[Today's Guide]
○ State Council executive meeting supports ancillary rehabilitation devices industry, capitals speed up in investing
○ 13th Five-year Plan on petrochemical and chemical industries released, robot testing and certification system to establish
○ Sanonda to acquire ADAMA, Shougang bought by director of K2 Real Estate to 5 pct threshold
○ Evergrande Life Insurance bought Kingland Pipeline and Technologies, 70 pct companies on New Third Board expect profit growth in Q3
[SSN Focus]
○ State Council executive meeting supports ancillary rehabilitation devices industry, capitals speed up in investing
------
The executive meeting of the State Council held on Oct. 14 determined measures to facilitate the development of the ancillary rehabilitation devices industry to meet the urgent demands of the aged, the disabled, the injured and patients. The meeting introduced series of fiscal and social security policies, including adopting the industry into the coverage of relevant financial supports for mass entrepreneurship and crowd funding. The high-end rehabilitation devices and product can be adopted into the coverage of the pilot insurance compensation for the first key technical equipment. It encourages the gradual adoption of basic therapeutic ancillary devices into the payment coverage of basic medical insurance.
Comment: Rehabilitation therapy serves as an active supplement to clinical medical treatment. With the aging of the population in China, the demand for rehabilitation therapy caused by aged diseases is increasing. The revenue of rehabilitation departments of public hospitals and public rehabilitation hospitals has been increasing significantly in recent years. Capitals are actively in investing in rehabilitation therapy. The procurement demand for ancillary rehabilitation devices and other machinery will also increase correspondingly. Among A-share companies, the products of HL Corp (Shenzhen) (002105.SZ) and Jiangsu Yuyue Medical Equipment ＆ Supply Co., Ltd. (002223.SZ) cover wheelchairs, walking aids and other industries. Leking Wellness Co., Ltd. (300247.SZ) acquired a manufacturer of massage armchairs. Guangdong Jinming Machinery Co., Ltd. (300281.SZ) cooperates with Tsinghua University in the research and development of rehabilitation robot products.
◆ The meeting also determined policy measures on further expanding domestic consumption, including removing systematic and institutional barriers in the consumption for the aged care, education and sports and increase the effective supply in the tourism, cultural and other industries. It will introduce guidance on facilitating the development of fitness and entertainment industries, promoting the upgrading of traditional consumption and improving the consumption environment.
[SSN Selection]
○ China Securities Regulatory Commission (CSRC) approved the IPO applications of 14 enterprises, including Wujiang Rural Commercial Bank, on Oct. 14. It also published the investigation results on three typical cases on making up and spreading false information.
○ China Securities Depository and Clearing Co., Ltd. released the latest revised Guidance on Businesses of Securities Accounts on Oct. 14, specifying that an individual can open a maximum of three accounts of the same category.
○ The Shenzhou-11 manned spacecraft will be launched at 7:30am on Oct. 17. Tiangong-2 is ready to dock with it.
○ The 28th Meeting of the Parties to the Montreal Protocol reached an agreement on controlling HFCs on Oct. 28, which will facilitate the upgrading of the fluorine chemical industry.
○ Listed companies under Sinochem Group and ChemChina denied rumors about the consolidation of the two groups, indicating that they have not received any information from the government.
○ Yunnan Tin Holdings and China Construction Bank Corporation (CCB, 00939.HK; 601939.SH) reached a debt-for-equity swap agreement with a total amount of nearly 5 billion yuan on Oct. 16, making it the first debt-for-equity swap program in the successful marketization of local state-owned enterprises.
TOP
[Industry Information]
○ 13th Five-year Plan on petrochemical and chemical industries released, more chemical new materials to be self-supplied
------
The Ministry of Industry and Information Technology (MIIT) released the Plan on the Development of the Petrochemical and Chemical Industries (2016-2020) on Oct. 14, which sets series targets, including effectively relieving excessive capacity for traditional chemical products and significantly improving the capacity in guarantee the olefin, arene and other basic materials and new chemical materials. In terms of new chemical materials, it will speed up in the development of high-performance carbon fibers and composite materials, graphene and other high-end products. It will improve the technical levels of electronic chemical products and focus on the development of high-end fluorine and silicone polymers. It will also speed up in the development of 3D printing materials.
