[Today's Guide]
○ China Hi-Tech to reorganize with Sinomach, central enterprises consolidation speeds up
○ Molybdenum concentrates price surges nearly 40 pct this year and keeps surging
○ "Double conservation" action plan on water resource issued, water-saving irrigation and sewage treatment companies confronted with opportunities
○ Promoting private enterprises' participation of military products, Honyu Wear-Resistant New Materials sign PIP technology research agreement
[SSN Focus]
○ China Hi-Tech to reorganize with Sinomach, central enterprises consolidation speeds up
------
Jingwei Textile Machinery Company Limited (000666.SZ) and Kama Co., Ltd. (900953) announced that China Hi-Tech Group Corporation and Sinomach, the actual controllers of the two companies, signed a reorganization agreement on Nov. 10. The entire property rights of China Hi-Tech will be transferred to Sinomach for free and China Hi-Tech will become a wholly-owned subsidiary of Sinomach. The move will strengthen the core ability of the main businesses of the two companies and promote business resources coordination and sharing. China Hi-Tech has conducted asset consolidations in recent years. The controlling rights in Huaxun Fangzhou Co., Ltd. (000687.SZ, formerly known as Swan Fiber Co., Ltd.) and Chtc Helon Co., Ltd. (000677.SZ), the two listed companies previously under it, have been transferred to private enterprises.
Comment: Sinomach is the biggest central enterprise in Chinese machinery industry with complete industrial chains. The machinery business is also one of the main business sectors of China Hi-Tech. The State-owned Assets Supervision and Administration Commission (SASAC) proposed that the number of central enterprises will be reduced to less than 100 this year. The number of central enterprises is 102 after China Hi-Tech was transferred into Sinomach. The consolidation will speed up by the year-end. CITIC Securities Company Limited (06030.HK; 600030.SH) believes that the central enterprise consolidation will be conducted in three ways: firstly, the merger in construction and other industries; secondly, the consolidation in the upper- and down-stream of the coal, power and metallurgy industries; thirdly, specialization in airfreight and other industries.
[SSN Selection]
○ The State Council released a circular on Nov. 10, requiring promoting the new round of pilots on free trade zones.
○ Based on the statistics of the China Association of Automobile Manufacturers, the sales of new energy vehicles increased 8.1 percent year on year in October. It is reported that the subsidy policies on new energy will be introduced by the end of the year.
○ The National Development and Reform Commission announced that it will deregulate the prices of gas for fertilizers from Nov. 10. It is another key measure in the reform of the pricing of natural gas.
○ The statistics of the China Banking Regulatory Commission show that the non-performing loan ratio of commercial banks at the end of the third quarter increased 0.01 percent from the end of the previous quarter. Large banks saw significant improvements.
○ The People's Procuratorate of Qingdao City institute a public prosecution against Xu Xiang and the chairmen and actual controllers of relevant listed companies for being suspected in manipulating the securities market on Nov. 10.
TOP
[Industry Information]
○ Molybdenum concentrates price surges nearly 40 pct this year and keeps surging
------
SSN learnt that the price of molybdenum concentrates rose on Nov. 10. The price of 45 percent molybdenum concentrate hiked 10 yuan/tonne. Statistics show that the price of molybdenum concentrates increased by 8 percent in recent month. It has surged 38 percent this year. The prices of molybdenum oxide and ferromolybdenum also jumped significantly. It is reported that the molybdenum concentrate market saw active trading and downstream factories are actively procuring. Domestic mines saw tight spot products and sufficient orders and the transaction prices increased. The dominant price of over 40 percent molybdenum concentrates reached above 1,000 yuan/tonne. In addition, the surging ferromolybdenum price in international markets also boosted domestic enterprises.
Comment: The prices of steel materials have been recovering this year and the output of crude steel also surged. Molybdenum is a key raw material for steel materials. In addition, the increasing demand in the high-speed railway, nuclear power, maritime equipment and other high-end industries will promote the molybdenum consumption in the long term. The recovery in the downstream demands will improve the profitability of the molybdenum concentrate and molybdenum products industries. Jinduicheng Molybdenum Co., Ltd. (601958.SH), China Molybdenum Co., Ltd. (03993.HK; 603993.SH) and other industrial leaders own advantages in the whole industry and will benefit more from the performance recovery caused by the surging prices.
