[Today's Guide]
○ Executive meeting of State Council to fully promote openness of municipal affairs, e-municipal affairs to expect prosperity
○ Nuclear Safety Law submitted to NPC for deliberation, nuclear power construction steps in rapid development
○ Oil quality upgrading constantly to be promoted, Jindun Fans buys 2 firms at RMB2.21 bln
○ Xia Jiantong invests RMB1 bln in Yuan Cheng Cable, Actual controller of Kinlita Chemical to transfer 10 pct equity
[SSN Focus]
○ Executive meeting of State Council to fully promote openness of municipal affairs, e-municipal affairs to expect prosperity
------
The executive meeting of the State Council on Oct. 31 determined to fully promote detailed implementation rules to keep the public informed of the municipal affairs, which will open decision-making, execution, management, service and results to the public in each municipal issue, and select 100 counties to carry out standardized pilots to this respect. It also requires authorities to reinforce the platform construction of governmental websites, focus on whole-media measures, and enlarge the related information coverage and influence.
Comment: The central government and many ministries have successively released documents to this respect since this year. "Internet Municipal Affairs" and cloud computing technologies being used to integrate and improve e-municipal affairs information system attracts much attention. By 2018, China's investment scale in this field will surpass 340 billion yuan, institutions expected. Among A-share companies, Fujian Rongji Software Co., Ltd. (002474.SZ) has a subsidiary mainly engaged in operation "Digital Fujian"; Inspur Software Co., Ltd. (600756.SH) have stable client resources for municipal affairs, education, cloud police affairs and etc.; Beijing Thunisoft Co., Ltd. (300271.SZ) is a leading magnate in laws ＆ inspection information orientation.
[SSN Selection]
○ The manufacturing PMI will increase from 50.4 percent in September to around 50.5 percent in October, which will be released soon, institutions expected. The CPI, PPI, industrial added value and etc. will also continue to rebound.
○ National Reform and Development Commission recently released National Water-saving Action Plan to comprehensively build up a water-saving society based on water savings in agriculture, industry, urban and rural areas.
○ The Ministry of Industry and Information Technology recently issued a Five-Year Plan for industrial development of civil explosive products, which proposes to create magnates with international competitiveness in next three to five years.
○ China's ferromolybdenum price on Oct. 31 increased 500 yuan per ton. Supply side reform and the increasing demands of downstream steel industry are likely to improve the profits in this field.
○ Related official of National Reform and Development Commission on Oct. 31 indicated that it is very possible to suffer coal oversupply in a certain phase, with price falling back, after accidental factors' influence fades away.
TOP
[Industry Information]
○ Nuclear Safety Law submitted to NPC for deliberation, nuclear power construction steps in rapid development
------
The Nuclear Safety Law (draft) has been submitted to the National People's Congress (NPC) for deliberation on Oct. 31, and it has proposed rules on many aspects, such as supervision ＆ investigation on nuclear power development, information openness ＆ public participation, nuclear accident emergency preparation ＆ response, nuclear facilities ＆ materials security, and etc. This law and Radioactive Contamination Prevention Law will jointly form a basic law system for China's nuclear power development. Based on related law procedure, this law will be released in the first half year of 2017 at the soonest.
Comment: China has 35 nuclear power units in operation, and 21 ones under construction, totaling at 56 units now. Based on medium and long term development planning for nuclear power, by 2020, China will have nearly 100 nuclear power units. Increment market will bring in favorable performances of related companies, and nuclear waste market will provide medium ＆ long term investment opportunities, institutions expected. Taihai Manoir Nuclear Equipment Co., Ltd. (002366.SZ) is core nuclear power equipment supplier. Jiangsu Shentong Valve Co., Ltd. (002438.SZ) has been mainly engaged in butterfly and ball valves of nuclear power for many years. Anhui Yingliu Electromechanical Co., Ltd. (603308.SH) constructs the first production line for neutron-absorbing material plate in China.