Comment: The current proportion of self-supplied new chemical materials and high-end professional chemical products is relative low. Driven by policy supports and the increasing demand in the downstream, more replacements with homemade products are expected. Securities companies believe that Fujian Haiyuan Automatic Equipments Co., Ltd. (002529.SZ) has mastered key technologies in the industrialization of carbon fibers with the experiences in the production of relevant hydraumatic equipment. Zhejiang Juhua Co., Ltd. (600160.SH), a leader in the fluorine chemical industry, is actively developing electronic chemical products for integrated circuits.
○ Robot testing and certification system to establish to promote healthy development of industry
------
Xinhua News Agency reported that ministries and commissions are promoting the establishment of the Chinese robot industrial standards and testing and certification systems. The first robots certification program has been initiated. The certification logo and the first certified enterprises will be officially published soon. It is estimated aht the annual output of industrial robots with Chinese own brands will reach 100,000 and the annual sales revenue from service robots will exceed 30 billion yuan by 2020.
Comment: Currently, the Chinese robot industry still faces absence of key and core technologies and depends on import of key components. The standard on products, integration and testing lags behind. The establishment of the testing and certification system will promote the healthy development of the robot industry and leaders in the industry will see rapid development. A subsidiary of Canny Elevator Co., Ltd. (002367.SZ) is principally engaged in household intelligent robots. It has reached strategic cooperation with the Chinese Academy of Sciences and other scientific research institutes. Midea Group Co., Ltd. (000333.SZ) proposes to acquire Kuka Group to develop service robots.
TOP
[Announcement Interpretation]
○ Sanonda to acquire ADAMA with RMB18.5 bln
------
Hubei Sanonda Co., Ltd. (000553.SZ) proposes to issue shares to ChemChina Agrochemical Corporation, the controlling shareholder of the company, to acquire 100 percent equities of ADAMA, the seventh biggest pesticide manufacturer in the world, held by it with a consideration of 18,567 million yuan. Meanwhile, it plans to raise 2.5 billion yuan for the payment of the repurchase of B shares. The shares are to be issued at 10.2 yuan per share through private placement. ChemChina will directly hold 70.11 percent shares of the company and become the controlling shareholder of the company after the completion of the transaction and the cancellation of B shares.
Comment: The transaction is a key step in the state-owned enterprises conducted by ChemChina. It will improve the voice of state-owned capitals in the international agricultural chemical industry.
○ Shougang bought by director of K2 Real Estate and its parties acting in concert to 5 pct threshold
------
Beijing Shougang Co., Ltd. (000959.SZ) announced that six companies including Beijing Yizhen Technology, which are parties acting in concert, have bought in total 265 million shares of the company from August to Oct. 13, accounting for 5 percent of the company's total equities. The average price of the share purchase range from 4.97 yuan to 5.28 yuan. The buyers are optimistic about the prospect of Shougang, especially great opportunities in supply side reform, integration of Beijing-Tianjin-Hebei and SOEs reform.
Comment: the above six companies are ultimately controlled by Cui Wei, Sang Chunhua, Shao Jiafu and Yang Youting. Cui is director of Beijing K2 Real Estate, which focus on the development on medium to high- end real estate. Shougang has turned deficit into profits in the first three quarters of the year. In September, it suspended trading to plan for major issues, but was finally terminated due to the conditions are premature. The company is still expected to restructure in the future.
