[Today's Guide]
○ Second general survey on national pollution sources to conduct to facilitate environmental protection industry
○ Priority approval procedures to implement next year, leading medical devices enterprises to benefit
○ Ningbo Construction acquires IDC business, Tanac Automation to buy Ocean Xiangrui Machinery
○ Zhongnan Commercial Group and Wanfang Aluminum Manufacturing bought heavily, Holitech Tech. and others forecast growth for 2016
[SSN Focus]
○ Second general survey on national pollution sources to conduct to facilitate environmental protection industry
------
The State Council issued the Notice on Conducting the Second General Survey on National Pollution Sources, proposing to conduct the second general survey on national pollution sources in 2017. It pointed out that it is a key survey on national conditions and the fundamental work in environment protection. Relevant officials from the Ministry of Environmental Protection indicated that it will improve the satellite remote sensing, unmanned aerial vehicles and other survey means as well as the application of the Internet, mobile terminals and other IT technologies. It will establish a systematic environment without "counterfeiting" on the top design so that various entities "cannot counterfeit".
Comment: Based on the communique on the first general survey on national pollution sources in 2007, up to 5,926,000 entities were covered in the survey. The thermal power, iron ＆ steel and other industries with high pollutant discharge conducted strict emission reducing activities later. The survey will initiate the biggest market for the pollution abatement for industrial enterprises and bring new growth momentum to the development of the environmental protection industry, indicated Luo Jianhua, deputy dean of the China Environment Service Industry Association. Institutes are rosy about the implementation of PPP projects in environmental protection, which will guide all social resources and facilitate the investment in environmental protection.
[SSN Selection]
○ Statistics show that the new stocks invested by funds with a huge amount in the third quarter are mainly from the raw material, consumer products and IT industries. Shanghai Trendzone Construction Decoration Group Co., Ltd. (603030.SH), Shenzhen Ellassay Fashion Co., Ltd. (603808.SH), Focus Media Information Technology Co., Ltd. (002027.SZ) and Shandong Shida Shenghua Chemical Group Co., Ltd. (603026.SH) saw relative stagflations recently.
○ COFCO sells assets under it to speed up in the consolidation of the meat and food sectors. China National Building Material Group and China Insurance Investment jointly establish an industrial fund with 80 billion yuan to promote the consolidation of the building material industry.
○ SSN learnt that the approval for the issuing of ABS products for Internet-based consumer finance is increasingly strict. Consumer financial companies approved by the China Banking Regulatory Commission (CBRC) will not be affected.
○ The latest Bohai-Rim Steam-Coal Price Index surged by 16 yuan to 593 yuan as the additional capacity from the release of capacities is below expectation.
○ Zhengzhou Commodity Exchange adjusts the procedure fees for steam coal futures from 6 yuan to 12 yuan for each board.
TOP
[Industry Information]
○ Priority approval procedures to implement next year, leading medical devices enterprises to benefit
------
The China Food and Drug Administration released the Priority Approval Procedures for Medical Devices on Oct. 25, which will be implemented from Jan. 1, 2017. The medical devices enjoying priority approval include those used in the diagnosis or treatment of rare diseases and malignant tumors with obvious clinical advantages, unique and multiple diseases of the aged currently without effective diagnosis or treatment means and those for children with obvious clinical advantages as well as medical devices listed in national key technology programs or national key research and development plans.
Comment: The implementation of the priority approval procedures will speed up the research and development and introduction of relevant medical devices. It will stimulate medical device enterprises with technical advantages. Shanghai Kehua Bio-Engineering Co., Ltd. (002022.SZ) is one of the few companies with the development of devices and reagents and diversified products. The fully automatic analyzer of Beijing Strong Biotechnologies, Inc. (300406.SZ) has obtained the certificate of registration in September, which will facilitate the sale of biochemical in vitro diagnostic reagents. Lepu Medical Technology (Beijing) Co., Ltd. (300003.SZ) announced that it has obtained the certificate of registration for ultrasonic liver cirrhosis testing devices and dual chamber pacemakers.
○ Technology roadmap for energy-saving and new energy vehicles released, light weight and intelligent development to become trends
------
The technology roadmap for energy-saving and new energy vehicles was released in Shanghai on Oct. 26. The roadmap was formulated by over 500 industrial experts organized by the Society of Automotive Engineers of China upon the appointment of the National Manufacturing Strategy Advisory Committee and the Ministry of Industry and Information Technology. It proposes that it will focus on the research and development of new power batteries to significantly improve the energy density and reduce the cost and achieve the scaled application of the new power batteries. The aluminum consumption in a single vehicle will exceed 350kg; the magnesium alloy consumption in a single vehicle will be 45kg and the use of carbon fibre will account for 5 percent of the weight of the vehicle by 2030. It will mainly advance certain automatic driving application focusing on self environment sensing with the information services connected through the Internet as ancillary supports.
