[Today's Guide]
○1st batch of schemes for high share conversion and dividend announced, sub-new stocks see high possibility in share conversion and dividend
○Shaanxi promotes catch-up and outdoing actions, local SOEs reform to accelerate
○Controlling shareholder of Xinjiang Urban Construction changes, Hakim Unique Internet acquire game company
○Huafon Microfibre enters mobile payment field, WELLE Environmental to acquire two environment-friendly enterprises
[SSN Focus]
○1st batch of schemes for high share conversion and dividend announced, sub-new stocks see high possibility in share conversion and dividend
------
On Nov. 17 evening, the controlling shareholders and actual controllers of some listed companies propose schemes for high share conversion and dividend. Yorhe Fluid Intelligent Control Co., Ltd. (002795.SZ) proposes a 10-for-10 conversion of capital surplus into shares combined with 5 yuan dividend for every 10 shares, while Guangdong Sky Dragon Printing Ink Group Co., Ltd. (300063.SZ) proposes a 15-for-10 conversion of capital surplus into shares combined with 0.5 yuan dividend for every 10 shares. Yorhe Fluid Intelligent Control claims that the shares are still in lock-up period now and there is no plan for reducing shareholding, while multiple shareholders and top management of Sky Dragon Printing Ink propose to sell no more than 47.12 million shares of the company in next 6 months.
Comment: High share conversion and dividend usually send positive signals that the company will maintain high performance growth to the market and improve stocks' liquidity in the secondary market. According to statistics made by CITIC Securities Co., Ltd., sub-new stocks getting listed in less than one year see a possibility of 46.83 percent in announcing high share conversion and dividend in annual reports in recent years. Stocks with higher capital reserves per share and smaller share capital see higher possibility in announcing such thing. For stocks that have completed private placement within the year, there is still a possibility of 27.1 percent for them to propose high share conversion and dividend. Besides the period when the schemes are announced, relevant stocks are also favored by the market around the ex-right date when the schemes are officially implemented.
TOP
○Shaanxi promotes catch-up and outdoing actions, local SOEs reform to accelerate
------
SSN learnt that the State-owned Assets Supervision and Administration Commission of Shaanxi province called provincial enterprises together to hold a meeting on Nov. 16 morning. The meeting listened to enterprises' opinions about the catch-up and outdoing action plan formulated by the SASAC of Shaanxi province. It is required on the meeting that the enterprises should set up their own leadership teams and work institutions for advancing the catch-up and outdoing actions; these enterprises should sort out their own advantages and weakness points, and submit detailed work schemes to the provincial SASAC before Dec. 10.
Comment: Both the number and scale of state-owned enterprises (SOEs) in western provinces like Shaanxi lag behind that of eastern provinces, but it also suggests the potential of SOEs reform. Shaanxi has proposed that by 2020, the asset securitization rate of provincial enterprises reaches around 40 percent. Under the pursuit of making SOEs stronger, better and bigger, exogenous growth and endogenous growth of local SOEs might be accelerated. Research reports by securities companies point out that Shaanxi Fenghuo Electronics Co., Ltd. (000561.SZ), principally engaged in civil and military telecommunication products, sees high expectation on asset injection from its group; Qinchuan Machine Tool ＆ Tool Group Share Co., Ltd. (000837.SZ) is actively upgrading machine tool products. Its reducer products are still under progress; Baoji Titanium Industry Co., Ltd. (600456.SH), engaged in titanium alloy products, benefits from the development of the aerospace industry.
[SSN Selection]
○The National Development and Reform Commission (NDRC) recently released the 13th five-year plan for rural economic development. The proportion of moderate scale management like land turnover and contracting will be increased from 30 percent to 40 percent.
○Yang Chuantang, minister of transport, indicated on the World Internet Conference on Nov. 17 that traffic data connected with public services will be made public in an orderly way.
