[Today's Guide]
○Outline of plan for "Healthy China 2030" launched, industrial size to reach RMB16 trln
○13th five-year development plan for fodder industry released, mapping geographical information technology sees policy support
○XuanHua Construction Machinery to acquire South Africa's cooper producer, Geo-jade Petroleum Corporation to acquire overseas oil and gas assets
○Funds under Huashang Fund Management increase shareholding in Nantian Electronics Information, net profits of Zhengbang Technology and other firms expected to grow
[SSN Focus]
○Outline of plan for "Healthy China 2030" launched, industrial size to reach RMB16 trln
------
The Central Committee of the Communist Party of China and the State Council recently launched the Outline of the Plan for "Healthy China 2030". The core of the plan is to center on people's health, focus on basic levels, make reform and innovation be the driving force, lay emphasis on prevention, attach equal importance to traditional Chinese and western medicines, and make health embedded in all policies. The plan targets at that by 2030, a health industry with complete system and sound structure is built; a batch of large-scale enterprises with strong innovation ability and international competitiveness are fostered; the scale of health service industry totals 16 trillion yuan.
Comment: The content of the outline shows that the focus of national health has been shifted from treatment to prevention. Measures being proposed include promoting national body-building, implementing comprehensive prevention and control strategy for chronic diseases, facilitating integration of industries like health and old-age tourism, and advancing application of big data concerning health and medical care. Multiple listed companies are actively expanding in this field. For instance, Leking Wellness Co., Ltd. (300247.SZ) has expanded to massage products through acquisition; Andon Health Co., Ltd. (002432.SZ) acquired eDevice, a mobile health monitoring equipment provider; Yihua Healthcare Co., Ltd. (000150.SZ) is making attempts in resource integration of medical care and old-age care businesses.
[SSN Selection]
○Deputy secretary general of the National Development and Reform Commission (NDRC) on Oct. 25 indicated on the news press for the progress of de-capacity that tasks for de-capacity of national iron ＆ steel and coal industries might be completed in advance.
○Data shows that average price of liquid caustic soda in China hiked around 2 percent on Oct. 25, recording new high in recent years and totaling the price hike since September to 28 percent.
○Statistics show that QFIIs newly purchased several quality growth stocks with long-term stable performance engaged in the manufacturing industry in Q3. Stocks like Han's Laser Technology Industry Group Co., Ltd. (002008.SZ), Harbin Dongan Auto Engine Co., Ltd. (600178.SH), Hangzhou Robam Appliances Co., Ltd. (002508.SZ) and Henan Senyuan Electric Co., Ltd. (002358.SZ) were purchased by more than two QFIIs.
○The reverse repo operated by China's central bank hit 235 billion yuan on Oct. 25, a new high in over a month. But factors like the decline of funds outstanding for foreign exchange might make the tight balance of liquidity supply continue.
○The securities margin witnessed a net outflow of 5.8 billion yuan last week, while investors were slightly more active in trading.
TOP
[Industry Information]
○13th five-year development plan for fodder industry released
------
The Ministry of Agriculture released the 13th Five-Year Development Plan for National Fodder Industry on Oct. 25. Goals proposed to be achieved during the 13th five-year plan period (2016-2020) include that the output of industrial fodder totals 220 million tons; 40 fodder enterprises are able to annually produce over 1 million tons of fodder and their output accounts for over 60 percent of national output; the integrated development of fodder producers and the breeding industry greatly improves, and the use ratio of bulk fodder reaches 30 percent. The plan proposes to stabilize the raw material supply of protein fodder, build modern forage grass production system, constantly advance the utilization of making straw into fodder, and accelerate the development of new-type fodder additives.
Comment: Institutions point out that leading fodder producers maintained recovery growth in September and the recovery of the quantity of live hogs might beat data estimation. Since the price decline of corn which is the main raw material for fodder can hardly be reversed, the gross profit rate of the fodder industry might see further improvement in the second half. As to listed companies, Shenzhen Jinxinnong Feed Co., Ltd. (002548.SZ) is principally engaged in fodder. Fodder business contributes over 50 percent of the revenues achieved by Liaoning Wellhope Agri-Tech Joint Stock Co., Ltd. (603609.SH).
