Co., Ltd. (300383.SZ) forecasts a growth of 168-195 percent for the first three quarters mainly due to the consolidation of the financial statement of Meganest Technology Co., Ltd. and Ggrant Technology Co., Ltd. Gosuncn Technology Group Co.,Ltd. (300098.SZ) forecasts a growth of 222-230 percent for the first three quarters mainly because its big data business, communication safety business and road traffic safety business have maintained high growth. Gosuncn Technology Group Co., Ltd. (000032.SZ) forecasts a growth of 17-19 times for the first three quarters mainly because it acquired more assets.
Shandong Xiantan Co., Ltd. (002746.SZ) revises up its forecast to a growth of 11 times for the first three quarters mainly because the price of its raw materials has not increased as expected and the price of chicken decreased slowly. Jiangsu Fasten Company Limited (000890.SZ) forecasts a growth of 42-46 times for the first three quarters mainly due to the consolidation of the financial statement of Shanghai Mosan Factoring Co., Ltd. and gaining profits by transferring 100 percent equities of three subsidiaries. Leking Wellness Co., Ltd. (300247.SZ) forecasts a growth of 140-168percent for the first three quarters mainly due to the consolidation of the financial statement of Jiugong Health Industry Co., Ltd. Kunming Chuan Jin Nuo Chemical Co., Ltd. (300505.SZ) forecasts a growth of 131-142 percent for the first three quarters mainly due to growth in sales and decrease in financial cost.
[Trading Alarms]
○ Huangshan Capsule to conduct IPO on Oct. 13
------
Huangshan Capsule Co., Ltd. (002817.SZ) will offer shares at 13.88 yuan per share with an upper limit of 8,500 shares for each applicant. The company's PE ratio is 22.98 times. The company is mainly engaged in empty capsule for drug use.
TOP
○ Xi urges strengthened, innovative social governance for "safe China"
○ Laser and radar equipped for self-driving, Huawei to develop artificial intelligence
○ Ue Furniture to raise RMB600 bln. to invest ergonomic projects, Tianchen bought by Guohua Life Insurance to 5 percent limit the fourth time
○ E-Hualu Info Tech. wins contract for elderly care PPP project, Tiantan Biological Products forecasts growth
[SSN Focus]
○ Xi urges strengthened, innovative social governance for "safe China"
------
The national conference on public security governance held on Oct. 10 and 11. Chinese President Xi Jinping has called for strengthened and innovative social governance, stressing the need to improve systems to prevent and forecast risk. More efforts should be made to build a safe China at a higher level and further enhance people's sense of security. Stressing integrated and open governance efforts among various departments, Xi urged a focus on the rule of law and technological innovation and "a heightened capacity to forecast and prevent all kinds of risks."
Comment: The national defense industry has maintained a double-digit growth in recent years. However, the dependence on labors has reduced the informationization level and resulted in high surveillance cost. With the breakthroughs made in the reform of big data, artificial intelligence and other technologies, the IT application in national defense has kicked off. Industrial leaders are expected to expand market shares through competition. In terms of listed companies, Pci-suntek Technology Co., Ltd. (600728.SH) is competitive in the intelligent transportation image and video analysis industry and has obtained many projects in intelligent cities. A subsidiary of Anhui Sinonet ＆ Xinlong Science ＆ Technology Co., Ltd. (002298.SZ) has provided security services to the G20 Summit.
[SSN Selection]
○ China Banking Regulatory Commission (CBRC) recently released the list of three local AMCs. Supporting policies and rules on the conversion of debts into equities are under study and preparation.
○ The first global roadmap on Shenzhen-Hong Kong Stock Connect will be held in Hong Kong on Oct. 13. It is reported that the IPO Connect is still under preliminary study.
○ The Ministry of Finance issued a notice on further advancing the PPP, pointing out that public services with central financing supports can conduct pilots on two "compulsories".
○ The National Development and Reform Commission (NDRC) released the policies on promoting the healthy development of private investment. It will further open the access to the private investment market and promote the PPP model.
○ The NDRC released the pilot method on the regulation on the pricing of natural gas pipes and transportation. It paved the way for the reform of natural gas pricing and the separation of network and pipes.
○ According to the statistics of the China Association of Automobile Manufacturers, the output and sales of vehicles increased by 32.82 percent and 26.14 percent in September, representing an increase of 26.6 percent and 24.22 percent from August.
TOP
[Industry Information]
○ Laser and radar equipped for self-driving, tech giants make more input
------
Infineon Technologies, a German chips manufacturer, recently announced that it has acquired Innoluce, a semiconductor company in the Netherland. It will develop chip modules for the development of high-performance laser radar systems with the technologies of Innoluce. The president of the division of vehicle electronics of Infineon indicated that the acquisition marks a significant step in the laser radar industry, which will play an important role in the safety protection in self-driving. Infineon strives to ensure that all new vehicles are equipped with laser radar in the world.
Comment: Institutes believe that as a standard equipment to self-driving vehicles, laser radar has been recognized by Google and Baidu. Compared with the popular visible light camera, laser radar covers a longer distance with high precision and will not be affected by external lights. With the development of the market, the demand for laser radar will surge and the cost barrier in the commercial application will disappear. The three dimensional laser scanner technology of Hi-target Navigation Technology Co., Ltd. (300177.SZ) are applied in the development of laser radar products. A subsidiary of Hangzhou Great Star Industrial Co., Ltd. (002444.SZ) is engaged in the research and development as well as the sale of 3D laser radars.