TOP
○ Evergrande Life Insurance bought Kingland Pipeline and Technologies close to 5 pct threshold
------
The quarterly report of Zhejiang Kingland Pipeline and Technologies Co., Ltd. (002443.SZ) shows that traditional portfolio A and all-purpose portfolio B of Evergrande Life Insurance Co. Ltd. have entered the company's list of shareholders. As of the end of September, the shareholding percentages were 3.13 percent and 1.83 percent respectively, the total of which is close to the 5 percent threshold
○ Sokon Industry proposes to buy electric vehicle power system asset with RMB95 mln
------
Chongqing Sokon Industry Group Co., Ltd. (601127.SH) proposes to buy the entire equities of ACP and Hong Kong Yima and Yima Xianfeng, and all related companies and entities engaged in new energy automotive businesses such as electric drive system, control system and battery system, as well as trademarks, patents and other intangible assets. Tesla has used ACP's license patent for core motor, ACP's customer include well-known car manufacturers such as BMW and Yulon Motor.
○ Xingmin Intelligent Transportation Systems raise RMB2.1 bln for Internet of vehicles
------
Xingmin Intelligent Transportation Systems (group) Co., ltd. (002355.SZ) proposes to issue 180 million shares through private placement to raise 2,165 million yuan, which will be used for the automatic production of car-mounted terminal T-Box and data operational service project, Intelligent vehicle terminal equipment production project. Actual controller Wang Zhicheng proposes to subscribe with no less than 100 million yuan.
○ China Film Co., ltd. (600977.SH) proposes to acquire 70 percent equities of Dalian Huachen Film Group with 553 million yuan. Dalian Huachen's net profits for 2015 and the first five months of 2016 were 69.24 million yuan and 19.82 million yuan respectively.
[Financial Reports Express]
○ 70 pct companies on New Third Board expect profit growth in Q3
------
As of Oct. 15, nearly 540 companies on the New Third Board disclosed the performance forecast for the third quarter. 397 companies, or 74 percent have expected profit growth. According to the cap of the year on year growth of net profits for the first three quarters, 116 companies expect growth of more than 100 percent. In particular, Fujian Green Pine Co., Ltd. (300132.SZ), Beijing Easpring Material Technology Co., Ltd. (300073.SZ), Jiangsu Xinning Modern Logistics Co., Ltd. (300013.SZ), Zhanjiang Guolian Aquatic Products Co., Ltd. (300094.SZ), Shenzhen Sunline Tech Co., Ltd. (300348.SZ), HC SemiTek Corporation (300323.SZ), Bode Energy Equipment Co., Ltd. (300023.SZ), Xiamen 35.com Technology Co., Ltd. (300051.SZ) and The Great Wall of Culture Group Holding Co., Ltd. Guangdong (300089.SZ) expect more than 10 times of profit growth. Besides, 24 companies including 35.com Technology, Changsha Kaiyuan Instruments Co., Ltd. (300338.SZ) and Sichuan Kexin Mechanical and Electrical Equipment Co., Ltd. (300092.SZ) turned deficits into profits in the third quarter.
As to industries, material, software service and special equipment manufacturing have witnessed good performance. Take Beijing Easpring Material Technology Co., Ltd. (300073.SZ) for example, the company expect net profit of 60 million to 63 million yuan, increasing by 3,057.4 percent to 3,215.27 percent, as demand for the company's lithium battery anode material is strong and its vehicle dynamic multiple material is in full production. At the same time, its previously acquired subjects have been combined to the financial statements.
○ Digital China Group expects growth
------
Digital China Group Co., ltd. (000034.SZ) expect over 11 times growth for the first three quarters, primarily due to earnings of 190 million yuan derived from disposing of subsidiaries and combining Digital China into its financial statements. Tonghua Golden-horse Pharmaceutical Industry Co., ltd. (000766.SZ) expects 17 times growth in the first three quarters, primarily due to the combining of Sanctity Biological Pharmaceutical and Yonkon Pharmacy into its financial statements. Unisplendour Corporation Limited (000938.SZ) expects 3 times growth in the first three quarters, primarily due to combining H3C into its financial statements.
Jizhong Energy Resources Co., Ltd. (000937.SZ) expects over 400 times growth in the first three quarters, primarily due to the rebound of coal price. Bengang Steel Plates Co., Ltd. (000761.SZ) expects 2.5 times growth in the first three quarters, primarily due to the pickup of steel price.