○Mapping geographical information technology sees policy support, enterprises holding core technology to benefit
------
National Administration of Surveying, Mapping and Geoinformation of China recently released the 13th Five-Year Development Plan for the Development of Mapping Geographical Information Technology, proposing goals like greatly improving the independent innovation ability of mapping geographical information technology, achieving great breakthroughs in core technologies of key areas and etc. The plan also proposes to study core theories and critical technologies concerning the standards for surveying and mapping, navigational positioning, the acquisition and processing of geographical information data and etc.
Comment: The rapid development of new technologies such big data, cloud computing, Internet of Things and intelligent robot provides new engine for the development of mapping geographical information technology. Enterprises with core technology of mapping geographical information are expected to benefit from the development. Zhuhai Orbita Control Engineering Co., Ltd. (300053.SZ) plans to acquire Guangzhou Huiyu Intelligent Survey Technology Co., Ltd. and Shanghai Zhijian Electronic Engineering Co., Ltd. and institution thinks the company is expected to have application in various fields including big data on satellite, remote metering and remote sensing and GIS mapping. Navinfo Co., Ltd. (002405.SZ) is a leader in navigation digital map field in China and has conducted discussion and cooperation with mainstream automakers from home and abroad on auto driving via high-precision map.
TOP
[Announcement Interpretation]
○XuanHua Construction Machinery to acquire South Africa's cooper producer
------
XuanHua Construction Machinery Co., Ltd. (000923.SZ) plans to acquire 100 percent equity of Silian Resources (Hong Kong) Co., Ltd. by issuing shares at a price of 12.39 yuan per share through private placement. Total asset of Silian Resources is valuated at 2.886 billion yuan. Silian Resources achieves exploitation of cooper mine and vermiculite ore and smelting of copper mine of Palabora Copper (Pty) Limited, a South Africa's leading copper producer, through its holding company South Africa PC. Net profit of Silian Resources registered 251 million yuan in 2015 and will reach no less than 200 million yuan, 260 million yuan, 186 million yuan and 325 million yuan during 2016 and 2019 respectively according to the commitment. XuanHua Construction Machinery also intends to raise supporting funds of 2.6 billion yuan from China Great Wall Asset Management Corporation and other firms by issuing shares at a price of 12.70 yuan per share through private placement. The fundraising will be invested in construction of the second phase of cooper mine project of South Africa PC.
○Geo-jade Petroleum Corporation to acquire overseas oil and gas assets at RMB3.36 bln
------
Geo-jade Petroleum Corporation (600759.SH) plans to buy 96.70 percent equity of Shanghai Longzhou Xinke Energy Investment Co., Ltd. at a cost of 3.66 billion yuan by issuing shares at a price of 7.33 yuan per share, which enables the company to wholly control the latter. Longzhou Xinke Energy Investment has acquired 100 percent equity of Bankers Petroleum Ltd. and Ji'ao Investment Co., Ltd., thus gaining oilfield assets of Kazakhstan and Albania and enjoying huge potential. In addition, Geo-jade Petroleum Corporation will raise supporting funds of 3.2 billion yuan by issuing shares for the development of projects under construction.
TOP
○Funds under Huashang Fund Management increase shareholding in Nantian Electronics Information
------
The third quarterly report of Yunnan Nantian Electronics Information Co., Ltd. (000948.SZ) shows that four funds under Huashang Fund Management Co., Ltd. are included in the shareholders list of the company, which totally hold 4.93 percent equity in the company. In the previous interim report of the company, only two of the above-mentioned four funds held 1.08 percent equity in the company.
○Innovation Medical Management Co., Ltd. (002173.SZ) plans to make additional investment with no more than 200 million yuan (equivalent to 30 million US dollars) in Pluristem Therapeutics Inc., raising its shareholding from 17.30 percent to 19.99 percent. Pluristem Therapeutics is a global leading solution provider of stem cell therapy.