○ Huawei to develop artificial intelligence, industry to see rapid development
------
Huawei Technologies Co., Ltd. announced that it will invest 1 million U.S. dollars in the cooperation with the University of California, Berkeley. The cooperation will cover deep learning, strengthened learning and machine learning as well as natural language processing and computer vision. Huawei may follow Microsoft and create a virtual assistant like Cortana. It may also develop a forecast service like the AI assistant of Google with its advanced AI technologies.
Comment:In September, Amazon, Google and other three giants jointly set up an AI cooperation organization, aiming to develop AI and provide AI examples so as to promote AI development. Institutions point out that the global AI market is expected to reach 165 billion U.S. dollars in 2016, and exceed 200 billion U.S. dollars in 2008. Beijing Ultrapower Software Co., Ltd. (300002.SZ) has made investment in AI by acquiring Dinfo Technology Co., Ltd. Insigma Technology Co., Ltd. (600797.SH) recently announced a plan to build an AI research center with Zhejiang University.
TOP
[Announcement Interpretation]
○ Ue Furniture to raise RMB600 bln. to invest ergonomic projects
------
Ue Furniture Co., Ltd. (603600.SH) proposes to raise 600 million yuan by issuing 12.71 million shares at prices no less than 47.2 yuan per share through private placement. Specifically, 270 million yuan will be invested in the ergonomic heath office chair production line with an annual production of 2 million sets of chairs. 230 million yuan will be invested in the ergonomic sofa production line with an annual production of 400,00 sets of sofa.
○ Tianchen bought by Guohua Life Insurance to 5 percent limit the fourth time
------
Shanghai Tianchen Co., Ltd. (600620.SH) was bought by Guohua Life Insurance Co., Ltd. to the 5 percent limit through the secondary market acquisition for the fourth time. Guohua Life Insurance increased shareholding in Tianchen by 34.33 million shares (accounting for 5 percent of the company's total share capital) at prices from 12.89 yuan to 15.9 yuan per share from Sept.2 to Oct. 10, making its total shareholdings in the company reach 137 million shares (accounting for 20 percent of the company's total share capital). Guohua Life Insurance said that it will continue to increase shareholding in the company by no less than 10 million shares in the coming 12 months, but has no intention to gain the listed company's controlling right or participate in its operation. The company increased shareholding in the company as it intends to transform. It also has no plans for major events. Currently, its substantial shareholder holds 29.17 percent shares in the company.
Comment: Guohua Life Insurance Co., Ltd. bought shares of the listed company to the 5 percent limit through the secondary market acquisition for the first time on July 15. Later, it continued to increase shareholding in the company to 10 percent and 15 percent as of Aug. 4 and Aug. 26. As of today, the substantial shareholder Shanghai Zhongsheng Hongqiao Enterprise Management Co., Ltd. also increased shareholding in the company. The company suspended trading twice for plans to buy environmental protection and education assets to seek for transformation, but failed.
TOP
○ E-Hualu Info Tech. wins contract for elderly care PPP project
------
Beijing E-Hualu Info Technology Co.,Ltd. (300212.SZ) won the contract for a intelligent elderly care service PPP project in Penglai City with a total investment of 707.9 million yuan. The project will build comprehensive elderly care community. The project is a key step for the company's entering in the elderly care sector.
○ Palm Eco-Town Development Co., Ltd. (002431.SZ) signed a cooperation intention agreement in the "special town" project. The project is under a PPP cooperation with a total investment of 3 billion yuan, accounting for 68 percent of the company's 2015 audited operating revenue.
[Financial Reports Express]
○ Tiantan Biological Products and others forecast growth
------
Beijing Tiantan Biological Products Corporation Limited (600161.SH) forecasts a growth of 3-4 times for the first three quarters mainly due to a surge in profits from blood products. Beijing Sinnet Technology Co., Ltd. (300383.SZ) forecasts a growth of 168-195 percent for the first three quarters mainly due to the consolidation of the financial statement of Meganest Technology Co., Ltd. and Ggrant Technology Co., Ltd. Gosuncn Technology Group Co.,Ltd. (300098.SZ) forecasts a growth of 222-230 percent for the first three quarters mainly because its big data business, communication safety business and road traffic safety business have maintained high growth. Gosuncn Technology Group Co., Ltd. (000032.SZ) forecasts a growth of 17-19 times for the first three quarters mainly because it acquired more assets.
Shandong Xiantan Co., Ltd. (002746.SZ) revises up its forecast to a growth of 11 times for the first three quarters mainly because the price of its raw materials has not increased as expected and the price of chicken decreased slowly. Jiangsu Fasten Company Limited (000890.SZ) forecasts a growth of 42-46 times for the first three quarters mainly due to the consolidation of the financial statement of Shanghai Mosan Factoring Co., Ltd. and gaining profits by transferring 100 percent equities of three subsidiaries. Leking Wellness Co., Ltd. (300247.SZ) forecasts a growth of 140-168percent for the first three quarters mainly due to the consolidation of the financial statement of Jiugong Health Industry Co., Ltd. Kunming Chuan Jin Nuo Chemical Co., Ltd. (300505.SZ) forecasts a growth of 131-142 percent for the first three quarters mainly due to growth in sales and decrease in financial cost.
[Trading Alarms]
○ Huangshan Capsule to conduct IPO on Oct. 13
------
Huangshan Capsule Co., Ltd. (002817.SZ) will offer shares at 13.88 yuan per share with an upper limit of 8,500 shares for each applicant. The company's PE ratio is 22.98 times. The company is mainly engaged in empty capsule for drug use.
TOP
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