[Today's Guide]
○ Shanghai B-share index dropped over 6 pct, substantial impact on A shares not to be overestimated
○ Special project application guidelines issued for pilot work of "new energy automobile to enhance industrial development
○ MOC to promote main circulation network of national agricultural products, agriculture-involved e-commerce likely to benefit
○ Camel Group sets foot in electric logistcis vehilce, Firms including Kelida Building ＆ Decoration win big order
[SSN Focus]
○ Shanghai B-share index dropped over 6 pct, substantial impact on A shares not to be overestimated
------
Shanghai B-share index dropped over 6 percent on Oct. 17, a new low since June, with single-day turnover of 172 million shares and 1.15 billion yuan, which expanded four times compared to that of last Friday. Due to this, Shenzhen B-share index also dropped 2.43 percent, with turnover of 67.16 million shares and 415 million yuan. Shanghai composite index closed at a decline of 0.74 percent, ending consecutive rise for seven days.
Comment: State Administration of Taxation on Oct. 14 issued Management Method for Tax Information Due Diligence on Financial Accounts of Non-residents (exposure draft) to prevent overseas tax evasion, and Oct. 17 was the first trading day after this issuance, some viewpoints believed. The B-share market is now weak in liquidity, and just a small amount of concentrated sell-off will certainly cause sharp drop in the index. The decline rate of Shenzhen B-share index was much smaller than that of Shanghai B-share index, and no Shenzhen B-share company dropped to the daily limit of 10 percent, which shows that such sell-off this time was more likely to be carried out by individual Shanghai B-share investors. In terms of long-term trend, A-share trend mainly depends on internal factors. Currently, the central and local governments are greatly promoting the PPP projects, drives, including inventory supplement of industries, also support the economic stabilization, various macro-economic indicators and enterprises' production status have constantly rebounded for months, and structural investment opportunities driven by performances still exist.
[SSN Selection]
○ Shenzhen Stock Exchange issued a notice on Oct. 17 that whole-network test will be implemented on Oct. 22 and 23 for Shenzhen-Hong Kong Stock Connect program.
○ The total electricity consumption of the whole society increased 6.9 percent year on year in September, data of National Energy Administration shows.
○ The total investment scale of projects approved by National Development and Reform Commission has surpassed 200 billion yuan this month, which has not slowed down due to arriving of the end of this year, based on statistics.
○ It learnt that Shanxi Coking Coal Group Co., Ltd. has formulated a coal capacity release scheme of 330 working days, with newly-added output of 1.76 million tons for the fourth quarter based on original plan of 13.85 million tons.
○ Shanghai Huayi Group Corporation Limited (600623.SH) and Shanghai Tunnel Engineering Co., Ltd. (600820.SH) announced that their shares held by the substantial shareholder will be transferred to Shanghai Guosheng Group for free, for which State-owned Assets Supervision and Administration Commission of Shanghai Municipal Government has recently issued a notice.
TOP
[Industry Information]
○ 2017 special project application guidelines issued for pilot work of "new energy automobile to enhance industrial development
------
Ministry of Science and Technology recently issued "2017 special project application guidelines" for pilot work of "new energy automobile". It proposes to initiate 19 to 38 projects on 6 technical orientations in 2017, and arrange the total budget of 1.12 billion yuan, involving many aspects, such as power battery, battery management system, motor drive, automobile intelligence and etc. Based on information of Ministry of Industry and Information Technology (MIIT) on Oct. 17, survey teams from the MIIT and Ministry of Finance have recently gone for Chongqing city to jointly investigate the development of new energy automobile. The next step is to further improve the supporting policies and raise the entry threshold, the said teams indicated.
