[Today's Guide]
○Rare earth price slightly rebounds, state's purchase and storage still expected within 2016
○Timetable for development of intelligent connected vehicles to release, work team established
○13th five-year plan for integrated development of informatization and industrialization to release, numerical control rate of key process to reach 50 pct
○Kingking Applied Chemistry fully controls UCO.com, Sales price of principal products of Titanium Dioxide Chemical to increase
[SSN Focus]
○Rare earth price slightly rebounds, state's purchase and storage still expected within 2016
------
The rare earth price recovers slightly on Nov. 3. The price of praseodymium-neodymium oxide surged to 246,000 to 248,000 yuan/tonne from 243,000 yuan/tonne in mid-October. The price of metal praseodymium-neodymium also hiked to 317,000 to 320,000 yuan/tonne from 313,000 yuan/tonne. The newly-released 13th five-year plan on the rare earth industry proposes that the total production will be within 140,000 tonnes by 2020. The six rare earth groups will complete the consolidation in the mining, smelting and comprehensive use of rare earths.
Comment: Considering that current price of rare earth is still low in recent years, the industry is eager for the state's purchase and storage. Institutions believe that on account of the precedent that the state's purchase and storage of tungsten finally succeeded after two failures, an agreement on the state's purchase and storage of rare earth might be reached between the rare earth groups and National Reserve Bureau after repeated negotiation. Relevant companies like Rising Nonferrous Metals Share Co., Ltd. (600259.SH), Shenghe Resources Holding Co., Ltd. (600392.SH) and Xiamen Tungsten Co., Ltd. (600549.SH) attract attention of institutions.
[SSN Selection]
○SSN learnt that Shenzhen Stock Exchange has granted 24 members like Huatai Securities, Shenwan Hongyuan Securities and China Merchants Securities with the access to the southbound trading of Shenzhen-Hong Kong Stock Connect.
○China United Network Communications Limited (600050.SH) indicated on Nov. 3 that partners with strong complementation in business will be invited to get involved in its mixed ownership reform; Li Yanhong, head of internet giant Baidu Inc., and Pony Ma Huateng, founder of Tencent Holdings, announced on the same day that they have entered into strategic partnership with China United Network Communications.
○Equity change of Hua Xia Bank Co., Ltd. (600015.SH) was nodded by China Banking Regulatory Commission (CBRC). The People's Insurance Company of China (PICC) will obtain 2,136 million shares of Hua Xia Bank from Deutsche Bank.
○Guangdong Yantang Dairy Co., Ltd. (002732.SZ) announced trading suspension for self-examination due to abnormal trading fluctuation; the trading volume ranking list shows that several previously outstanding performers like Sichuan Shuangma Cement Co., Ltd. (000935.SZ) suffered net selling by floating money.
○Zhejiang Dongliang New Material Co., Ltd. (002082.SZ) announced that as of Oct. 31, Evergrande Life Assurance Co., Ltd. has reduced shareholding of the company by 4.3 percent, making itself no longer among top 10 shareholders.
TOP
[Industry Information]
○Timetable for development of intelligent connected vehicles to release, work team established
------
SSN learnt that timetable for the development of intelligent connected vehicles might be rolled out in Q1 of 2017. Relevant detailed rules about intelligent connected vehicles will be worked out before year end. According to experts' introduction, the Society of Automotive Engineers of China has established V2X industry promotion work team to work on the timetable. China Datang Corporation, Huawei and etc. will take the lead in establishing V2X physical criterions; China Electric Power Research Institute will be in charge of the criterions for transport layer; General Motors Corporation (China), Changan Auto Corporation and Tsinghua University will be responsible for vehicle applications.
Comment: McKinsey forecasts in its research report that by 2025, intelligent vehicles will yield an output value of 200 billion US dollars to 1.9 trillion US dollars. Industrial Securities Co., Ltd. (601377.SH) expects that mature products based on LTE-V vehicle networking standards will be seen in 2017, and commercial use might be officially realized in 2018. As to listed companies, Zhejiang Vie Science ＆ Technology Co., Ltd. (002590.SZ) has made arrangement in advanced driver assistance system (ADAS); Datang Telecom Technology Co., Ltd. (600198.SH) is a provider for LTE-V chips and solutions.