○Reorganization proposals of Top Resource Conservation ＆ Environment Corp. (300332.SZ) and Chengzhi Shareholding Co., Ltd. (000990.SZ) are approved by China Securities Regulatory Commission (CSRC) unconditionally, while that of Guangdong Silver Age Sci ＆ Tech Co., Ltd. (300221.SZ) is approved on condition.
[Financial Reports Express]
○Net profits of Zhengbang Technology and other firms expected to grow
------
Annual net profit of Jiangxi Zhengbang Technology Co., Ltd. (002157.SZ) is expected to rise by 200 percent due to growth in fodder and pig business. Annual performance of Chuying Agro-Pastoral Group Co., Ltd. (002477.SZ) is predicted to hike by more than 300 percent mainly owing to improvement in pig market. Annual performance of Tangrenshen Group Co., Ltd. (002567.SZ) is estimated to increase by over 100 percent due to increasing fodder sales and continuous flourishing pig market. Shandong Minhe Animal Husbandry Co., Ltd. (002234.SZ) is predicted to turn loss to profit in annual report due to growing price of baby chicks.
Due to profit from aromatic hydrocarbon releases, annual profit of Rongsheng Petrochemical Co., Ltd. (002493.SZ) is predicted to move up by 300-400 percent. Owing to increasing sales, annual profit of Taihai Manoir Nuclear Equipment Co., Ltd. (002366.SZ) is expected to climb by 26-31 times. Annual performance of Suzhou Good-ark Electronics Co., Ltd. (002079.SZ) is expected to surge by 200-300 times as performance of fundraising project soars. Annual profit of C＆s Paper Co., Ltd. (002511.SZ) is expected to hike by about 200 percent thanks to increasing sales.
[Trading Alarms]
○Digital SilkRoad to launch IPO on Oct. 26
------
Digital SilkRoad is going to launch IPO at a price of 5.54 yuan per share with upper subscription limit of 11,000 shares for each account. The PE ratio is 22.99 times. It is specialized in digital visual integrated services.
TOP
○Outline of plan for "Healthy China 2030" launched, industrial size to reach RMB16 trln
○13th five-year development plan for fodder industry released, mapping geographical information technology sees policy support
○XuanHua Construction Machinery to acquire South Africa's cooper producer, Geo-jade Petroleum Corporation to acquire overseas oil and gas assets
○Funds under Huashang Fund Management increase shareholding in Nantian Electronics Information, net profits of Zhengbang Technology and other firms expected to grow
[SSN Focus]
○Outline of plan for "Healthy China 2030" launched, industrial size to reach RMB16 trln
------
The Central Committee of the Communist Party of China and the State Council recently launched the Outline of the Plan for "Healthy China 2030". The core of the plan is to center on people's health, focus on basic levels, make reform and innovation be the driving force, lay emphasis on prevention, attach equal importance to traditional Chinese and western medicines, and make health embedded in all policies. The plan targets at that by 2030, a health industry with complete system and sound structure is built; a batch of large-scale enterprises with strong innovation ability and international competitiveness are fostered; the scale of health service industry totals 16 trillion yuan.
Comment: The content of the outline shows that the focus of national health has been shifted from treatment to prevention. Measures being proposed include promoting national body-building, implementing comprehensive prevention and control strategy for chronic diseases, facilitating integration of industries like health and old-age tourism, and advancing application of big data concerning health and medical care. Multiple listed companies are actively expanding in this field. For instance, Leking Wellness Co., Ltd. (300247.SZ) has expanded to massage products through acquisition; Andon Health Co., Ltd. (002432.SZ) acquired eDevice, a mobile health monitoring equipment provider; Yihua Healthcare Co., Ltd. (000150.SZ) is making attempts in resource integration of medical care and old-age care businesses.
[SSN Selection]
○Deputy secretary general of the National Development and Reform Commission (NDRC) on Oct. 25 indicated on the news press for the progress of de-capacity that tasks for de-capacity of national iron ＆ steel and coal industries might be completed in advance.