Comment: Along with punishment on subsidy cheating and adjustment for subsidy policies, the sales of new energy automobile is likely to soar in the fourth quarter, and especially, ternary lithium battery and power-driven logistics automobile industries will see newly-added market opportunities, institutions believed. In terms of listed companies, Zhejiang Founder Motor Co., Ltd. (002196.SZ) is powerful in market competitiveness for motor of power-driven logistics automobile; Shanghai Cooltech Power Co., Ltd. (300153.SZ) is positively deploying the operation of power-driven logistics automobile; EVE Energy Co., Ltd. (300014.SZ) actively invests in the capacity of ternary lithium battery, with a capacity of 3.5GWH expected to reach at the end of this year.
TOP
○ MOC to promote main circulation network of national agricultural products, agriculture-involved e-commerce likely to benefit
------
Ministry of Commerce (MOC) and China Development Bank recently issued a notice to work together to promote construction for main circulation network of national agricultural products. The MOC will plan and coordinate policy-related funds for such construction, and make clear what patterns and which regions will be supported. Recently, constructions for storage ＆ logistics facilities, commonweal-based market system and cold-chain logistics system of agricultural products will be focused on.
Comment: Agriculture-involved e-commerce will be constantly supported by policies. Rural and fresh-product e-commerce will also keep a high-speed growth. Listed companies positively investing in rural e-commerce are likely to supported by policy funds. In terms of listed companies in A-share market, Shenzhen Batian Ecotypic Engineering Co., Ltd. (002170.SZ) has signed cooperation agreement with Alibaba to strengthen influence of its agricultural material brands through deployment of cun.taobao.com in rural e-commerce. Chengdu Wintrue Holding Co., Ltd. (002539.SZ) opens nearly 60,000 compound fertilizer retail stores in villages and small towns. It plans to popularize construction of operation service system through experience center in county and experience store in towns to tackle three major problems that e-commerce faces in medium and small cities.
TOP
[Announcement Interpretation]
○Camel Group sets foot in electric logistics vehicle
------
Camel Group Co., Ltd. (601311.SH) signed a strategic cooperation agreement on poverty relief and people-benefit project with Zhong Fu Hui Min Industrial Development Co., Ltd. on Oct. 17. Both parties plan to conduct overall cooperation in promotion of pure electric logistics vehicle and charging service. According to the plan, the two companies will realize direct connection of production and demand by sending agricultural products of industrial bases to citizens. As a supplier of new energy vehicle products, Camel Group adopts new business model to provide systematic solutions to purchase, after-sales service and finance lease.
Comment: This cooperation will effectively drive the two companies to carry out cooperation in promotion of pure electric logistics vehicle and charging service and boost development of Camel Group and its subsidiary in new energy vehicle business.
○Firms including Kelida Building ＆ Decoration win big order
------
Suzhou Kelida Building ＆ Decoration Co., Ltd. (603828.SH) is a candidate of winning the bidding of PPP project of cultural innovation center of Taizhou Medical New ＆ Hi-tech Industrial Development Zone. Investment amount of the project is about 1.197 billion yuan. Total operating revenues of the company recorded 1.63 billion yuan in 2015. Glarun Group, a wholly-owned subsidiary of Glarun Technology Co., Ltd. (600562.SH), is a candidate of winning bidding of signal system project of urban railway system Line one of Xuzhou city. The investment amount is 236 million yuan.
Longjian Road＆Bridge Co., Ltd. (600853.SH) wins the bidding of engineering procurement construction of tunnel project of Liuwu New District in Lhasa with investment amount of 1 billion yuan. Shenzhen Wenke Landscape Co., Ltd. (002775.SZ) signed a contract with government of Shenbei New District of Shenyang city. The two parties will rely on development of wetland park, municipal road and bridge, water conservancy, livable country, ecological remediation, urban water supply, underground pipeline, urban sewage treatment plant, river contamination treatment and waterfront landscape of both riversides. The contract amount of this PPP project is about 2 billion yuan.