TOP
○13th five-year plan for integrated development of informatization and industrialization to release, numerical control rate of key process to reach 50 pct
------
The Ministry of Industry and Information Technology (MIIT) recently rolled out the Integrated Development Plan for Informatization and Industrialization (2016-2020). It is proposed that by 2020, national integrated development index for informatization and industrialization reaches 85, 12 higher than the figure in 2015. The fining, flexibility and intellectualization level of production mode will be greatly enhanced, and the numerical control rate of key process reaches 50 percent; the scale of new-type intelligent hardware products and service market exceeds 1 trillion yuan; the R＆D and industrialization of automatic control and sensing technology achieve breakthroughs. Industrial cloud and intelligent service platform gradually become infrastructure of intelligent manufacturing.
Comment: At present, as China's manufacturing is faced with challenges of strengthened restriction of resources and environment, increasing factor cost and slowdown in investment and export, in-depth integration of informatization and industrialization will help enterprises optimize resource allocation, enhance efficiency of production and operation, improve product category structure and improve adaptation and flexibility of structure of supply. But the rapid development of information technology bolsters the development of integration of informatization and industrialization. Shenzhen Maxonic Automation Control Co., Ltd. (300112.SZ) plans to invest in projects of medium and high-end numerical control and sensor through private placement. Shanghai MJ Intelligent System Co., Ltd., a subsidiary of Wuhan Huazhong Numerical Control Co., Ltd. (600172.SH) is engaged in intelligent factory and industrial automation.
○Big data becomes new development direction of medical industry
------
The first China Hospital Capability Construction and Development Conference and Healthcare Data Application and Development Conference is held in Beijing during Nov. 2-3. Gen Qingshan, secretary of the party committee of Guangdong General Hospital, shared "Future Medical Science Based on Big Data" during the conference. In his opinion, with rapid development and application of big data, IT field and medical service institutions should be more open. Only by fully integrating cutting-edge technology and medical service can efficiency of medical service be truly improved.
Comment: At present, Wonders Information Co., Ltd. (300168.SZ), Winning Health Technology Group Co., Ltd. (300253.SZ) and Searainbow Holding Corp. (000503.SZ) have embarked on medical informatization industry. The common point is that they all improve medical service efficiency via Internet technology and explore commercialized value of medical big data from the aspects of regional health informatization management, hospital informatization management and medical insurance management. On the other hand, Andon Health Co., Ltd. (002432.SZ), Lepu Medical Technology (Beijing) Co., Ltd. (300003.SZ), Jiangsu Yuyue Medical Equipment ＆ Supply Co., Ltd. (002223.SZ) and Meinian Onehealth Healthcare Holdings Co., Ltd. (002044.SZ) aims to improve quality of medical service based on hardware and service terminal and seeking for technological integration.
TOP
[Announcement Interpretation]
○Kingking Applied Chemistry acquires UCO.com at RMB680 mln
------
Qingdao Kingking Applied Chemistry Co., Ltd. (002094.SZ) plans to buy 63 percent equity of UCO.com at 680 million yuan by issuing about 15.3 million shares at a price of 23 yuan per share through private placement and by paying 328 million yuan in cash. Meanwhile, it will raise supporting funds of 344 million yuan by issuing shares at a price of 23.25 yuan per share at least through private placement. After the acquisition is finished, the company will hold 100 percent equity in UCO.com.
UCO.com is able to provide one-stop e-commerce service for many international cosmetics brands. The counterparty promises that net profit of UCO.com will not be less than 67 million yuan, 100 million yuan and 123 million yuan during 2016 and 2018 respectively.
○Sales price of principal products of Titanium Dioxide Chemical to increase
------
Nanjing Titanium Dioxide Chemical Co., Ltd., a wholly-owned subsidiary of Jilin Gpro Titanium Industry Co., Ltd., decided to raise prices of rutile titanium dioxide and anatase titanium dioxide from Nov. 3 on. Sales price in domestic market will be raised by 500 yuan per ton and export price will be raised by 80 US dollars per ton.