Comment: Driven by the strategy of building a vehicle power, the lithium battery, light and intelligent driving industries will see rapid development. As for listed companies, EVE Energy Co., Ltd. (300014.SZ) ranks high in the industry in terms of the capacity of lithium iron phosphates. Nanjing Yunhai Special Metals Co., Ltd. (002182.SZ) is a magnesium alloy leader. Its products have been used in components of new energy vehicles. Zhejiang Vie Science ＆ Technology Co., Ltd. (002590.SZ) works with Haldex to expand its ADAS system.
TOP
[Announcement Interpretation]
○ Ningbo Construction acquires IDC business for RMB1,263 mln.
------
Ningbo Construction Co., Ltd. (601789.SH) proposes to acquire 27.20 percent equities of CEI Cloud Technology Co., Ltd. and 80 percent equities of Ronmei Technology Co., Ltd. for 1,263 million yuan by issuing shares at 4.54 yuan per share through private placement. After the deal, Ronmei Technology will become a wholly-owned subsidiary of the listed company. The listed company will hold 63.47 percent equities of CEI Cloud Technology, which will become its major asset. Meanwhile, the company plans to raise 760 million yuan supporting fund by issuing shares at 5.02 yuan per share to its substantial and second largest shareholders and via employee stock ownership plan. Ningbo Construction will undertake the construction project of data center from CEI Cloud Technology, expanding to IDC service along with its main business.
○ Tanac Automation proposes to buy Ocean Xiangrui Machinery for RMB 390mln.
------
Tanac Automation Co., Ltd. (300461.SZ) proposes to acquire 55 percent equities of Shenzhen Ocean Xiangrui Machinery Co., Ltd. for 390 million yuan in cash. The target asset is mainly engaged in the design, R＆D, production and sales of high-precision numerically-controlled machine tool and relevant software. Its former shareholder promised that its net profit from 2016 to 2018 will be no less than 50 million yuan, 65 million yuan and 85 million yuan respectively.
TOP
○ Zhongnan Commercial Group and Wanfang Aluminum Manufacturing bought by financial companies
------
Greenland Financial Holdings Group, owned by Greenland Group, first appeared on the shareholder list of Wuhan Zhongnan Commercial Group Co., Ltd. (000785.SZ) in the listed company's third quarterly report, and holds a 4.9 percent stake in the company. Hangzhou Binjiang Real Estate Group Co., Ltd. and Hangzhou Binjiang Western Real Estate Group Co., Ltd. first appeared on the shareholder list of Jiaozuo Wanfang Aluminum Manufacturing Co., Ltd. (000612.SZ) in the listed company's third quarterly report, and respectively hold a 2.9 percent and 2.04 percent stake in the company. Inquiry shoes that Hangzhou Binjiang Real Estate Group is a listed company and Hangzhou Binjiang Western Real Estate Group is the former's wholly owned subsidiary. They altogether hold a 4.94 percent stake in the company. Hangzhou Financial Investment Group started to buy shares of Wanfang Aluminum Manufacturing in July, and now holds a 15.96 percent stake in the company.
○ Oceanwide Holdings to take GNW private for USD 2.7bln.
------
Asia Pacific Global Capital Co., Ltd. in which Oceanwide Holdings Co., Ltd. (000046.SZ) holds a 25 percent stake proposes to acquire Genworth Financial Inc. (NYSE.GNW) in a 2.7 billion U.S. dollars cash deal to wholly hold the company. Genworth Financial is the largest long-term care insurance company as well as one of the major house mortgage company in the U.S. As of the end of June, its net asset reported 17 billion U.S. dollars. It posted an operating revenue of 4,021 million U.S. dollars and a net profit after tax of 328 million U.S. dollars for the first half of this year. Currently, the remaining 75 percent stake of Asia Pacific Global Capital is held by the listed company's substantial shareholder China Oceanwide and its related party Oceanwide Capital
○ Shenyang Commercial City Co., Ltd. (600306.SH) proposes to sell some of its retail sale assets for 360 million yuan.
○ Canny Elevator Co., Ltd. (002367.SZ) proposes to launch an employee stock ownership plan with a total amount of no more than 470 million yuan.