TOP
○ Six Beijing emission standards to be taken into effect, oil quality upgrading constantly to be promoted
------
Beijing Municipal Environmental Protection Bureau on Oct. 31 released six Beijing emission standards for car-used fuel oil, which will be taken into effect from January 2017. This standard for gasoline aims to reduce the emission of volatile organic compounds, and restrict PM2.5 and ozonic; and that for diesel aims to make stricter rules on PAH and density range, and add biodiesel and clearing agents to effectively reduce particulate matters and NOx. Additionally, five national emission standards will be executed from 2017 nationwide, and some cities, including Beijing, Shanghai, Ningbo and etc. have already been the first movers to carry out such standards.
Comment: Improvement in oil product quality and standard will be beneficial to improve the environment, treat haze, and wipe out lagged capacity; enterprises, which produce oil dope, hydrogenation catalyst and others, overall contractors related to oil quality upgrading engineering as well as equipment manufacturers are likely to benefit, institutions believed. Among listed companies, Dymatic Chemicals, Inc. (002054.SZ) has its industrial isooctane project with annual output of 240,000 tons formally put into production in 2015; Shandong Sunway Petrochemical Engineering Co., Ltd. (002469.SZ) is a leading contractor recycling sulfur for petrochemical industry.
[Announcement Interpretation]
○Jindun Fans buys 2 firms at RMB2.21 bln to step into military equipment field
------
Zhejiang Jindun Fans Co., Ltd. (300411.SZ) plans to buy 100 percent equity of Zhejiang ULIRVISION Technology Co., Ltd. and Jiangyin Zhongqiang Technology Co., Ltd. at a cost of 2.21 billion yuan by issuing shares at a price of 24.45 yuan per share. Meanwhile, it intends to raise 1.017 billion yuan by issuing 35,621,100 shares at a price of 28.54 yuan per share.
ULIRVISION Technology is dedicated to the research ＆ development and industrialization of infrared imaging, ultraviolet imagery and gas imaging. Zhongqiang Technology is specialized in manufacturing and sales of weaponry equipment project. The counterparty promises that net profit of ULIRVISION Technology will not be less than 50 million yuan, 75 million yuan, 93.75 million yuan and 117 million yuan during 2016 and 2019 respectively, and that of Zhongqiang Technology will not be less than 35 million yuan, 70 million yuan, 94.5 million yuan, 128 million yuan and 172 million yuan during 2016 and 2020 respectively.
TOP
○Xia Jiantong invests RMB1 bln in Yuan Cheng Cable
------
Yuan Cheng Cable Co., Ltd. (002692.SZ) discloses that the company's director Yu Guoping and actual controller Yang Xiaoming will transfer their 5.32 percent equity and 7.28 percent equity of the company to Hangzhou Ruikang Sports Culture Co., Ltd. respectively at a price of 11.89 yuan per share. The total cost will reach 1.076 billion yuan. After the transfer is done, Ruikang Sports Culture will hold 159 million stocks in the company, accounting for 22.18 percent of the company's total share capital (it has owned 9.58 percent equity before). Hence, it becomes the biggest shareholder of the listed company and Xia Jiantong turns to be the listed company's actual controller.
Information shows that Ruikang Sports Culture is engaged in sports events planning, culture and art exchange activity planning, lease and installation of sports equipment and investment management consultancy. Actual controller Xia Jiantong has already owned Lotus Health Group Company (600186.SH), which is listed in A-share market, and several investment companies. Xia is also chairman of Aston Villa Football Club.
○Actual controller of Kinlita Chemical to transfer 10 pct equity
------
Wu Guozheng, actual controller of Shanghai Kinlita Chemical Co., Ltd. (300225.SZ), plans to transfer his 10 percent equity of the listed company at a price of 8.31 yuan per share to Shaoxing Keqiao Lingying Industrial Co., Ltd. The transfer price is 390 million yuan. After that, Wu will be still controlling shareholder and actual controller of the listed company with holding 19.54 percent equity. Registered capital of Keqiao Lingying Industrial is 200 million yuan, major contributor is Zhejiang Lingyan Asset Management Co., Ltd., and corporate representative is director of Lingyan Asset Management, who is also vice general manager of Zhejiang Yongli Industrial Group and vice president and director of Sintay Insurance.