○Data shows that average price of liquid caustic soda in China hiked around 2 percent on Oct. 25, recording new high in recent years and totaling the price hike since September to 28 percent.
○Statistics show that QFIIs newly purchased several quality growth stocks with long-term stable performance engaged in the manufacturing industry in Q3. Stocks like Han's Laser Technology Industry Group Co., Ltd. (002008.SZ), Harbin Dongan Auto Engine Co., Ltd. (600178.SH), Hangzhou Robam Appliances Co., Ltd. (002508.SZ) and Henan Senyuan Electric Co., Ltd. (002358.SZ) were purchased by more than two QFIIs.
○The reverse repo operated by China's central bank hit 235 billion yuan on Oct. 25, a new high in over a month. But factors like the decline of funds outstanding for foreign exchange might make the tight balance of liquidity supply continue.
○The securities margin witnessed a net outflow of 5.8 billion yuan last week, while investors were slightly more active in trading.
TOP
[Industry Information]
○13th five-year development plan for fodder industry released
------
The Ministry of Agriculture released the 13th Five-Year Development Plan for National Fodder Industry on Oct. 25. Goals proposed to be achieved during the 13th five-year plan period (2016-2020) include that the output of industrial fodder totals 220 million tons; 40 fodder enterprises are able to annually produce over 1 million tons of fodder and their output accounts for over 60 percent of national output; the integrated development of fodder producers and the breeding industry greatly improves, and the use ratio of bulk fodder reaches 30 percent. The plan proposes to stabilize the raw material supply of protein fodder, build modern forage grass production system, constantly advance the utilization of making straw into fodder, and accelerate the development of new-type fodder additives.
Comment: Institutions point out that leading fodder producers maintained recovery growth in September and the recovery of the quantity of live hogs might beat data estimation. Since the price decline of corn which is the main raw material for fodder can hardly be reversed, the gross profit rate of the fodder industry might see further improvement in the second half. As to listed companies, Shenzhen Jinxinnong Feed Co., Ltd. (002548.SZ) is principally engaged in fodder. Fodder business contributes over 50 percent of the revenues achieved by Liaoning Wellhope Agri-Tech Joint Stock Co., Ltd. (603609.SH).
○Mapping geographical information technology sees policy support, enterprises holding core technology to benefit
------
National Administration of Surveying, Mapping and Geoinformation of China recently released the 13th Five-Year Development Plan for the Development of Mapping Geographical Information Technology, proposing goals like greatly improving the independent innovation ability of mapping geographical information technology, achieving great breakthroughs in core technologies of key areas and etc. The plan also proposes to study core theories and critical technologies concerning the standards for surveying and mapping, navigational positioning, the acquisition and processing of geographical information data and etc.
Comment: The rapid development of new technologies such big data, cloud computing, Internet of Things and intelligent robot provides new engine for the development of mapping geographical information technology. Enterprises with core technology of mapping geographical information are expected to benefit from the development. Zhuhai Orbita Control Engineering Co., Ltd. (300053.SZ) plans to acquire Guangzhou Huiyu Intelligent Survey Technology Co., Ltd. and Shanghai Zhijian Electronic Engineering Co., Ltd. and institution thinks the company is expected to have application in various fields including big data on satellite, remote metering and remote sensing and GIS mapping. Navinfo Co., Ltd. (002405.SZ) is a leader in navigation digital map field in China and has conducted discussion and cooperation with mainstream automakers from home and abroad on auto driving via high-precision map.
TOP
[Announcement Interpretation]
○XuanHua Construction Machinery to acquire South Africa's cooper producer
------
XuanHua Construction Machinery Co., Ltd. (000923.SZ) plans to acquire 100 percent equity of Silian Resources (Hong Kong) Co., Ltd. by issuing shares at a price of 12.39 yuan per share through private placement. Total asset of Silian Resources is valuated at 2.886 billion yuan. Silian Resources achieves exploitation of cooper mine and vermiculite ore and smelting of copper mine of Palabora Copper (Pty) Limited, a South Africa's leading copper producer, through its holding company South Africa PC. Net profit of Silian Resources registered 251 million yuan in 2015 and will reach no less than 200 million yuan, 260 million yuan, 186 million yuan and 325 million yuan during 2016 and 2019 respectively according to the commitment. XuanHua Construction Machinery also intends to raise supporting funds of 2.6 billion yuan from China Great Wall Asset Management Corporation and other firms by issuing shares at a price of 12.70 yuan per share through private placement. The fundraising will be invested in construction of the second phase of cooper mine project of South Africa PC.