TOP
○ "Double conservation" action plan on water resource issued, water-saving irrigation and sewage treatment companies confronted with opportunities
------
The Ministry of Water Resources (MWR) and the National Development and Reform Commission recently issued Double Conservation Plan on Total Amount and Intensity of Water Consumption during the 13th Five-Year Period recently, which proposed that the total water consumption nationwide should be limited within in 670 billion cubic meters by 2020. The water consumption amount and of 10,000 yuan GDP and 10,000 yuan industrial added value should be reduced by 23 percent and 20 percent from that of 2015; the average agricultural irrigation water consumption per Mu should be decreased significantly, and the effective utilization coefficients of irrigation water should be improved by more than 0.55; steadily push forward water right system construction; coordinate and carry forward water right transaction platform construction.
Comment: the plan explicitly set out the water conservation targets in industrial and agricultural fields. It will bring opportunities for relevant enterprises engaged in water-saving irrigation, sewage treatment and recycling and sponge city construction. Dayu Water-saving Group Co., Ltd. (300021.SZ) is involved in farmland water conservation projects and contract water-saving management; Sichuan Scimee Sci. ＆ Tech. Co., Ltd. (300425.SZ) is engaged in magnetic separation water purification technology, which could be used for coal mine water treatment and black and odorous water treatment. With the promotion of water right transaction, institutions are optimistic that sewage operation enterprise with national deployment will benefit.
TOP
[Announcement Interpretation]
○Promoting private enterprises' participation of military products, Honyu Wear-Resistant New Materials signs PIP technology research agreement
------
Honyu Wear-Resistant New Materials Co., Ltd. (300345.SZ) recently entered into "intention agreement on PIP technology application research for a new type of weapon" with a military research institute. It is the beginning for the company to participate in major scientific project of a research institute, indicating that the company's PIP technology has made a great step forward in the participation of military products. PIP technology could provide surface peening treatment for various metal parts, and enhance the wear-resisting and corrosion resistance performance, and be used in a wide range of applications. It is a major direction for the development of Honyu Wear-Resistant New Materials in the future.
○ Aisino Corporation launches stock ownership incentive plan
------
Aisino Corporation (600271.SH) proposes to grant incentive members with no more than 17 million restrictive shares at 13.47 yuan per share. The unlocking condition is, based on the average revenue from 2013 to 2015, the CGAR per year for the next three years will be no less than 20 percent.
○ Dynavolt Renewable Energy Technology signed big order of new energy project
------
Guangdong Dynavolt Renewable Energy Technology Co., Ltd. (002684.SZ) has signed a framework agreement with Yicheng government on new energy project investment and cooperation. According to the agreement, it will build 600 MWp photovoltaic power generation project, 200 MW wind power electricity generation project and 200 MWH Energy storage power station in phases within five years from 2016 to 2020. The total investment will be 5.8 billion yuan. At the same time, the company has also signed a contract with Yicheng government on invest in the construction of 5GWH battery project with total investment of no less than 3 billion yuan.
○ Senior management increase shareholding in Orient Zirconic Ind Sci and Tech
------
Huang Chaohua, executive vice president Guangdong Orient Zirconic Ind Sci and Tech Co., Ltd. (002167.SZ) increased holding 540,000 shares of the company on Nov. 10.Jiang Shengxin, party acting in concert with actual controller of Zhejiang Jiaxin Silk Corp., Ltd. (002404.SZ), has increased holding 3.05 million shares of the company from Nov. 3 to Nov. 9. Actual controller of Shenzhen O-film Tech Co., Ltd. (002456.SZ) on Nov. 10 increased over 50,000 shares of the company, and plans to increase no more than 100 million worth of shares of the company in the next six months.
○ Debt-for-equity swap of 5 billion yuan of the controlling shareholders of Yunnan Tin Co., Ltd. (000960.SZ) will be implemented at the year-end. It will significantly reduce the financial cost of Yunnan Tin.
[Trading Alarm]
○ Tesiro Jewelry and Jingce Electronic Technology to conduct IPOs on Nov. 11
------
Tesiro Jewelry Co., Ltd. (732900.SZ) will offer for subscription at 14.25 yuan per share, and the upper limit for each applicant is 24,000 shares. The company is primarily engaged in jewelries. Wuhan Jingce Electronic Technology Co., Ltd. (300567.SZ) will offer for subscription at 19.92 yuan per share, and the upper limit for each applicant is 20,000 shares. The company is engaged in panel display detection system.