○New Century Cruise to acquire game giant at RMB30.5 bln
------
Chongqing New Century Cruise Co., Ltd. (002558.SZ) plans to purchase all ordinary stocks of Alpha, a giant in game industry, at a cost of 30.504 billion yuan, 83.61 percent (or 25.504 billion yuan) of which will be paid by issuing stocks at a price of 39.34 yuan per share and the rest of 10.39 percent (or 5 billion yuan) of which will be paid in cash. At the same time, the company will raise 5 billion yuan from the company's controlling shareholder Shanghai Giant Investment Management Company by issuing 115 million stocks at a price of 43.66 yuan per share. The fundraising will be used to pay the foresaid consideration. Evaluation report predicts that net profit of Alpha will reach 1.528 billion yuan, 1.994 billion yuan and 2.415 billion yuan during 2016 and 2018 respectively.
○Actual controller of Songfa Ceramics increases shareholding
------
Lin Daofan, actual controller of Guangdong Songfa Ceramics Co., Ltd. (603268.SH) buys 434,300 shares of the company on Oct. 28 and 31, accounting for 0.49 percent of total share capital of the company. According to shareholding increase plan, Lin plans to increase shareholding by 1-2 percent in six months since June 28.
In additon, Yihua Enterprise (Group) Co., Ltd., controlling shareholder of Yihua Healthcare Co., Ltd. (000150.SZ) and Yihua Lifestyle Technology Co., Ltd. (600978.SH) buy 623,000 shares and 1,935,000 shares of the company on Oct. 31, and they will continue to raise the shareholding.
○Tongding Interconnection Information Co., Ltd. (002491.SZ) improves the reorganization plan of acquiring 100 percent equity of Byzoro Networks Ltd. at 1.08 billion yuan.
[Trading Alarms]
○Guotai Industrial Explosive to launch IPO on Nov. 1
------
Jiangxi Guotai Industrial Explosive Group Co., Ltd. is going to launch IPO at a price of 6.45 yuan per share with an upper limit of 20,000 stocks for each account. The PE ratio is 14.81 times. The company is engaged in explosive equipment for civil use.
TOP
○ Executive meeting of State Council to fully promote openness of municipal affairs, e-municipal affairs to expect prosperity
○ Nuclear Safety Law submitted to NPC for deliberation, nuclear power construction steps in rapid development
○ Oil quality upgrading constantly to be promoted, Jindun Fans buys 2 firms at RMB2.21 bln
○ Xia Jiantong invests RMB1 bln in Yuan Cheng Cable, Actual controller of Kinlita Chemical to transfer 10 pct equity
[SSN Focus]
○ Executive meeting of State Council to fully promote openness of municipal affairs, e-municipal affairs to expect prosperity
------
The executive meeting of the State Council on Oct. 31 determined to fully promote detailed implementation rules to keep the public informed of the municipal affairs, which will open decision-making, execution, management, service and results to the public in each municipal issue, and select 100 counties to carry out standardized pilots to this respect. It also requires authorities to reinforce the platform construction of governmental websites, focus on whole-media measures, and enlarge the related information coverage and influence.
Comment: The central government and many ministries have successively released documents to this respect since this year. "Internet Municipal Affairs" and cloud computing technologies being used to integrate and improve e-municipal affairs information system attracts much attention. By 2018, China's investment scale in this field will surpass 340 billion yuan, institutions expected. Among A-share companies, Fujian Rongji Software Co., Ltd. (002474.SZ) has a subsidiary mainly engaged in operation "Digital Fujian"; Inspur Software Co., Ltd. (600756.SH) have stable client resources for municipal affairs, education, cloud police affairs and etc.; Beijing Thunisoft Co., Ltd. (300271.SZ) is a leading magnate in laws ＆ inspection information orientation.
[SSN Selection]
○ The manufacturing PMI will increase from 50.4 percent in September to around 50.5 percent in October, which will be released soon, institutions expected. The CPI, PPI, industrial added value and etc. will also continue to rebound.
○ National Reform and Development Commission recently released National Water-saving Action Plan to comprehensively build up a water-saving society based on water savings in agriculture, industry, urban and rural areas.
