[Today's Guide]
○State council issues circular to deepen medical and healthcare system reform, private hospitals to benefit
○China gains further advantage in R＆D of 5G technologies, application of RF components to widen
○Keybridge Communications invests in Shanghai Jifu Information Technology Service
○Zhongguang Lightning Protection Technologies to acquire Tekarms Protective Electric, Gettop Acoustic to acquire Yuehua Entertainment with RMB1,890 mln
[SSN Focus]
○State council issues circular to deepen medical and healthcare system reform, private hospitals to benefit
------
Xinhua News Agency on Nov. 8 released certain opinions from the leadership team of deepening medical and healthcare system reform at the State Council about further promoting and deepening reform experience on medical and health system in full text. It is proposed to make use of typical experience from 8 aspects, and develop the reform in depth and breadth. Prices of medical services will be gradually straightened out; prices of medical projects that show the value of technical services provided by medical workers will be raised; the development level of private hospitals will be improved; efforts will be made in ensuring that non-public and public medical institutions see equal treatment in areas like market access.
Comment: Advancing medical service price reform will make the basic medical service projects provided by private hospitals enjoy the benefit brought by the decontrolling of prices and make private hospitals gain broader development space. The optimized environment for the development of private hospitals will also boost the expansion of private hospitals. Companies like Huapont Life Sciences Co., Ltd. (002004.SZ) engaged in rehabilitation, Top Choice Medical Investment Co., Inc. (600763.SH) involved in dentistry and Meinian Onehealth Healthcare Holdings Co., Ltd. (002044.SZ) focusing on physical examination attract attention of institutions.
[SSN Selection]
○Xu Shaoshi, director of the National Development and Reform Commission (NDRC), on Nov. 8 chaired an inter-ministerial joint meeting on de-capacity, deleverage and cost reduction, requiring actively and steadily advancing the pilot of debt-to-equity swap.
○The CPI and PPI data for October will be unveiled on Oct. 9. A year-on-year growth around 2.1 percent and 1 percent is expected.
○The People's Bank of China on Nov. 8 released China Monetary Policy Report Q3. It is said that it is working on covering off-balance-sheet financing in the indicators for broad-sense credit.
○Securities margin saw a net inflow of 6.1 billion yuan last week, representing a net inflow for the second consecutive week.
○Shanghai Futures Exchange and Zhengzhou Commodity Exchange require accounts of all asset management products put relevant information on records; www.sxcoal.com released a notice about temporary suspending of CCI Thermal Index.
○Beijing Leshi Internet Information ＆ Technology Corp. issued a clarification announcement and responded to media report. It also expected that the injection of Le Vision Pictures cannot be completed within 2016.
TOP
[Industry Information]
○China gains further advantage in R＆D of 5G technologies, application of RF components to widen
------
It is learnt from the official website of the Ministry of Industry and Information Technology (MIIT) that the 2016 World Telecommunication Standardization Assembly (WTSA16) recently ended. The proposal on IMT-2020 (5G) standardization research tabled by China was approved on the meeting, and resolution was developed. The new resolution requires all ITU-T research teams to actively develop standardization study about 5G technologies. The meeting called on all member countries to actively participate in the research and standardization of 5G technologies so as to ensure that feasible 5G standard schemes can be provided globally. In addition, 5 revised resolutions, with software defined networks (SDN), consistency and interoperation testing included, led by China were also approved on the meeting.
Comment: The approval of several proposals on the WTSA16 further consolidates China's leading edge in the R＆D of 5G technologies. Institutions believe that the evolution of 5G technologies will be a gradual process. Innovative radio frequency (RF) component technologies might be applied. As expected by Gartner, the annual output value of global RF components will multiply by 2020. The product line of Shenzhen Sunway Communication Co., Ltd. (300136.SZ) has been expanded from antenna to RF isolation, RF connector and RF materials; Huizhou Speed Wireless Technology Co., Ltd. (300322.SZ) is a leader in the R＆D of 5G antennas and RF front end module in China.