[Trading Alarms]
○ Hangzhou Electronic Soul Network Technology IPO to debut from Oct. 17
------
Hangzhou Electronic Soul Network Technology Co., Ltd. (732258.SZ) will offer for subscription at 15.62 yuan per share, representing PE ratio of 18.16 times. The upper limit of subscription is 24,000 shares. The company is primarily engaged in online games.
[Weekly Review]
○ Odds of money making increases as funds become active
------
The market last week is quite different from the period before the National Day Holidays, as funds were more sensitive to various information, and are more tolerant to the surge of the market. The SSN on Oct. 10 reported that the debt-for-equity swap conceptual stock Hainan Haide Industry Co., Ltd. (000567.SZ) has soared to the daily limit of 10 percent consecutively, and the SOEs reform conceptual stock China United Network Communications Limited (600050.SH) reported on Oct.9 also outperformed the blue-chip stocks.
There will be no long vocations before the Spring Festival, and institutions that have not make much profit are eager to take actions in the remainder of the year. Investigations shows that private funds become increasingly confident about the future market in October, and a greater percentage of private funds (26 percent) are planning to increase buying, in comparison with institutions that are planning to reduce shareholding (18 percent). In fact, Fed rates hike will not come until December. No bearish news is expected before that, thus there will be opportunities for making money in the stock market during the coming two months. Particularly, after the intensive implementation of adjustment policy in the real estate industry, money will flow into the A-share market as long as there is money making effect.
In the near term, the third quarterly report is a focus. According to economic indicators such as the pickup of PPI from negative to positive, housing sales and car sales, the overall performance of listed companies are rosy. Assets restructuring and SOEs reform are expected to continue, and traditional high share conversion and dividend and termination of Special Treatment will also emerge. In addition, various economic reform policies determined at the beginning of the year will likely to be implemented in the fourth quarter, therefore it cannot be rolled out that hot spots such as debt-for-equity swap will crop up.
TOP
○ State Council executive meeting supports ancillary rehabilitation devices industry, capitals speed up in investing
○ 13th Five-year Plan on petrochemical and chemical industries released, robot testing and certification system to establish
○ Sanonda to acquire ADAMA, Shougang bought by director of K2 Real Estate to 5 pct threshold
○ Evergrande Life Insurance bought Kingland Pipeline and Technologies, 70 pct companies on New Third Board expect profit growth in Q3
[SSN Focus]
○ State Council executive meeting supports ancillary rehabilitation devices industry, capitals speed up in investing
------
The executive meeting of the State Council held on Oct. 14 determined measures to facilitate the development of the ancillary rehabilitation devices industry to meet the urgent demands of the aged, the disabled, the injured and patients. The meeting introduced series of fiscal and social security policies, including adopting the industry into the coverage of relevant financial supports for mass entrepreneurship and crowd funding. The high-end rehabilitation devices and product can be adopted into the coverage of the pilot insurance compensation for the first key technical equipment. It encourages the gradual adoption of basic therapeutic ancillary devices into the payment coverage of basic medical insurance.
Comment: Rehabilitation therapy serves as an active supplement to clinical medical treatment. With the aging of the population in China, the demand for rehabilitation therapy caused by aged diseases is increasing. The revenue of rehabilitation departments of public hospitals and public rehabilitation hospitals has been increasing significantly in recent years. Capitals are actively in investing in rehabilitation therapy. The procurement demand for ancillary rehabilitation devices and other machinery will also increase correspondingly. Among A-share companies, the products of HL Corp (Shenzhen) (002105.SZ) and Jiangsu Yuyue Medical Equipment ＆ Supply Co., Ltd. (002223.SZ) cover wheelchairs, walking aids and other industries. Leking Wellness Co., Ltd. (300247.SZ) acquired a manufacturer of massage armchairs. Guangdong Jinming Machinery Co., Ltd. (300281.SZ) cooperates with Tsinghua University in the research and development of rehabilitation robot products.