○Myhome Real Estate Development Group to raise RMB1.9 bln to invest in real estate through private placement
------
Myhome Real Estate Development Group Co., Ltd. (000667.SZ) plans to raise 1.9 billion yuan by issuing 516 million shares at a floor price of 3.68 yuan per share through private placement from its actual controller Liu Daoming. The fundraising will be invested in Wuhan Minglilu Image project, Wuhan Mingliu Mansion project and Qujiang project in Xi'an, the first two of which are urban village renovation project of Wuhan city. The company predicts that net profits of these three projects will reach 740 million yuan, 79.32 million yuan and 94.365 million yuan respectively.
○Laobaixing Pharmacy Chain Joint Stock incorporates two subsidiaries at RMB435 mln
------
Laobaixing Pharmacy Chain Joint Stock Company (603883.SH) plans to buy 49 percent equity of Chenzhou Company and 49 percent equity of Guangxi Company at a cost of 435 million yuan in cash. With the deal is done, Laobaixing Pharmacy Chain Joint Stock will hold 100 percent equity in the two companies. This move will help integrate resource and improve profitability of the listed company.
○Hisun Phar. to raise RMB1.172 bln by private placement from its own shareholders
------
Zhejiang Hisun Pharmaceutical Co., Ltd. (600267.SH) plans to raise 1.172 billion yuan by issuing 90.09 million shares at a price of 13 yuan per share from Haichang investment, Huina investment funded by the company's president Hai Hua and some senior managers and employee shareholding plan. The fundraising will be invested in technical improvement project of freeze-dried manufactured goods in west district of Yantou.
○Goldlok Toys Holdings (Guang Dong) Co., Ltd. (002348.SZ) plans to acquire 100 percent equity of Guangdong Fanaizhong Network Technology Co., Ltd. at 90 million yuan. The counterparty promises that net profit of Fanaizhong will not be less than 8 million yuan, 11 million yuan and 13 million yuan during 2016 and 2018 respectively.
[Trading Alarms]
○Xinhuanet to launch IPO on Oct. 18
------
Xinhuanet is going to launch IPO at a price of 27.69 yuan per share with upper subscription limit of 20,000 shares for each account. The PE ratio is 22.99 times. Xinhuanet is engaged in Internet news information service.
TOP
○ Shanghai B-share index dropped over 6 pct, substantial impact on A shares not to be overestimated
○ Special project application guidelines issued for pilot work of "new energy automobile to enhance industrial development
○ MOC to promote main circulation network of national agricultural products, agriculture-involved e-commerce likely to benefit
○ Camel Group sets foot in electric logistcis vehilce, Firms including Kelida Building ＆ Decoration win big order
[SSN Focus]
○ Shanghai B-share index dropped over 6 pct, substantial impact on A shares not to be overestimated
------
Shanghai B-share index dropped over 6 percent on Oct. 17, a new low since June, with single-day turnover of 172 million shares and 1.15 billion yuan, which expanded four times compared to that of last Friday. Due to this, Shenzhen B-share index also dropped 2.43 percent, with turnover of 67.16 million shares and 415 million yuan. Shanghai composite index closed at a decline of 0.74 percent, ending consecutive rise for seven days.
Comment: State Administration of Taxation on Oct. 14 issued Management Method for Tax Information Due Diligence on Financial Accounts of Non-residents (exposure draft) to prevent overseas tax evasion, and Oct. 17 was the first trading day after this issuance, some viewpoints believed. The B-share market is now weak in liquidity, and just a small amount of concentrated sell-off will certainly cause sharp drop in the index. The decline rate of Shenzhen B-share index was much smaller than that of Shanghai B-share index, and no Shenzhen B-share company dropped to the daily limit of 10 percent, which shows that such sell-off this time was more likely to be carried out by individual Shanghai B-share investors. In terms of long-term trend, A-share trend mainly depends on internal factors. Currently, the central and local governments are greatly promoting the PPP projects, drives, including inventory supplement of industries, also support the economic stabilization, various macro-economic indicators and enterprises' production status have constantly rebounded for months, and structural investment opportunities driven by performances still exist.
[SSN Selection]
○ Shenzhen Stock Exchange issued a notice on Oct. 17 that whole-network test will be implemented on Oct. 22 and 23 for Shenzhen-Hong Kong Stock Connect program.