[Financial Reports Express]
○ Holitech Tech. and others forecast growth for 2016
------
Holitech Technology Co., Ltd. (002217.SZ) forecasts a growth of more than 200 percent for the full year mainly due to the consolidation of the financial statement of Shenzhen Each Optical Electricity Co., Ltd. and Dongguang Pingbo Electronics Co., Ltd. Yaxia Automobile Corporation (002607.SZ) forecasts a growth of over 400 percent for the full year mainly due to sales growth. Suzhou Dongshan Precision Manufacturing Co., Ltd. (002384.SZ) forecasts a growth of 300-400 percent for the full year mainly due to increasing orders. Hanwang Technology Co., Ltd. (002362.SZ) forecasts a growth of 300 percent for the full year mainly because its management efficiency takes effect. Qianjiang Yongan Pharmaceutical Co., Ltd. (002365.SZ) forecasts a growth of 200 percent for the full year mainly due to higher prices of taurine. Huawei Culture Co., Ltd. (002502.SZ) forecasts a growth of 100-200 percent for the full year mainly due to growth in TV ＆ film business.
[Data Speaks]
○ Equity transfer to heat, many companies to catch attention
------
The market is increasing concerned about the subsequent capital operation of listed companies with equities transfer recently. Based on SSN's statistics, more than 150 listed companies conducted equities transfer or changed the controlling right this year. Winsan (Shanghai) Medical Science And Technology Co., Ltd. (600767.SH) and Sunsea Telecommunications Co., Ltd. (002313.SZ) saw changes in substantial shareholders. The substantial shareholder of Winsan Medical changed from Jiuchuan Group into Sichuan Lanrun Asset Management with a transfer price of 15.7 yuan per share. The substantial shareholder of Sunsea Telecom changed from Xinyu Hairuo Investment Management into Rundatai. The transfer amount reached 1.67 billion yuan with an average price of 27.19 yuan per share.
[Trading Alarms]
○ Betta Pharm. and Quick Soldering to conduct IPO on Oct. 13
------
Betta Pharmaceuticals Co., Ltd. (300558.SZ) will offer shares at 17.57 yuan per share with an upper limit of 12,000 shares for each applicant. The company's PE ratio is 22.99 times. The company is mainly engaged in targeted anticancer drug. Changzhou Quick Soldering Co., Ltd. (732203) will offer shares at 16.5 yuan per share with an upper limit of 9,000 shares for each applicant. The company's PE ratio is 21.04 times. The company is mainly engaged in soldering equipment.
TOP
○ Second general survey on national pollution sources to conduct to facilitate environmental protection industry
○ Priority approval procedures to implement next year, leading medical devices enterprises to benefit
○ Ningbo Construction acquires IDC business, Tanac Automation to buy Ocean Xiangrui Machinery
○ Zhongnan Commercial Group and Wanfang Aluminum Manufacturing bought heavily, Holitech Tech. and others forecast growth for 2016
[SSN Focus]
○ Second general survey on national pollution sources to conduct to facilitate environmental protection industry
------
The State Council issued the Notice on Conducting the Second General Survey on National Pollution Sources, proposing to conduct the second general survey on national pollution sources in 2017. It pointed out that it is a key survey on national conditions and the fundamental work in environment protection. Relevant officials from the Ministry of Environmental Protection indicated that it will improve the satellite remote sensing, unmanned aerial vehicles and other survey means as well as the application of the Internet, mobile terminals and other IT technologies. It will establish a systematic environment without "counterfeiting" on the top design so that various entities "cannot counterfeit".
Comment: Based on the communique on the first general survey on national pollution sources in 2007, up to 5,926,000 entities were covered in the survey. The thermal power, iron ＆ steel and other industries with high pollutant discharge conducted strict emission reducing activities later. The survey will initiate the biggest market for the pollution abatement for industrial enterprises and bring new growth momentum to the development of the environmental protection industry, indicated Luo Jianhua, deputy dean of the China Environment Service Industry Association. Institutes are rosy about the implementation of PPP projects in environmental protection, which will guide all social resources and facilitate the investment in environmental protection.
[SSN Selection]
○ Statistics show that the new stocks invested by funds with a huge amount in the third quarter are mainly from the raw material, consumer products and IT industries. Shanghai Trendzone Construction Decoration Group Co., Ltd. (603030.SH), Shenzhen Ellassay Fashion Co., Ltd. (603808.SH), Focus Media Information Technology Co., Ltd. (002027.SZ) and Shandong Shida Shenghua Chemical Group Co., Ltd. (603026.SH) saw relative stagflations recently.
○ COFCO sells assets under it to speed up in the consolidation of the meat and food sectors. China National Building Material Group and China Insurance Investment jointly establish an industrial fund with 80 billion yuan to promote the consolidation of the building material industry.