○Restructuring proposals of B-soft Co., Ltd. (300451.SZ) and Guangdong Nan Yang Cable Group Holding Co., Ltd. (002212.SZ) are approved by China Securities Regulatory Commission (CSRC) unconditionally. Shenzhen Prince New Materials Co., Ltd. (002735.SZ) and Yunnan Energy Investment Co., Ltd. (002053.SZ) terminated restructuring and resumed trading.
○Jiangxi Coal Industry Group Co., Ltd., a wholly-owned subsidiary of Anyuan Coal Industry Group Co., Ltd. (600397.SH), gains governmental subsidy worth 487 million yuan.
○Controlling shareholders of Jiangsu Linyang Energy Co., Ltd. (601222.SH) increased shareholding by 2.91 million shares of the company during Nov. 2-3. Controlling shareholders of HuBei Fuxing Science and Technology Co., Ltd. (000926.SZ) increased shareholding by 2.92 million shares of the company during Oct. 28 and Nov. 3. Huang Chaohua, executive vice president of Guangdong Orient Zirconic Ind Sci and Tech Co., Ltd. (002167.SZ) increased shareholding by 1,015,900 shares of the company on Nov. 2.
○Aluminum Corporation Of China Limited (601600.SH) plans to transfer water-related assets of ten enterprises at a price of no less than 1.164 billion yuan through listing information on property rights transactions. Calxon Group, a wholly-owned subsidiary of China Calxon Group Co., Ltd. (000918.SZ) plans to transfer 100 percent equity of Qingdao Calxon at no less than 1.6 billion yuan through listing information on property rights transactions.
[Trading Alarms]
○Nasoft to launch IPO on Nov. 4
------
Beijing Nasoft Co., Ltd. (300561.SZ) is going to launch IPO at a price of 26.11 yuan per share with an upper subscription limit of 14,000 shares for single account. The PE ratio is 22.99 times. The company is specialized in management of internal control risk of physical flow of banks.
TOP
○Rare earth price slightly rebounds, state's purchase and storage still expected within 2016
○Timetable for development of intelligent connected vehicles to release, work team established
○13th five-year plan for integrated development of informatization and industrialization to release, numerical control rate of key process to reach 50 pct
○Kingking Applied Chemistry fully controls UCO.com, Sales price of principal products of Titanium Dioxide Chemical to increase
[SSN Focus]
○Rare earth price slightly rebounds, state's purchase and storage still expected within 2016
------
The rare earth price recovers slightly on Nov. 3. The price of praseodymium-neodymium oxide surged to 246,000 to 248,000 yuan/tonne from 243,000 yuan/tonne in mid-October. The price of metal praseodymium-neodymium also hiked to 317,000 to 320,000 yuan/tonne from 313,000 yuan/tonne. The newly-released 13th five-year plan on the rare earth industry proposes that the total production will be within 140,000 tonnes by 2020. The six rare earth groups will complete the consolidation in the mining, smelting and comprehensive use of rare earths.
Comment: Considering that current price of rare earth is still low in recent years, the industry is eager for the state's purchase and storage. Institutions believe that on account of the precedent that the state's purchase and storage of tungsten finally succeeded after two failures, an agreement on the state's purchase and storage of rare earth might be reached between the rare earth groups and National Reserve Bureau after repeated negotiation. Relevant companies like Rising Nonferrous Metals Share Co., Ltd. (600259.SH), Shenghe Resources Holding Co., Ltd. (600392.SH) and Xiamen Tungsten Co., Ltd. (600549.SH) attract attention of institutions.
[SSN Selection]
○SSN learnt that Shenzhen Stock Exchange has granted 24 members like Huatai Securities, Shenwan Hongyuan Securities and China Merchants Securities with the access to the southbound trading of Shenzhen-Hong Kong Stock Connect.
○China United Network Communications Limited (600050.SH) indicated on Nov. 3 that partners with strong complementation in business will be invited to get involved in its mixed ownership reform; Li Yanhong, head of internet giant Baidu Inc., and Pony Ma Huateng, founder of Tencent Holdings, announced on the same day that they have entered into strategic partnership with China United Network Communications.