○Domestic vehicles production and sales hike in Oct., new types maintained strong performance
------
Based on the statistics released by the China Passenger Car Association (CPCA) on Nov. 8, the production and sales of vehicles in China both increased in October 2016. The total sales of narrowly defined passenger vehicles in October reached 2,189,500, representing a year-on-year increase of 21.7 percent. The total sales volume in the first ten months reached 18,174,000, increasing 18 percent year on year.
Comment: It is reported that the high growth is based on the high base of last October. Many new models with propriety brands were introduced. GAC, Geely and SAIC introduced many new products and maintained strong performance.
TOP
[Announcement Interpretation]
○Keybridge Communications acquires third-party asset with RMB945 mln in cash
------
Shenzhen Keybridge Communications Co., Ltd. (002316.SZ) proposes to acquire 45 percent equities of Shanghai Jifu Information Technology Service Co., Ltd. with 945 million yuan in cash, representing an estimated value-added ratio of 881.58 percent. Shanghai Dianbaiqu Information Technology Co., Ltd., a subsidiary under Jifu Information Technology Service, is one of the 43 institutions that have obtained payment license for capital settlement business in China. The counterparty promised that the net profit of Jifu Information Technology Service during 2016 and 2018 will be no less than 150 million yuan, 200 million yuan and 250 million yuan.
○ Modern Avenue Group to acquire internet company with RMB490 mln
------
Modern Avenue Group Co., Ltd. (002656.SZ) proposes to issue 20.76 million shares at 14.16 yuan per share and pay 196 million yuan in cash to acquire the 100 percent equities of Pinssible Netcom Science ＆ Technology Corp. Ltd., with a total of 490 million yuan (estimated value-added rate of 1,024.77 percent). Meanwhile, it plans to raise 230 million yuan through private placement at a price no less than 15.71 yuan per share.
The targeted company is mainly engaged in development and operation of mobile internet applications, with over 40 types of mobile social applications researched and developed. It promises to realize a net profit after deduction no less than 33 million, 45.50 million and 61.50 million yuan from 2016 to 2018 respectively.
TOP
○ Zhongguang Lightning Protection Technologies to acquire Tekarms Protective Electric, expanding industrial chain of rail transit
------
Sichuan Zhongguang Lightning Protection Technologies Co., Ltd. (300414.SZ) plans to carry out private placement at 34 yuan per share and pay 27 million yuan in cash to acquire the 100 percent equities of Shenzhen Tekarms Protective Electric Co., Ltd. with a total of 108 million yuan. The latter is professionally engaged in production and sales of anti-thunder products for rail transit industry, and anti-thunder engineering design ＆ construction for the railway industry. Tekarms Protective Electric commits to achieve a net profit no less than 10 million, 12 million, 16 million and 22 million yuan from 2016 to 2019 respectively.
○ Gettop Acoustic to acquire Yuehua Entertainment with RMB1,890 mln
------
Shandong Gettop Acoustic Co., Ltd. (002655.SZ) proposes to issue 56.61 million shares through private placement at 13.92 yuan per share and pay 1,100 million yuan in cash to acquire the 100 equities of Yuehua Entertainment Co., Ltd. with a total of 1,890 million yuan. Meanwhile, it also plans to raise 787 million yuan as the supporting fund. The latter is a big entertainment company integrating artist brokerage training, music making ＆ publishing, as well as movie ＆ TV play investment. Based on the performance commitment, the target will realize a net profit after deduction no less than 150 million, 190 million and 250 million yuan from 2016 to 2018 respectively.