○ SSN learnt that the approval for the issuing of ABS products for Internet-based consumer finance is increasingly strict. Consumer financial companies approved by the China Banking Regulatory Commission (CBRC) will not be affected.
○ The latest Bohai-Rim Steam-Coal Price Index surged by 16 yuan to 593 yuan as the additional capacity from the release of capacities is below expectation.
○ Zhengzhou Commodity Exchange adjusts the procedure fees for steam coal futures from 6 yuan to 12 yuan for each board.
TOP
[Industry Information]
○ Priority approval procedures to implement next year, leading medical devices enterprises to benefit
------
The China Food and Drug Administration released the Priority Approval Procedures for Medical Devices on Oct. 25, which will be implemented from Jan. 1, 2017. The medical devices enjoying priority approval include those used in the diagnosis or treatment of rare diseases and malignant tumors with obvious clinical advantages, unique and multiple diseases of the aged currently without effective diagnosis or treatment means and those for children with obvious clinical advantages as well as medical devices listed in national key technology programs or national key research and development plans.
Comment: The implementation of the priority approval procedures will speed up the research and development and introduction of relevant medical devices. It will stimulate medical device enterprises with technical advantages. Shanghai Kehua Bio-Engineering Co., Ltd. (002022.SZ) is one of the few companies with the development of devices and reagents and diversified products. The fully automatic analyzer of Beijing Strong Biotechnologies, Inc. (300406.SZ) has obtained the certificate of registration in September, which will facilitate the sale of biochemical in vitro diagnostic reagents. Lepu Medical Technology (Beijing) Co., Ltd. (300003.SZ) announced that it has obtained the certificate of registration for ultrasonic liver cirrhosis testing devices and dual chamber pacemakers.
○ Technology roadmap for energy-saving and new energy vehicles released, light weight and intelligent development to become trends
------
The technology roadmap for energy-saving and new energy vehicles was released in Shanghai on Oct. 26. The roadmap was formulated by over 500 industrial experts organized by the Society of Automotive Engineers of China upon the appointment of the National Manufacturing Strategy Advisory Committee and the Ministry of Industry and Information Technology. It proposes that it will focus on the research and development of new power batteries to significantly improve the energy density and reduce the cost and achieve the scaled application of the new power batteries. The aluminum consumption in a single vehicle will exceed 350kg; the magnesium alloy consumption in a single vehicle will be 45kg and the use of carbon fibre will account for 5 percent of the weight of the vehicle by 2030. It will mainly advance certain automatic driving application focusing on self environment sensing with the information services connected through the Internet as ancillary supports.
Comment: Driven by the strategy of building a vehicle power, the lithium battery, light and intelligent driving industries will see rapid development. As for listed companies, EVE Energy Co., Ltd. (300014.SZ) ranks high in the industry in terms of the capacity of lithium iron phosphates. Nanjing Yunhai Special Metals Co., Ltd. (002182.SZ) is a magnesium alloy leader. Its products have been used in components of new energy vehicles. Zhejiang Vie Science ＆ Technology Co., Ltd. (002590.SZ) works with Haldex to expand its ADAS system.
TOP
[Announcement Interpretation]
○ Ningbo Construction acquires IDC business for RMB1,263 mln.
------
Ningbo Construction Co., Ltd. (601789.SH) proposes to acquire 27.20 percent equities of CEI Cloud Technology Co., Ltd. and 80 percent equities of Ronmei Technology Co., Ltd. for 1,263 million yuan by issuing shares at 4.54 yuan per share through private placement. After the deal, Ronmei Technology will become a wholly-owned subsidiary of the listed company. The listed company will hold 63.47 percent equities of CEI Cloud Technology, which will become its major asset. Meanwhile, the company plans to raise 760 million yuan supporting fund by issuing shares at 5.02 yuan per share to its substantial and second largest shareholders and via employee stock ownership plan. Ningbo Construction will undertake the construction project of data center from CEI Cloud Technology, expanding to IDC service along with its main business.
○ Tanac Automation proposes to buy Ocean Xiangrui Machinery for RMB 390mln.
------
Tanac Automation Co., Ltd. (300461.SZ) proposes to acquire 55 percent equities of Shenzhen Ocean Xiangrui Machinery Co., Ltd. for 390 million yuan in cash. The target asset is mainly engaged in the design, R＆D, production and sales of high-precision numerically-controlled machine tool and relevant software. Its former shareholder promised that its net profit from 2016 to 2018 will be no less than 50 million yuan, 65 million yuan and 85 million yuan respectively.