○Equity change of Hua Xia Bank Co., Ltd. (600015.SH) was nodded by China Banking Regulatory Commission (CBRC). The People's Insurance Company of China (PICC) will obtain 2,136 million shares of Hua Xia Bank from Deutsche Bank.
○Guangdong Yantang Dairy Co., Ltd. (002732.SZ) announced trading suspension for self-examination due to abnormal trading fluctuation; the trading volume ranking list shows that several previously outstanding performers like Sichuan Shuangma Cement Co., Ltd. (000935.SZ) suffered net selling by floating money.
○Zhejiang Dongliang New Material Co., Ltd. (002082.SZ) announced that as of Oct. 31, Evergrande Life Assurance Co., Ltd. has reduced shareholding of the company by 4.3 percent, making itself no longer among top 10 shareholders.
TOP
[Industry Information]
○Timetable for development of intelligent connected vehicles to release, work team established
------
SSN learnt that timetable for the development of intelligent connected vehicles might be rolled out in Q1 of 2017. Relevant detailed rules about intelligent connected vehicles will be worked out before year end. According to experts' introduction, the Society of Automotive Engineers of China has established V2X industry promotion work team to work on the timetable. China Datang Corporation, Huawei and etc. will take the lead in establishing V2X physical criterions; China Electric Power Research Institute will be in charge of the criterions for transport layer; General Motors Corporation (China), Changan Auto Corporation and Tsinghua University will be responsible for vehicle applications.
Comment: McKinsey forecasts in its research report that by 2025, intelligent vehicles will yield an output value of 200 billion US dollars to 1.9 trillion US dollars. Industrial Securities Co., Ltd. (601377.SH) expects that mature products based on LTE-V vehicle networking standards will be seen in 2017, and commercial use might be officially realized in 2018. As to listed companies, Zhejiang Vie Science ＆ Technology Co., Ltd. (002590.SZ) has made arrangement in advanced driver assistance system (ADAS); Datang Telecom Technology Co., Ltd. (600198.SH) is a provider for LTE-V chips and solutions.
TOP
○13th five-year plan for integrated development of informatization and industrialization to release, numerical control rate of key process to reach 50 pct
------
The Ministry of Industry and Information Technology (MIIT) recently rolled out the Integrated Development Plan for Informatization and Industrialization (2016-2020). It is proposed that by 2020, national integrated development index for informatization and industrialization reaches 85, 12 higher than the figure in 2015. The fining, flexibility and intellectualization level of production mode will be greatly enhanced, and the numerical control rate of key process reaches 50 percent; the scale of new-type intelligent hardware products and service market exceeds 1 trillion yuan; the R＆D and industrialization of automatic control and sensing technology achieve breakthroughs. Industrial cloud and intelligent service platform gradually become infrastructure of intelligent manufacturing.
Comment: At present, as China's manufacturing is faced with challenges of strengthened restriction of resources and environment, increasing factor cost and slowdown in investment and export, in-depth integration of informatization and industrialization will help enterprises optimize resource allocation, enhance efficiency of production and operation, improve product category structure and improve adaptation and flexibility of structure of supply. But the rapid development of information technology bolsters the development of integration of informatization and industrialization. Shenzhen Maxonic Automation Control Co., Ltd. (300112.SZ) plans to invest in projects of medium and high-end numerical control and sensor through private placement. Shanghai MJ Intelligent System Co., Ltd., a subsidiary of Wuhan Huazhong Numerical Control Co., Ltd. (600172.SH) is engaged in intelligent factory and industrial automation.
○Big data becomes new development direction of medical industry
------
The first China Hospital Capability Construction and Development Conference and Healthcare Data Application and Development Conference is held in Beijing during Nov. 2-3. Gen Qingshan, secretary of the party committee of Guangdong General Hospital, shared "Future Medical Science Based on Big Data" during the conference. In his opinion, with rapid development and application of big data, IT field and medical service institutions should be more open. Only by fully integrating cutting-edge technology and medical service can efficiency of medical service be truly improved.