◆ The meeting also determined policy measures on further expanding domestic consumption, including removing systematic and institutional barriers in the consumption for the aged care, education and sports and increase the effective supply in the tourism, cultural and other industries. It will introduce guidance on facilitating the development of fitness and entertainment industries, promoting the upgrading of traditional consumption and improving the consumption environment.
[SSN Selection]
○ China Securities Regulatory Commission (CSRC) approved the IPO applications of 14 enterprises, including Wujiang Rural Commercial Bank, on Oct. 14. It also published the investigation results on three typical cases on making up and spreading false information.
○ China Securities Depository and Clearing Co., Ltd. released the latest revised Guidance on Businesses of Securities Accounts on Oct. 14, specifying that an individual can open a maximum of three accounts of the same category.
○ The Shenzhou-11 manned spacecraft will be launched at 7:30am on Oct. 17. Tiangong-2 is ready to dock with it.
○ The 28th Meeting of the Parties to the Montreal Protocol reached an agreement on controlling HFCs on Oct. 28, which will facilitate the upgrading of the fluorine chemical industry.
○ Listed companies under Sinochem Group and ChemChina denied rumors about the consolidation of the two groups, indicating that they have not received any information from the government.
○ Yunnan Tin Holdings and China Construction Bank Corporation (CCB, 00939.HK; 601939.SH) reached a debt-for-equity swap agreement with a total amount of nearly 5 billion yuan on Oct. 16, making it the first debt-for-equity swap program in the successful marketization of local state-owned enterprises.
TOP
[Industry Information]
○ 13th Five-year Plan on petrochemical and chemical industries released, more chemical new materials to be self-supplied
------
The Ministry of Industry and Information Technology (MIIT) released the Plan on the Development of the Petrochemical and Chemical Industries (2016-2020) on Oct. 14, which sets series targets, including effectively relieving excessive capacity for traditional chemical products and significantly improving the capacity in guarantee the olefin, arene and other basic materials and new chemical materials. In terms of new chemical materials, it will speed up in the development of high-performance carbon fibers and composite materials, graphene and other high-end products. It will improve the technical levels of electronic chemical products and focus on the development of high-end fluorine and silicone polymers. It will also speed up in the development of 3D printing materials.
Comment: The current proportion of self-supplied new chemical materials and high-end professional chemical products is relative low. Driven by policy supports and the increasing demand in the downstream, more replacements with homemade products are expected. Securities companies believe that Fujian Haiyuan Automatic Equipments Co., Ltd. (002529.SZ) has mastered key technologies in the industrialization of carbon fibers with the experiences in the production of relevant hydraumatic equipment. Zhejiang Juhua Co., Ltd. (600160.SH), a leader in the fluorine chemical industry, is actively developing electronic chemical products for integrated circuits.
○ Robot testing and certification system to establish to promote healthy development of industry
------
Xinhua News Agency reported that ministries and commissions are promoting the establishment of the Chinese robot industrial standards and testing and certification systems. The first robots certification program has been initiated. The certification logo and the first certified enterprises will be officially published soon. It is estimated aht the annual output of industrial robots with Chinese own brands will reach 100,000 and the annual sales revenue from service robots will exceed 30 billion yuan by 2020.
Comment: Currently, the Chinese robot industry still faces absence of key and core technologies and depends on import of key components. The standard on products, integration and testing lags behind. The establishment of the testing and certification system will promote the healthy development of the robot industry and leaders in the industry will see rapid development. A subsidiary of Canny Elevator Co., Ltd. (002367.SZ) is principally engaged in household intelligent robots. It has reached strategic cooperation with the Chinese Academy of Sciences and other scientific research institutes. Midea Group Co., Ltd. (000333.SZ) proposes to acquire Kuka Group to develop service robots.