TOP
○ Zhongnan Commercial Group and Wanfang Aluminum Manufacturing bought by financial companies
------
Greenland Financial Holdings Group, owned by Greenland Group, first appeared on the shareholder list of Wuhan Zhongnan Commercial Group Co., Ltd. (000785.SZ) in the listed company's third quarterly report, and holds a 4.9 percent stake in the company. Hangzhou Binjiang Real Estate Group Co., Ltd. and Hangzhou Binjiang Western Real Estate Group Co., Ltd. first appeared on the shareholder list of Jiaozuo Wanfang Aluminum Manufacturing Co., Ltd. (000612.SZ) in the listed company's third quarterly report, and respectively hold a 2.9 percent and 2.04 percent stake in the company. Inquiry shoes that Hangzhou Binjiang Real Estate Group is a listed company and Hangzhou Binjiang Western Real Estate Group is the former's wholly owned subsidiary. They altogether hold a 4.94 percent stake in the company. Hangzhou Financial Investment Group started to buy shares of Wanfang Aluminum Manufacturing in July, and now holds a 15.96 percent stake in the company.
○ Oceanwide Holdings to take GNW private for USD 2.7bln.
------
Asia Pacific Global Capital Co., Ltd. in which Oceanwide Holdings Co., Ltd. (000046.SZ) holds a 25 percent stake proposes to acquire Genworth Financial Inc. (NYSE.GNW) in a 2.7 billion U.S. dollars cash deal to wholly hold the company. Genworth Financial is the largest long-term care insurance company as well as one of the major house mortgage company in the U.S. As of the end of June, its net asset reported 17 billion U.S. dollars. It posted an operating revenue of 4,021 million U.S. dollars and a net profit after tax of 328 million U.S. dollars for the first half of this year. Currently, the remaining 75 percent stake of Asia Pacific Global Capital is held by the listed company's substantial shareholder China Oceanwide and its related party Oceanwide Capital
○ Shenyang Commercial City Co., Ltd. (600306.SH) proposes to sell some of its retail sale assets for 360 million yuan.
○ Canny Elevator Co., Ltd. (002367.SZ) proposes to launch an employee stock ownership plan with a total amount of no more than 470 million yuan.
[Financial Reports Express]
○ Holitech Tech. and others forecast growth for 2016
------
Holitech Technology Co., Ltd. (002217.SZ) forecasts a growth of more than 200 percent for the full year mainly due to the consolidation of the financial statement of Shenzhen Each Optical Electricity Co., Ltd. and Dongguang Pingbo Electronics Co., Ltd. Yaxia Automobile Corporation (002607.SZ) forecasts a growth of over 400 percent for the full year mainly due to sales growth. Suzhou Dongshan Precision Manufacturing Co., Ltd. (002384.SZ) forecasts a growth of 300-400 percent for the full year mainly due to increasing orders. Hanwang Technology Co., Ltd. (002362.SZ) forecasts a growth of 300 percent for the full year mainly because its management efficiency takes effect. Qianjiang Yongan Pharmaceutical Co., Ltd. (002365.SZ) forecasts a growth of 200 percent for the full year mainly due to higher prices of taurine. Huawei Culture Co., Ltd. (002502.SZ) forecasts a growth of 100-200 percent for the full year mainly due to growth in TV ＆ film business.
[Data Speaks]
○ Equity transfer to heat, many companies to catch attention
------
The market is increasing concerned about the subsequent capital operation of listed companies with equities transfer recently. Based on SSN's statistics, more than 150 listed companies conducted equities transfer or changed the controlling right this year. Winsan (Shanghai) Medical Science And Technology Co., Ltd. (600767.SH) and Sunsea Telecommunications Co., Ltd. (002313.SZ) saw changes in substantial shareholders. The substantial shareholder of Winsan Medical changed from Jiuchuan Group into Sichuan Lanrun Asset Management with a transfer price of 15.7 yuan per share. The substantial shareholder of Sunsea Telecom changed from Xinyu Hairuo Investment Management into Rundatai. The transfer amount reached 1.67 billion yuan with an average price of 27.19 yuan per share.
[Trading Alarms]
○ Betta Pharm. and Quick Soldering to conduct IPO on Oct. 13
------
Betta Pharmaceuticals Co., Ltd. (300558.SZ) will offer shares at 17.57 yuan per share with an upper limit of 12,000 shares for each applicant. The company's PE ratio is 22.99 times. The company is mainly engaged in targeted anticancer drug. Changzhou Quick Soldering Co., Ltd. (732203) will offer shares at 16.5 yuan per share with an upper limit of 9,000 shares for each applicant. The company's PE ratio is 21.04 times. The company is mainly engaged in soldering equipment.
TOP
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