Comment: At present, Wonders Information Co., Ltd. (300168.SZ), Winning Health Technology Group Co., Ltd. (300253.SZ) and Searainbow Holding Corp. (000503.SZ) have embarked on medical informatization industry. The common point is that they all improve medical service efficiency via Internet technology and explore commercialized value of medical big data from the aspects of regional health informatization management, hospital informatization management and medical insurance management. On the other hand, Andon Health Co., Ltd. (002432.SZ), Lepu Medical Technology (Beijing) Co., Ltd. (300003.SZ), Jiangsu Yuyue Medical Equipment ＆ Supply Co., Ltd. (002223.SZ) and Meinian Onehealth Healthcare Holdings Co., Ltd. (002044.SZ) aims to improve quality of medical service based on hardware and service terminal and seeking for technological integration.
TOP
[Announcement Interpretation]
○Kingking Applied Chemistry acquires UCO.com at RMB680 mln
------
Qingdao Kingking Applied Chemistry Co., Ltd. (002094.SZ) plans to buy 63 percent equity of UCO.com at 680 million yuan by issuing about 15.3 million shares at a price of 23 yuan per share through private placement and by paying 328 million yuan in cash. Meanwhile, it will raise supporting funds of 344 million yuan by issuing shares at a price of 23.25 yuan per share at least through private placement. After the acquisition is finished, the company will hold 100 percent equity in UCO.com.
UCO.com is able to provide one-stop e-commerce service for many international cosmetics brands. The counterparty promises that net profit of UCO.com will not be less than 67 million yuan, 100 million yuan and 123 million yuan during 2016 and 2018 respectively.
○Sales price of principal products of Titanium Dioxide Chemical to increase
------
Nanjing Titanium Dioxide Chemical Co., Ltd., a wholly-owned subsidiary of Jilin Gpro Titanium Industry Co., Ltd., decided to raise prices of rutile titanium dioxide and anatase titanium dioxide from Nov. 3 on. Sales price in domestic market will be raised by 500 yuan per ton and export price will be raised by 80 US dollars per ton.
○Restructuring proposals of B-soft Co., Ltd. (300451.SZ) and Guangdong Nan Yang Cable Group Holding Co., Ltd. (002212.SZ) are approved by China Securities Regulatory Commission (CSRC) unconditionally. Shenzhen Prince New Materials Co., Ltd. (002735.SZ) and Yunnan Energy Investment Co., Ltd. (002053.SZ) terminated restructuring and resumed trading.
○Jiangxi Coal Industry Group Co., Ltd., a wholly-owned subsidiary of Anyuan Coal Industry Group Co., Ltd. (600397.SH), gains governmental subsidy worth 487 million yuan.
○Controlling shareholders of Jiangsu Linyang Energy Co., Ltd. (601222.SH) increased shareholding by 2.91 million shares of the company during Nov. 2-3. Controlling shareholders of HuBei Fuxing Science and Technology Co., Ltd. (000926.SZ) increased shareholding by 2.92 million shares of the company during Oct. 28 and Nov. 3. Huang Chaohua, executive vice president of Guangdong Orient Zirconic Ind Sci and Tech Co., Ltd. (002167.SZ) increased shareholding by 1,015,900 shares of the company on Nov. 2.
○Aluminum Corporation Of China Limited (601600.SH) plans to transfer water-related assets of ten enterprises at a price of no less than 1.164 billion yuan through listing information on property rights transactions. Calxon Group, a wholly-owned subsidiary of China Calxon Group Co., Ltd. (000918.SZ) plans to transfer 100 percent equity of Qingdao Calxon at no less than 1.6 billion yuan through listing information on property rights transactions.
[Trading Alarms]
○Nasoft to launch IPO on Nov. 4
------
Beijing Nasoft Co., Ltd. (300561.SZ) is going to launch IPO at a price of 26.11 yuan per share with an upper subscription limit of 14,000 shares for single account. The PE ratio is 22.99 times. The company is specialized in management of internal control risk of physical flow of banks.
TOP
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