TOP
[Announcement Interpretation]
○ Sanonda to acquire ADAMA with RMB18.5 bln
------
Hubei Sanonda Co., Ltd. (000553.SZ) proposes to issue shares to ChemChina Agrochemical Corporation, the controlling shareholder of the company, to acquire 100 percent equities of ADAMA, the seventh biggest pesticide manufacturer in the world, held by it with a consideration of 18,567 million yuan. Meanwhile, it plans to raise 2.5 billion yuan for the payment of the repurchase of B shares. The shares are to be issued at 10.2 yuan per share through private placement. ChemChina will directly hold 70.11 percent shares of the company and become the controlling shareholder of the company after the completion of the transaction and the cancellation of B shares.
Comment: The transaction is a key step in the state-owned enterprises conducted by ChemChina. It will improve the voice of state-owned capitals in the international agricultural chemical industry.
○ Shougang bought by director of K2 Real Estate and its parties acting in concert to 5 pct threshold
------
Beijing Shougang Co., Ltd. (000959.SZ) announced that six companies including Beijing Yizhen Technology, which are parties acting in concert, have bought in total 265 million shares of the company from August to Oct. 13, accounting for 5 percent of the company's total equities. The average price of the share purchase range from 4.97 yuan to 5.28 yuan. The buyers are optimistic about the prospect of Shougang, especially great opportunities in supply side reform, integration of Beijing-Tianjin-Hebei and SOEs reform.
Comment: the above six companies are ultimately controlled by Cui Wei, Sang Chunhua, Shao Jiafu and Yang Youting. Cui is director of Beijing K2 Real Estate, which focus on the development on medium to high- end real estate. Shougang has turned deficit into profits in the first three quarters of the year. In September, it suspended trading to plan for major issues, but was finally terminated due to the conditions are premature. The company is still expected to restructure in the future.
TOP
○ Evergrande Life Insurance bought Kingland Pipeline and Technologies close to 5 pct threshold
------
The quarterly report of Zhejiang Kingland Pipeline and Technologies Co., Ltd. (002443.SZ) shows that traditional portfolio A and all-purpose portfolio B of Evergrande Life Insurance Co. Ltd. have entered the company's list of shareholders. As of the end of September, the shareholding percentages were 3.13 percent and 1.83 percent respectively, the total of which is close to the 5 percent threshold
○ Sokon Industry proposes to buy electric vehicle power system asset with RMB95 mln
------
Chongqing Sokon Industry Group Co., Ltd. (601127.SH) proposes to buy the entire equities of ACP and Hong Kong Yima and Yima Xianfeng, and all related companies and entities engaged in new energy automotive businesses such as electric drive system, control system and battery system, as well as trademarks, patents and other intangible assets. Tesla has used ACP's license patent for core motor, ACP's customer include well-known car manufacturers such as BMW and Yulon Motor.
○ Xingmin Intelligent Transportation Systems raise RMB2.1 bln for Internet of vehicles
------
Xingmin Intelligent Transportation Systems (group) Co., ltd. (002355.SZ) proposes to issue 180 million shares through private placement to raise 2,165 million yuan, which will be used for the automatic production of car-mounted terminal T-Box and data operational service project, Intelligent vehicle terminal equipment production project. Actual controller Wang Zhicheng proposes to subscribe with no less than 100 million yuan.
○ China Film Co., ltd. (600977.SH) proposes to acquire 70 percent equities of Dalian Huachen Film Group with 553 million yuan. Dalian Huachen's net profits for 2015 and the first five months of 2016 were 69.24 million yuan and 19.82 million yuan respectively.