TOP
○ China Hi-Tech to reorganize with Sinomach, central enterprises consolidation speeds up
○ Molybdenum concentrates price surges nearly 40 pct this year and keeps surging
○ "Double conservation" action plan on water resource issued, water-saving irrigation and sewage treatment companies confronted with opportunities
○ Promoting private enterprises' participation of military products, Honyu Wear-Resistant New Materials sign PIP technology research agreement
[SSN Focus]
○ China Hi-Tech to reorganize with Sinomach, central enterprises consolidation speeds up
------
Jingwei Textile Machinery Company Limited (000666.SZ) and Kama Co., Ltd. (900953) announced that China Hi-Tech Group Corporation and Sinomach, the actual controllers of the two companies, signed a reorganization agreement on Nov. 10. The entire property rights of China Hi-Tech will be transferred to Sinomach for free and China Hi-Tech will become a wholly-owned subsidiary of Sinomach. The move will strengthen the core ability of the main businesses of the two companies and promote business resources coordination and sharing. China Hi-Tech has conducted asset consolidations in recent years. The controlling rights in Huaxun Fangzhou Co., Ltd. (000687.SZ, formerly known as Swan Fiber Co., Ltd.) and Chtc Helon Co., Ltd. (000677.SZ), the two listed companies previously under it, have been transferred to private enterprises.
Comment: Sinomach is the biggest central enterprise in Chinese machinery industry with complete industrial chains. The machinery business is also one of the main business sectors of China Hi-Tech. The State-owned Assets Supervision and Administration Commission (SASAC) proposed that the number of central enterprises will be reduced to less than 100 this year. The number of central enterprises is 102 after China Hi-Tech was transferred into Sinomach. The consolidation will speed up by the year-end. CITIC Securities Company Limited (06030.HK; 600030.SH) believes that the central enterprise consolidation will be conducted in three ways: firstly, the merger in construction and other industries; secondly, the consolidation in the upper- and down-stream of the coal, power and metallurgy industries; thirdly, specialization in airfreight and other industries.
[SSN Selection]
○ The State Council released a circular on Nov. 10, requiring promoting the new round of pilots on free trade zones.
○ Based on the statistics of the China Association of Automobile Manufacturers, the sales of new energy vehicles increased 8.1 percent year on year in October. It is reported that the subsidy policies on new energy will be introduced by the end of the year.
○ The National Development and Reform Commission announced that it will deregulate the prices of gas for fertilizers from Nov. 10. It is another key measure in the reform of the pricing of natural gas.
○ The statistics of the China Banking Regulatory Commission show that the non-performing loan ratio of commercial banks at the end of the third quarter increased 0.01 percent from the end of the previous quarter. Large banks saw significant improvements.
○ The People's Procuratorate of Qingdao City institute a public prosecution against Xu Xiang and the chairmen and actual controllers of relevant listed companies for being suspected in manipulating the securities market on Nov. 10.
TOP
[Industry Information]
○ Molybdenum concentrates price surges nearly 40 pct this year and keeps surging
------
SSN learnt that the price of molybdenum concentrates rose on Nov. 10. The price of 45 percent molybdenum concentrate hiked 10 yuan/tonne. Statistics show that the price of molybdenum concentrates increased by 8 percent in recent month. It has surged 38 percent this year. The prices of molybdenum oxide and ferromolybdenum also jumped significantly. It is reported that the molybdenum concentrate market saw active trading and downstream factories are actively procuring. Domestic mines saw tight spot products and sufficient orders and the transaction prices increased. The dominant price of over 40 percent molybdenum concentrates reached above 1,000 yuan/tonne. In addition, the surging ferromolybdenum price in international markets also boosted domestic enterprises.
Comment: The prices of steel materials have been recovering this year and the output of crude steel also surged. Molybdenum is a key raw material for steel materials. In addition, the increasing demand in the high-speed railway, nuclear power, maritime equipment and other high-end industries will promote the molybdenum consumption in the long term. The recovery in the downstream demands will improve the profitability of the molybdenum concentrate and molybdenum products industries. Jinduicheng Molybdenum Co., Ltd. (601958.SH), China Molybdenum Co., Ltd. (03993.HK; 603993.SH) and other industrial leaders own advantages in the whole industry and will benefit more from the performance recovery caused by the surging prices.