○Geo-jade Petroleum Corporation to acquire overseas oil and gas assets at RMB3.36 bln
------
Geo-jade Petroleum Corporation (600759.SH) plans to buy 96.70 percent equity of Shanghai Longzhou Xinke Energy Investment Co., Ltd. at a cost of 3.66 billion yuan by issuing shares at a price of 7.33 yuan per share, which enables the company to wholly control the latter. Longzhou Xinke Energy Investment has acquired 100 percent equity of Bankers Petroleum Ltd. and Ji'ao Investment Co., Ltd., thus gaining oilfield assets of Kazakhstan and Albania and enjoying huge potential. In addition, Geo-jade Petroleum Corporation will raise supporting funds of 3.2 billion yuan by issuing shares for the development of projects under construction.
TOP
○Funds under Huashang Fund Management increase shareholding in Nantian Electronics Information
------
The third quarterly report of Yunnan Nantian Electronics Information Co., Ltd. (000948.SZ) shows that four funds under Huashang Fund Management Co., Ltd. are included in the shareholders list of the company, which totally hold 4.93 percent equity in the company. In the previous interim report of the company, only two of the above-mentioned four funds held 1.08 percent equity in the company.
○Innovation Medical Management Co., Ltd. (002173.SZ) plans to make additional investment with no more than 200 million yuan (equivalent to 30 million US dollars) in Pluristem Therapeutics Inc., raising its shareholding from 17.30 percent to 19.99 percent. Pluristem Therapeutics is a global leading solution provider of stem cell therapy.
○Reorganization proposals of Top Resource Conservation ＆ Environment Corp. (300332.SZ) and Chengzhi Shareholding Co., Ltd. (000990.SZ) are approved by China Securities Regulatory Commission (CSRC) unconditionally, while that of Guangdong Silver Age Sci ＆ Tech Co., Ltd. (300221.SZ) is approved on condition.
[Financial Reports Express]
○Net profits of Zhengbang Technology and other firms expected to grow
------
Annual net profit of Jiangxi Zhengbang Technology Co., Ltd. (002157.SZ) is expected to rise by 200 percent due to growth in fodder and pig business. Annual performance of Chuying Agro-Pastoral Group Co., Ltd. (002477.SZ) is predicted to hike by more than 300 percent mainly owing to improvement in pig market. Annual performance of Tangrenshen Group Co., Ltd. (002567.SZ) is estimated to increase by over 100 percent due to increasing fodder sales and continuous flourishing pig market. Shandong Minhe Animal Husbandry Co., Ltd. (002234.SZ) is predicted to turn loss to profit in annual report due to growing price of baby chicks.
Due to profit from aromatic hydrocarbon releases, annual profit of Rongsheng Petrochemical Co., Ltd. (002493.SZ) is predicted to move up by 300-400 percent. Owing to increasing sales, annual profit of Taihai Manoir Nuclear Equipment Co., Ltd. (002366.SZ) is expected to climb by 26-31 times. Annual performance of Suzhou Good-ark Electronics Co., Ltd. (002079.SZ) is expected to surge by 200-300 times as performance of fundraising project soars. Annual profit of C＆s Paper Co., Ltd. (002511.SZ) is expected to hike by about 200 percent thanks to increasing sales.
[Trading Alarms]
○Digital SilkRoad to launch IPO on Oct. 26
------
Digital SilkRoad is going to launch IPO at a price of 5.54 yuan per share with upper subscription limit of 11,000 shares for each account. The PE ratio is 22.99 times. It is specialized in digital visual integrated services.
TOP
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