○ Daoming Optics ＆ Chemical to merge Dewei Advanced Materials with RMB350 mln
------
Daoming Optics ＆ Chemical Co., Ltd. (002632.SZ) proposes to carry out private placement at 10.49 yuan per share and pay some proportion in cash to acquire the 100 percent equities of Jiangsu Dewei Advanced Materials Co., Ltd. (300325.SZ) with a total of 350 million yuan. Meanwhile, it also plans to raise 182 million yuan through private placement as the supporting fund, and the benchmark date of offering price is the first day of issuance. Based on performance commitment, Dewei Advanced Materials should realize a net profit of 27 million, 34 million and 44 million yuan from 2016 to 2018 respectively, which is mainly engaged in multi-functional blasting coiled material and optical membrane for LCD, with TCL, Skyworth, Konka and etc. as clients.
○ 5 pct equities of DHC Software to be transferred to China Shipping Haisheng
------
Beijing DHC Chengxin Industrial Equipment Co., Ltd., the persons acting in concert of actual controller of DHC Software Co., Ltd. (002065.SZ), proposes to transfer its held 5 percent equities to China Shipping Haisheng Co., Ltd. (600896.SH) at a negotiated price of 21.05 yuan per share, totaling at 1,652 million yuan. After the transaction, DHC Chengxin Industrial Equipment will hold 4.37 percent equities of DHC Software. Last June, Mi Chunlei has become the actual controller of China Shipping Haisheng.
○ Xie Xianxing bought 5 pct equities of Haida Rubber and Plastic
------
Xie Xianxing, shareholder of Jiangyin Haida Rubber and Plastic Co., Ltd. (300320.SZ), has accumulatively bought 14.6674 million shares of the listed company from July to November, accounting for 5 percent of the total equity, which reached a placarded threshold. Xie is suspected to be one of the actual controllers of Yotrio Group Co., Ltd. (002489.SZ), who said that the mentioned action aims to realize value-added yield from investing in stocks.
○ Huang Guozhong, main shareholder of Guanghe landscape Culture Communication Co., Ltd, ShanXi (600234.SH), has held 9.88 percent equities of the listed company, but these shareholdings will be put in auction by the court. After the auction, actual controller will be altered.
○ The restructuring of Zhejiang Yilida Ventilator Co., Ltd. (002686.SZ) has been unconditionally approved by China Securities Regulatory Commission, with that of Ningbo Xinhai Electric Co., Ltd. (002120.SZ) conditionally approved.
[Data Speaks]
○ Some stocks more likely to remove ST title
------
With the arriving end of this year, the market gradually expects more on ST title remove of some stocks. 37 stocks have removed the ST title as they realized annual profits in 2015, and besides five stocks suspending the trading, the rest of 32 ones have achieved an average performance growth of 16.87 percent in the fourth quarter of 2015.
Up to now, 28 stocks with ST title have released the whole-year performance forecasts for 2016, and 13 of them are likely to stop the losses and gain profits. In terms of net profit forecast ranking high, there are Innovation Medical Management Co., Ltd. (002173.SZ), Jiangsu Lanfeng Bio-chemical Co., Ltd. (002513.SZ), Zoneco Group Co., Ltd. (002069.SZ) and etc. Additionally, among those with ST title but having not released annual performance forecasts, 15 ones achieved profits in the third quarter of 2016, with Henan Shenhuo Coal＆Power Co., Ltd. (000933.SZ), China Enterprise Company Limited (600675.SH), Jinguyuan Holding Co., Ltd. (000408.SZ) and etc. ranking high regarding to their net profit. Those announcing loss-stopping and profit-gaining in the whole-year performance forecasts and achieving great profit in the third quarter are most likely to remove the ST title after issuing the annual reports, institutional insiders believed.
[Trading Alarms]
○ Kindly Enterprise Development and Asymchem Laboratories to issue new shares on Nov. 9
------
Shanghai Kindly Enterprise Development Group Co., Ltd. (603987.SH) will carry out IPOs at 9.5 yuan per share, with upper subscription limit of 20,000 shares, which is mainly engaged in puncture instrument for medical treatment. The offering price for Asymchem Laboratories (Tianjin) Co., Ltd. (002821.SZ) is 30.53 yuan per share, with upper subscription limit of 11,000 shares, which is mainly engaged in comprehensive outsourcing services for medicines.