○ The Ministry of Industry and Information Technology recently issued a Five-Year Plan for industrial development of civil explosive products, which proposes to create magnates with international competitiveness in next three to five years.
○ China's ferromolybdenum price on Oct. 31 increased 500 yuan per ton. Supply side reform and the increasing demands of downstream steel industry are likely to improve the profits in this field.
○ Related official of National Reform and Development Commission on Oct. 31 indicated that it is very possible to suffer coal oversupply in a certain phase, with price falling back, after accidental factors' influence fades away.
TOP
[Industry Information]
○ Nuclear Safety Law submitted to NPC for deliberation, nuclear power construction steps in rapid development
------
The Nuclear Safety Law (draft) has been submitted to the National People's Congress (NPC) for deliberation on Oct. 31, and it has proposed rules on many aspects, such as supervision ＆ investigation on nuclear power development, information openness ＆ public participation, nuclear accident emergency preparation ＆ response, nuclear facilities ＆ materials security, and etc. This law and Radioactive Contamination Prevention Law will jointly form a basic law system for China's nuclear power development. Based on related law procedure, this law will be released in the first half year of 2017 at the soonest.
Comment: China has 35 nuclear power units in operation, and 21 ones under construction, totaling at 56 units now. Based on medium and long term development planning for nuclear power, by 2020, China will have nearly 100 nuclear power units. Increment market will bring in favorable performances of related companies, and nuclear waste market will provide medium ＆ long term investment opportunities, institutions expected. Taihai Manoir Nuclear Equipment Co., Ltd. (002366.SZ) is core nuclear power equipment supplier. Jiangsu Shentong Valve Co., Ltd. (002438.SZ) has been mainly engaged in butterfly and ball valves of nuclear power for many years. Anhui Yingliu Electromechanical Co., Ltd. (603308.SH) constructs the first production line for neutron-absorbing material plate in China.
TOP
○ Six Beijing emission standards to be taken into effect, oil quality upgrading constantly to be promoted
------
Beijing Municipal Environmental Protection Bureau on Oct. 31 released six Beijing emission standards for car-used fuel oil, which will be taken into effect from January 2017. This standard for gasoline aims to reduce the emission of volatile organic compounds, and restrict PM2.5 and ozonic; and that for diesel aims to make stricter rules on PAH and density range, and add biodiesel and clearing agents to effectively reduce particulate matters and NOx. Additionally, five national emission standards will be executed from 2017 nationwide, and some cities, including Beijing, Shanghai, Ningbo and etc. have already been the first movers to carry out such standards.
Comment: Improvement in oil product quality and standard will be beneficial to improve the environment, treat haze, and wipe out lagged capacity; enterprises, which produce oil dope, hydrogenation catalyst and others, overall contractors related to oil quality upgrading engineering as well as equipment manufacturers are likely to benefit, institutions believed. Among listed companies, Dymatic Chemicals, Inc. (002054.SZ) has its industrial isooctane project with annual output of 240,000 tons formally put into production in 2015; Shandong Sunway Petrochemical Engineering Co., Ltd. (002469.SZ) is a leading contractor recycling sulfur for petrochemical industry.
[Announcement Interpretation]
○Jindun Fans buys 2 firms at RMB2.21 bln to step into military equipment field
------
Zhejiang Jindun Fans Co., Ltd. (300411.SZ) plans to buy 100 percent equity of Zhejiang ULIRVISION Technology Co., Ltd. and Jiangyin Zhongqiang Technology Co., Ltd. at a cost of 2.21 billion yuan by issuing shares at a price of 24.45 yuan per share. Meanwhile, it intends to raise 1.017 billion yuan by issuing 35,621,100 shares at a price of 28.54 yuan per share.
ULIRVISION Technology is dedicated to the research ＆ development and industrialization of infrared imaging, ultraviolet imagery and gas imaging. Zhongqiang Technology is specialized in manufacturing and sales of weaponry equipment project. The counterparty promises that net profit of ULIRVISION Technology will not be less than 50 million yuan, 75 million yuan, 93.75 million yuan and 117 million yuan during 2016 and 2019 respectively, and that of Zhongqiang Technology will not be less than 35 million yuan, 70 million yuan, 94.5 million yuan, 128 million yuan and 172 million yuan during 2016 and 2020 respectively.