○ The total electricity consumption of the whole society increased 6.9 percent year on year in September, data of National Energy Administration shows.
○ The total investment scale of projects approved by National Development and Reform Commission has surpassed 200 billion yuan this month, which has not slowed down due to arriving of the end of this year, based on statistics.
○ It learnt that Shanxi Coking Coal Group Co., Ltd. has formulated a coal capacity release scheme of 330 working days, with newly-added output of 1.76 million tons for the fourth quarter based on original plan of 13.85 million tons.
○ Shanghai Huayi Group Corporation Limited (600623.SH) and Shanghai Tunnel Engineering Co., Ltd. (600820.SH) announced that their shares held by the substantial shareholder will be transferred to Shanghai Guosheng Group for free, for which State-owned Assets Supervision and Administration Commission of Shanghai Municipal Government has recently issued a notice.
TOP
[Industry Information]
○ 2017 special project application guidelines issued for pilot work of "new energy automobile to enhance industrial development
------
Ministry of Science and Technology recently issued "2017 special project application guidelines" for pilot work of "new energy automobile". It proposes to initiate 19 to 38 projects on 6 technical orientations in 2017, and arrange the total budget of 1.12 billion yuan, involving many aspects, such as power battery, battery management system, motor drive, automobile intelligence and etc. Based on information of Ministry of Industry and Information Technology (MIIT) on Oct. 17, survey teams from the MIIT and Ministry of Finance have recently gone for Chongqing city to jointly investigate the development of new energy automobile. The next step is to further improve the supporting policies and raise the entry threshold, the said teams indicated.
Comment: Along with punishment on subsidy cheating and adjustment for subsidy policies, the sales of new energy automobile is likely to soar in the fourth quarter, and especially, ternary lithium battery and power-driven logistics automobile industries will see newly-added market opportunities, institutions believed. In terms of listed companies, Zhejiang Founder Motor Co., Ltd. (002196.SZ) is powerful in market competitiveness for motor of power-driven logistics automobile; Shanghai Cooltech Power Co., Ltd. (300153.SZ) is positively deploying the operation of power-driven logistics automobile; EVE Energy Co., Ltd. (300014.SZ) actively invests in the capacity of ternary lithium battery, with a capacity of 3.5GWH expected to reach at the end of this year.
TOP
○ MOC to promote main circulation network of national agricultural products, agriculture-involved e-commerce likely to benefit
------
Ministry of Commerce (MOC) and China Development Bank recently issued a notice to work together to promote construction for main circulation network of national agricultural products. The MOC will plan and coordinate policy-related funds for such construction, and make clear what patterns and which regions will be supported. Recently, constructions for storage ＆ logistics facilities, commonweal-based market system and cold-chain logistics system of agricultural products will be focused on.
Comment: Agriculture-involved e-commerce will be constantly supported by policies. Rural and fresh-product e-commerce will also keep a high-speed growth. Listed companies positively investing in rural e-commerce are likely to supported by policy funds. In terms of listed companies in A-share market, Shenzhen Batian Ecotypic Engineering Co., Ltd. (002170.SZ) has signed cooperation agreement with Alibaba to strengthen influence of its agricultural material brands through deployment of cun.taobao.com in rural e-commerce. Chengdu Wintrue Holding Co., Ltd. (002539.SZ) opens nearly 60,000 compound fertilizer retail stores in villages and small towns. It plans to popularize construction of operation service system through experience center in county and experience store in towns to tackle three major problems that e-commerce faces in medium and small cities.
TOP
[Announcement Interpretation]
○Camel Group sets foot in electric logistics vehicle
------
Camel Group Co., Ltd. (601311.SH) signed a strategic cooperation agreement on poverty relief and people-benefit project with Zhong Fu Hui Min Industrial Development Co., Ltd. on Oct. 17. Both parties plan to conduct overall cooperation in promotion of pure electric logistics vehicle and charging service. According to the plan, the two companies will realize direct connection of production and demand by sending agricultural products of industrial bases to citizens. As a supplier of new energy vehicle products, Camel Group adopts new business model to provide systematic solutions to purchase, after-sales service and finance lease.