TOP
○ "Double conservation" action plan on water resource issued, water-saving irrigation and sewage treatment companies confronted with opportunities
------
The Ministry of Water Resources (MWR) and the National Development and Reform Commission recently issued Double Conservation Plan on Total Amount and Intensity of Water Consumption during the 13th Five-Year Period recently, which proposed that the total water consumption nationwide should be limited within in 670 billion cubic meters by 2020. The water consumption amount and of 10,000 yuan GDP and 10,000 yuan industrial added value should be reduced by 23 percent and 20 percent from that of 2015; the average agricultural irrigation water consumption per Mu should be decreased significantly, and the effective utilization coefficients of irrigation water should be improved by more than 0.55; steadily push forward water right system construction; coordinate and carry forward water right transaction platform construction.
Comment: the plan explicitly set out the water conservation targets in industrial and agricultural fields. It will bring opportunities for relevant enterprises engaged in water-saving irrigation, sewage treatment and recycling and sponge city construction. Dayu Water-saving Group Co., Ltd. (300021.SZ) is involved in farmland water conservation projects and contract water-saving management; Sichuan Scimee Sci. ＆ Tech. Co., Ltd. (300425.SZ) is engaged in magnetic separation water purification technology, which could be used for coal mine water treatment and black and odorous water treatment. With the promotion of water right transaction, institutions are optimistic that sewage operation enterprise with national deployment will benefit.
TOP
[Announcement Interpretation]
○Promoting private enterprises' participation of military products, Honyu Wear-Resistant New Materials signs PIP technology research agreement
------
Honyu Wear-Resistant New Materials Co., Ltd. (300345.SZ) recently entered into "intention agreement on PIP technology application research for a new type of weapon" with a military research institute. It is the beginning for the company to participate in major scientific project of a research institute, indicating that the company's PIP technology has made a great step forward in the participation of military products. PIP technology could provide surface peening treatment for various metal parts, and enhance the wear-resisting and corrosion resistance performance, and be used in a wide range of applications. It is a major direction for the development of Honyu Wear-Resistant New Materials in the future.
○ Aisino Corporation launches stock ownership incentive plan
------
Aisino Corporation (600271.SH) proposes to grant incentive members with no more than 17 million restrictive shares at 13.47 yuan per share. The unlocking condition is, based on the average revenue from 2013 to 2015, the CGAR per year for the next three years will be no less than 20 percent.
○ Dynavolt Renewable Energy Technology signed big order of new energy project
------
Guangdong Dynavolt Renewable Energy Technology Co., Ltd. (002684.SZ) has signed a framework agreement with Yicheng government on new energy project investment and cooperation. According to the agreement, it will build 600 MWp photovoltaic power generation project, 200 MW wind power electricity generation project and 200 MWH Energy storage power station in phases within five years from 2016 to 2020. The total investment will be 5.8 billion yuan. At the same time, the company has also signed a contract with Yicheng government on invest in the construction of 5GWH battery project with total investment of no less than 3 billion yuan.
○ Senior management increase shareholding in Orient Zirconic Ind Sci and Tech
------
Huang Chaohua, executive vice president Guangdong Orient Zirconic Ind Sci and Tech Co., Ltd. (002167.SZ) increased holding 540,000 shares of the company on Nov. 10.Jiang Shengxin, party acting in concert with actual controller of Zhejiang Jiaxin Silk Corp., Ltd. (002404.SZ), has increased holding 3.05 million shares of the company from Nov. 3 to Nov. 9. Actual controller of Shenzhen O-film Tech Co., Ltd. (002456.SZ) on Nov. 10 increased over 50,000 shares of the company, and plans to increase no more than 100 million worth of shares of the company in the next six months.
○ Debt-for-equity swap of 5 billion yuan of the controlling shareholders of Yunnan Tin Co., Ltd. (000960.SZ) will be implemented at the year-end. It will significantly reduce the financial cost of Yunnan Tin.
[Trading Alarm]
○ Tesiro Jewelry and Jingce Electronic Technology to conduct IPOs on Nov. 11
------
Tesiro Jewelry Co., Ltd. (732900.SZ) will offer for subscription at 14.25 yuan per share, and the upper limit for each applicant is 24,000 shares. The company is primarily engaged in jewelries. Wuhan Jingce Electronic Technology Co., Ltd. (300567.SZ) will offer for subscription at 19.92 yuan per share, and the upper limit for each applicant is 20,000 shares. The company is engaged in panel display detection system.
TOP
Latest comments