[Financial Reports Express]
○ 70 pct companies on New Third Board expect profit growth in Q3
------
As of Oct. 15, nearly 540 companies on the New Third Board disclosed the performance forecast for the third quarter. 397 companies, or 74 percent have expected profit growth. According to the cap of the year on year growth of net profits for the first three quarters, 116 companies expect growth of more than 100 percent. In particular, Fujian Green Pine Co., Ltd. (300132.SZ), Beijing Easpring Material Technology Co., Ltd. (300073.SZ), Jiangsu Xinning Modern Logistics Co., Ltd. (300013.SZ), Zhanjiang Guolian Aquatic Products Co., Ltd. (300094.SZ), Shenzhen Sunline Tech Co., Ltd. (300348.SZ), HC SemiTek Corporation (300323.SZ), Bode Energy Equipment Co., Ltd. (300023.SZ), Xiamen 35.com Technology Co., Ltd. (300051.SZ) and The Great Wall of Culture Group Holding Co., Ltd. Guangdong (300089.SZ) expect more than 10 times of profit growth. Besides, 24 companies including 35.com Technology, Changsha Kaiyuan Instruments Co., Ltd. (300338.SZ) and Sichuan Kexin Mechanical and Electrical Equipment Co., Ltd. (300092.SZ) turned deficits into profits in the third quarter.
As to industries, material, software service and special equipment manufacturing have witnessed good performance. Take Beijing Easpring Material Technology Co., Ltd. (300073.SZ) for example, the company expect net profit of 60 million to 63 million yuan, increasing by 3,057.4 percent to 3,215.27 percent, as demand for the company's lithium battery anode material is strong and its vehicle dynamic multiple material is in full production. At the same time, its previously acquired subjects have been combined to the financial statements.
○ Digital China Group expects growth
------
Digital China Group Co., ltd. (000034.SZ) expect over 11 times growth for the first three quarters, primarily due to earnings of 190 million yuan derived from disposing of subsidiaries and combining Digital China into its financial statements. Tonghua Golden-horse Pharmaceutical Industry Co., ltd. (000766.SZ) expects 17 times growth in the first three quarters, primarily due to the combining of Sanctity Biological Pharmaceutical and Yonkon Pharmacy into its financial statements. Unisplendour Corporation Limited (000938.SZ) expects 3 times growth in the first three quarters, primarily due to combining H3C into its financial statements.
Jizhong Energy Resources Co., Ltd. (000937.SZ) expects over 400 times growth in the first three quarters, primarily due to the rebound of coal price. Bengang Steel Plates Co., Ltd. (000761.SZ) expects 2.5 times growth in the first three quarters, primarily due to the pickup of steel price.
[Trading Alarms]
○ Hangzhou Electronic Soul Network Technology IPO to debut from Oct. 17
------
Hangzhou Electronic Soul Network Technology Co., Ltd. (732258.SZ) will offer for subscription at 15.62 yuan per share, representing PE ratio of 18.16 times. The upper limit of subscription is 24,000 shares. The company is primarily engaged in online games.
[Weekly Review]
○ Odds of money making increases as funds become active
------
The market last week is quite different from the period before the National Day Holidays, as funds were more sensitive to various information, and are more tolerant to the surge of the market. The SSN on Oct. 10 reported that the debt-for-equity swap conceptual stock Hainan Haide Industry Co., Ltd. (000567.SZ) has soared to the daily limit of 10 percent consecutively, and the SOEs reform conceptual stock China United Network Communications Limited (600050.SH) reported on Oct.9 also outperformed the blue-chip stocks.
There will be no long vocations before the Spring Festival, and institutions that have not make much profit are eager to take actions in the remainder of the year. Investigations shows that private funds become increasingly confident about the future market in October, and a greater percentage of private funds (26 percent) are planning to increase buying, in comparison with institutions that are planning to reduce shareholding (18 percent). In fact, Fed rates hike will not come until December. No bearish news is expected before that, thus there will be opportunities for making money in the stock market during the coming two months. Particularly, after the intensive implementation of adjustment policy in the real estate industry, money will flow into the A-share market as long as there is money making effect.
In the near term, the third quarterly report is a focus. According to economic indicators such as the pickup of PPI from negative to positive, housing sales and car sales, the overall performance of listed companies are rosy. Assets restructuring and SOEs reform are expected to continue, and traditional high share conversion and dividend and termination of Special Treatment will also emerge. In addition, various economic reform policies determined at the beginning of the year will likely to be implemented in the fourth quarter, therefore it cannot be rolled out that hot spots such as debt-for-equity swap will crop up.
TOP
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