TOP
○State council issues circular to deepen medical and healthcare system reform, private hospitals to benefit
○China gains further advantage in R＆D of 5G technologies, application of RF components to widen
○Keybridge Communications invests in Shanghai Jifu Information Technology Service
○Zhongguang Lightning Protection Technologies to acquire Tekarms Protective Electric, Gettop Acoustic to acquire Yuehua Entertainment with RMB1,890 mln
[SSN Focus]
○State council issues circular to deepen medical and healthcare system reform, private hospitals to benefit
------
Xinhua News Agency on Nov. 8 released certain opinions from the leadership team of deepening medical and healthcare system reform at the State Council about further promoting and deepening reform experience on medical and health system in full text. It is proposed to make use of typical experience from 8 aspects, and develop the reform in depth and breadth. Prices of medical services will be gradually straightened out; prices of medical projects that show the value of technical services provided by medical workers will be raised; the development level of private hospitals will be improved; efforts will be made in ensuring that non-public and public medical institutions see equal treatment in areas like market access.
Comment: Advancing medical service price reform will make the basic medical service projects provided by private hospitals enjoy the benefit brought by the decontrolling of prices and make private hospitals gain broader development space. The optimized environment for the development of private hospitals will also boost the expansion of private hospitals. Companies like Huapont Life Sciences Co., Ltd. (002004.SZ) engaged in rehabilitation, Top Choice Medical Investment Co., Inc. (600763.SH) involved in dentistry and Meinian Onehealth Healthcare Holdings Co., Ltd. (002044.SZ) focusing on physical examination attract attention of institutions.
[SSN Selection]
○Xu Shaoshi, director of the National Development and Reform Commission (NDRC), on Nov. 8 chaired an inter-ministerial joint meeting on de-capacity, deleverage and cost reduction, requiring actively and steadily advancing the pilot of debt-to-equity swap.
○The CPI and PPI data for October will be unveiled on Oct. 9. A year-on-year growth around 2.1 percent and 1 percent is expected.
○The People's Bank of China on Nov. 8 released China Monetary Policy Report Q3. It is said that it is working on covering off-balance-sheet financing in the indicators for broad-sense credit.
○Securities margin saw a net inflow of 6.1 billion yuan last week, representing a net inflow for the second consecutive week.
○Shanghai Futures Exchange and Zhengzhou Commodity Exchange require accounts of all asset management products put relevant information on records; www.sxcoal.com released a notice about temporary suspending of CCI Thermal Index.
○Beijing Leshi Internet Information ＆ Technology Corp. issued a clarification announcement and responded to media report. It also expected that the injection of Le Vision Pictures cannot be completed within 2016.
TOP
[Industry Information]
○China gains further advantage in R＆D of 5G technologies, application of RF components to widen
------
It is learnt from the official website of the Ministry of Industry and Information Technology (MIIT) that the 2016 World Telecommunication Standardization Assembly (WTSA16) recently ended. The proposal on IMT-2020 (5G) standardization research tabled by China was approved on the meeting, and resolution was developed. The new resolution requires all ITU-T research teams to actively develop standardization study about 5G technologies. The meeting called on all member countries to actively participate in the research and standardization of 5G technologies so as to ensure that feasible 5G standard schemes can be provided globally. In addition, 5 revised resolutions, with software defined networks (SDN), consistency and interoperation testing included, led by China were also approved on the meeting.
Comment: The approval of several proposals on the WTSA16 further consolidates China's leading edge in the R＆D of 5G technologies. Institutions believe that the evolution of 5G technologies will be a gradual process. Innovative radio frequency (RF) component technologies might be applied. As expected by Gartner, the annual output value of global RF components will multiply by 2020. The product line of Shenzhen Sunway Communication Co., Ltd. (300136.SZ) has been expanded from antenna to RF isolation, RF connector and RF materials; Huizhou Speed Wireless Technology Co., Ltd. (300322.SZ) is a leader in the R＆D of 5G antennas and RF front end module in China.