Comment: This cooperation will effectively drive the two companies to carry out cooperation in promotion of pure electric logistics vehicle and charging service and boost development of Camel Group and its subsidiary in new energy vehicle business.
○Firms including Kelida Building ＆ Decoration win big order
------
Suzhou Kelida Building ＆ Decoration Co., Ltd. (603828.SH) is a candidate of winning the bidding of PPP project of cultural innovation center of Taizhou Medical New ＆ Hi-tech Industrial Development Zone. Investment amount of the project is about 1.197 billion yuan. Total operating revenues of the company recorded 1.63 billion yuan in 2015. Glarun Group, a wholly-owned subsidiary of Glarun Technology Co., Ltd. (600562.SH), is a candidate of winning bidding of signal system project of urban railway system Line one of Xuzhou city. The investment amount is 236 million yuan.
Longjian Road＆Bridge Co., Ltd. (600853.SH) wins the bidding of engineering procurement construction of tunnel project of Liuwu New District in Lhasa with investment amount of 1 billion yuan. Shenzhen Wenke Landscape Co., Ltd. (002775.SZ) signed a contract with government of Shenbei New District of Shenyang city. The two parties will rely on development of wetland park, municipal road and bridge, water conservancy, livable country, ecological remediation, urban water supply, underground pipeline, urban sewage treatment plant, river contamination treatment and waterfront landscape of both riversides. The contract amount of this PPP project is about 2 billion yuan.
○Myhome Real Estate Development Group to raise RMB1.9 bln to invest in real estate through private placement
------
Myhome Real Estate Development Group Co., Ltd. (000667.SZ) plans to raise 1.9 billion yuan by issuing 516 million shares at a floor price of 3.68 yuan per share through private placement from its actual controller Liu Daoming. The fundraising will be invested in Wuhan Minglilu Image project, Wuhan Mingliu Mansion project and Qujiang project in Xi'an, the first two of which are urban village renovation project of Wuhan city. The company predicts that net profits of these three projects will reach 740 million yuan, 79.32 million yuan and 94.365 million yuan respectively.
○Laobaixing Pharmacy Chain Joint Stock incorporates two subsidiaries at RMB435 mln
------
Laobaixing Pharmacy Chain Joint Stock Company (603883.SH) plans to buy 49 percent equity of Chenzhou Company and 49 percent equity of Guangxi Company at a cost of 435 million yuan in cash. With the deal is done, Laobaixing Pharmacy Chain Joint Stock will hold 100 percent equity in the two companies. This move will help integrate resource and improve profitability of the listed company.
○Hisun Phar. to raise RMB1.172 bln by private placement from its own shareholders
------
Zhejiang Hisun Pharmaceutical Co., Ltd. (600267.SH) plans to raise 1.172 billion yuan by issuing 90.09 million shares at a price of 13 yuan per share from Haichang investment, Huina investment funded by the company's president Hai Hua and some senior managers and employee shareholding plan. The fundraising will be invested in technical improvement project of freeze-dried manufactured goods in west district of Yantou.
○Goldlok Toys Holdings (Guang Dong) Co., Ltd. (002348.SZ) plans to acquire 100 percent equity of Guangdong Fanaizhong Network Technology Co., Ltd. at 90 million yuan. The counterparty promises that net profit of Fanaizhong will not be less than 8 million yuan, 11 million yuan and 13 million yuan during 2016 and 2018 respectively.
[Trading Alarms]
○Xinhuanet to launch IPO on Oct. 18
------
Xinhuanet is going to launch IPO at a price of 27.69 yuan per share with upper subscription limit of 20,000 shares for each account. The PE ratio is 22.99 times. Xinhuanet is engaged in Internet news information service.
TOP
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