TOP
○Xia Jiantong invests RMB1 bln in Yuan Cheng Cable
------
Yuan Cheng Cable Co., Ltd. (002692.SZ) discloses that the company's director Yu Guoping and actual controller Yang Xiaoming will transfer their 5.32 percent equity and 7.28 percent equity of the company to Hangzhou Ruikang Sports Culture Co., Ltd. respectively at a price of 11.89 yuan per share. The total cost will reach 1.076 billion yuan. After the transfer is done, Ruikang Sports Culture will hold 159 million stocks in the company, accounting for 22.18 percent of the company's total share capital (it has owned 9.58 percent equity before). Hence, it becomes the biggest shareholder of the listed company and Xia Jiantong turns to be the listed company's actual controller.
Information shows that Ruikang Sports Culture is engaged in sports events planning, culture and art exchange activity planning, lease and installation of sports equipment and investment management consultancy. Actual controller Xia Jiantong has already owned Lotus Health Group Company (600186.SH), which is listed in A-share market, and several investment companies. Xia is also chairman of Aston Villa Football Club.
○Actual controller of Kinlita Chemical to transfer 10 pct equity
------
Wu Guozheng, actual controller of Shanghai Kinlita Chemical Co., Ltd. (300225.SZ), plans to transfer his 10 percent equity of the listed company at a price of 8.31 yuan per share to Shaoxing Keqiao Lingying Industrial Co., Ltd. The transfer price is 390 million yuan. After that, Wu will be still controlling shareholder and actual controller of the listed company with holding 19.54 percent equity. Registered capital of Keqiao Lingying Industrial is 200 million yuan, major contributor is Zhejiang Lingyan Asset Management Co., Ltd., and corporate representative is director of Lingyan Asset Management, who is also vice general manager of Zhejiang Yongli Industrial Group and vice president and director of Sintay Insurance.
○New Century Cruise to acquire game giant at RMB30.5 bln
------
Chongqing New Century Cruise Co., Ltd. (002558.SZ) plans to purchase all ordinary stocks of Alpha, a giant in game industry, at a cost of 30.504 billion yuan, 83.61 percent (or 25.504 billion yuan) of which will be paid by issuing stocks at a price of 39.34 yuan per share and the rest of 10.39 percent (or 5 billion yuan) of which will be paid in cash. At the same time, the company will raise 5 billion yuan from the company's controlling shareholder Shanghai Giant Investment Management Company by issuing 115 million stocks at a price of 43.66 yuan per share. The fundraising will be used to pay the foresaid consideration. Evaluation report predicts that net profit of Alpha will reach 1.528 billion yuan, 1.994 billion yuan and 2.415 billion yuan during 2016 and 2018 respectively.
○Actual controller of Songfa Ceramics increases shareholding
------
Lin Daofan, actual controller of Guangdong Songfa Ceramics Co., Ltd. (603268.SH) buys 434,300 shares of the company on Oct. 28 and 31, accounting for 0.49 percent of total share capital of the company. According to shareholding increase plan, Lin plans to increase shareholding by 1-2 percent in six months since June 28.
In additon, Yihua Enterprise (Group) Co., Ltd., controlling shareholder of Yihua Healthcare Co., Ltd. (000150.SZ) and Yihua Lifestyle Technology Co., Ltd. (600978.SH) buy 623,000 shares and 1,935,000 shares of the company on Oct. 31, and they will continue to raise the shareholding.
○Tongding Interconnection Information Co., Ltd. (002491.SZ) improves the reorganization plan of acquiring 100 percent equity of Byzoro Networks Ltd. at 1.08 billion yuan.
[Trading Alarms]
○Guotai Industrial Explosive to launch IPO on Nov. 1
------
Jiangxi Guotai Industrial Explosive Group Co., Ltd. is going to launch IPO at a price of 6.45 yuan per share with an upper limit of 20,000 stocks for each account. The PE ratio is 14.81 times. The company is engaged in explosive equipment for civil use.
TOP
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