○Domestic vehicles production and sales hike in Oct., new types maintained strong performance
------
Based on the statistics released by the China Passenger Car Association (CPCA) on Nov. 8, the production and sales of vehicles in China both increased in October 2016. The total sales of narrowly defined passenger vehicles in October reached 2,189,500, representing a year-on-year increase of 21.7 percent. The total sales volume in the first ten months reached 18,174,000, increasing 18 percent year on year.
Comment: It is reported that the high growth is based on the high base of last October. Many new models with propriety brands were introduced. GAC, Geely and SAIC introduced many new products and maintained strong performance.
TOP
[Announcement Interpretation]
○Keybridge Communications acquires third-party asset with RMB945 mln in cash
------
Shenzhen Keybridge Communications Co., Ltd. (002316.SZ) proposes to acquire 45 percent equities of Shanghai Jifu Information Technology Service Co., Ltd. with 945 million yuan in cash, representing an estimated value-added ratio of 881.58 percent. Shanghai Dianbaiqu Information Technology Co., Ltd., a subsidiary under Jifu Information Technology Service, is one of the 43 institutions that have obtained payment license for capital settlement business in China. The counterparty promised that the net profit of Jifu Information Technology Service during 2016 and 2018 will be no less than 150 million yuan, 200 million yuan and 250 million yuan.
○ Modern Avenue Group to acquire internet company with RMB490 mln
------
Modern Avenue Group Co., Ltd. (002656.SZ) proposes to issue 20.76 million shares at 14.16 yuan per share and pay 196 million yuan in cash to acquire the 100 percent equities of Pinssible Netcom Science ＆ Technology Corp. Ltd., with a total of 490 million yuan (estimated value-added rate of 1,024.77 percent). Meanwhile, it plans to raise 230 million yuan through private placement at a price no less than 15.71 yuan per share.
The targeted company is mainly engaged in development and operation of mobile internet applications, with over 40 types of mobile social applications researched and developed. It promises to realize a net profit after deduction no less than 33 million, 45.50 million and 61.50 million yuan from 2016 to 2018 respectively.
TOP
○ Zhongguang Lightning Protection Technologies to acquire Tekarms Protective Electric, expanding industrial chain of rail transit
------
Sichuan Zhongguang Lightning Protection Technologies Co., Ltd. (300414.SZ) plans to carry out private placement at 34 yuan per share and pay 27 million yuan in cash to acquire the 100 percent equities of Shenzhen Tekarms Protective Electric Co., Ltd. with a total of 108 million yuan. The latter is professionally engaged in production and sales of anti-thunder products for rail transit industry, and anti-thunder engineering design ＆ construction for the railway industry. Tekarms Protective Electric commits to achieve a net profit no less than 10 million, 12 million, 16 million and 22 million yuan from 2016 to 2019 respectively.
○ Gettop Acoustic to acquire Yuehua Entertainment with RMB1,890 mln
------
Shandong Gettop Acoustic Co., Ltd. (002655.SZ) proposes to issue 56.61 million shares through private placement at 13.92 yuan per share and pay 1,100 million yuan in cash to acquire the 100 equities of Yuehua Entertainment Co., Ltd. with a total of 1,890 million yuan. Meanwhile, it also plans to raise 787 million yuan as the supporting fund. The latter is a big entertainment company integrating artist brokerage training, music making ＆ publishing, as well as movie ＆ TV play investment. Based on the performance commitment, the target will realize a net profit after deduction no less than 150 million, 190 million and 250 million yuan from 2016 to 2018 respectively.
○ Daoming Optics ＆ Chemical to merge Dewei Advanced Materials with RMB350 mln
------
Daoming Optics ＆ Chemical Co., Ltd. (002632.SZ) proposes to carry out private placement at 10.49 yuan per share and pay some proportion in cash to acquire the 100 percent equities of Jiangsu Dewei Advanced Materials Co., Ltd. (300325.SZ) with a total of 350 million yuan. Meanwhile, it also plans to raise 182 million yuan through private placement as the supporting fund, and the benchmark date of offering price is the first day of issuance. Based on performance commitment, Dewei Advanced Materials should realize a net profit of 27 million, 34 million and 44 million yuan from 2016 to 2018 respectively, which is mainly engaged in multi-functional blasting coiled material and optical membrane for LCD, with TCL, Skyworth, Konka and etc. as clients.
○ 5 pct equities of DHC Software to be transferred to China Shipping Haisheng
------
Beijing DHC Chengxin Industrial Equipment Co., Ltd., the persons acting in concert of actual controller of DHC Software Co., Ltd. (002065.SZ), proposes to transfer its held 5 percent equities to China Shipping Haisheng Co., Ltd. (600896.SH) at a negotiated price of 21.05 yuan per share, totaling at 1,652 million yuan. After the transaction, DHC Chengxin Industrial Equipment will hold 4.37 percent equities of DHC Software. Last June, Mi Chunlei has become the actual controller of China Shipping Haisheng.
○ Xie Xianxing bought 5 pct equities of Haida Rubber and Plastic
------
Xie Xianxing, shareholder of Jiangyin Haida Rubber and Plastic Co., Ltd. (300320.SZ), has accumulatively bought 14.6674 million shares of the listed company from July to November, accounting for 5 percent of the total equity, which reached a placarded threshold. Xie is suspected to be one of the actual controllers of Yotrio Group Co., Ltd. (002489.SZ), who said that the mentioned action aims to realize value-added yield from investing in stocks.
○ Huang Guozhong, main shareholder of Guanghe landscape Culture Communication Co., Ltd, ShanXi (600234.SH), has held 9.88 percent equities of the listed company, but these shareholdings will be put in auction by the court. After the auction, actual controller will be altered.
○ The restructuring of Zhejiang Yilida Ventilator Co., Ltd. (002686.SZ) has been unconditionally approved by China Securities Regulatory Commission, with that of Ningbo Xinhai Electric Co., Ltd. (002120.SZ) conditionally approved.
[Data Speaks]
○ Some stocks more likely to remove ST title
------
With the arriving end of this year, the market gradually expects more on ST title remove of some stocks. 37 stocks have removed the ST title as they realized annual profits in 2015, and besides five stocks suspending the trading, the rest of 32 ones have achieved an average performance growth of 16.87 percent in the fourth quarter of 2015.
Up to now, 28 stocks with ST title have released the whole-year performance forecasts for 2016, and 13 of them are likely to stop the losses and gain profits. In terms of net profit forecast ranking high, there are Innovation Medical Management Co., Ltd. (002173.SZ), Jiangsu Lanfeng Bio-chemical Co., Ltd. (002513.SZ), Zoneco Group Co., Ltd. (002069.SZ) and etc. Additionally, among those with ST title but having not released annual performance forecasts, 15 ones achieved profits in the third quarter of 2016, with Henan Shenhuo Coal＆Power Co., Ltd. (000933.SZ), China Enterprise Company Limited (600675.SH), Jinguyuan Holding Co., Ltd. (000408.SZ) and etc. ranking high regarding to their net profit. Those announcing loss-stopping and profit-gaining in the whole-year performance forecasts and achieving great profit in the third quarter are most likely to remove the ST title after issuing the annual reports, institutional insiders believed.
[Trading Alarms]
○ Kindly Enterprise Development and Asymchem Laboratories to issue new shares on Nov. 9
------
Shanghai Kindly Enterprise Development Group Co., Ltd. (603987.SH) will carry out IPOs at 9.5 yuan per share, with upper subscription limit of 20,000 shares, which is mainly engaged in puncture instrument for medical treatment. The offering price for Asymchem Laboratories (Tianjin) Co., Ltd. (002821.SZ) is 30.53 yuan per share, with upper subscription limit of 11,000 shares, which is mainly engaged in comprehensive outsourcing services for medicines.
TOP
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