○Relevant officials from the Shanghai Futures Exchange have responded to the rumor of "temporarily suspending the trading of black commodity futures in night session". It is claimed that comprehensive evaluation about the time adjustment of night session in the first half and the effects of recent risk management measures is underway.
○SSN learnt that China Insurance Regulatory Commission has internally released a notice requiring all personal insurance companies to investigate risks concerning insurance that will expire and surrender in 2017.
○11 listed companies with Yonyou Network Technology Co., Ltd. (600588.SH) included propose to set up Beijing Zhongguancun Bank which will become the first private bank in Beijing.
[Industry Information]
○Policies greatly support construction of sewage treatment facilities, enterprises engaged in engineering pipelines to embrace opportunities
------
The general offices of the National Development and Reform Commission (NDRC) and the Ministry of Housing and Urban-Rural Development (MOHURD) recently released the draft of the 13th five-year plan for national urban sewage treatment and recycling facility construction. It is proposed that by 2020, the sewage treatment rate reaches 95 percent in cities, 90 percent in county towns and 70 percent in designated towns; the harmless treatment rate of sludge reaches 90 percent in cities, 70 percent in county towns and 50 percent in designated towns. Tasks during the 13th five-year plan period include newly adding 134,400 kilometers sewage pipelines and sewage treatment facilities processing 48.9 million cubic meters per day.
Comment: Now the construction of China's sewage treatment facilities still sees problems like unbalanced regional distribution and lagging construction of supporting pipelines. Along with the advancing of the construction of sewage treatment facilities and the promotion of Public-Private-Partnership (PPP) model, companies engaged in relevant engineering construction and pipeline production will see more orders. Chengdu Xingrong Environment Co., Ltd. (000598.SZ), engaged in landfill leachate and the treatment of sewage and sludge, might undertake PPP projects related to environmental protection by resorting to local financing platforms; Xingyuan Environment Technology Co., Ltd. (300266.SZ) has made comprehensive arrangement in the industrial chain of water treatment; Xinjiang Guotong Pipeline Co., Ltd. (002205.SZ) is involved in the production of water transmission pipelines and the PPP projects related to sponge city.
TOP
[Announcement Interpretation]
○Controlling shareholder of Xinjiang Urban Construction changes to acquire Zhuolang Intelligent Manufacturing
------
Xinjiang Urban Construction (Group) Co., Ltd. (600545.SH) plans to acquire 100 percent equity of Jiangsu Zhuolang Intelligent Manufacturing Co., Ltd. through asset swap and issuing shares at a price of 6.44 yuan per share by private placement. Total assets value of the latter is estimated to be 10.3 billion yuan. Part assets acquired by the counterparty Jiangsu Jinsheng Industry Co., Ltd. will be undertaken by a state-owned asset company or the third party. As part of the consideration, the state-owned asset company transfers its 22.11 percent (equivalent 149 million shares) equity in Xinjiang Urban Construction to Jinsheng Industry and the total value of the transferred shares stands at 2.213 billion yuan.
With the deal done, Jinsheng Industry will become controlling shareholder of the listed company. Zhuolang Intelligent Manufacturing is engaged in R＆D, production and sales of complete equipment and core components of intelligentized textile.
○Hakim Unique Internet acquire game company
------
Hakim Unique Internet Co., Ltd. (300300.SZ) plans to acquire 100 percent equity of Shanghai Lingyu Network Technology Co., Ltd. at a cost of 1.3 billion yuan by issuing shares at a price of 23.39 yuan per share through private placement and paying in cash. Besides, the company will raise no more than 660 million yuan as supporting funds. Lingyu Network Technology is specialized in R＆D of web game and mobile online game. The counterparty promises that the net profit after extraordinary gains and losses of Lingyu Network Technology will not be less than 118 million yuan, 153 million yuan and 193 million yuan in next three years respectively.
TOP
○Huafon Microfibre enters mobile payment field
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Huafon Microfibre (Shanghai) Co., Ltd. (300180.SZ) plans to buy 100 percent stake of Shenzhen SwiftPass Technology Co., Ltd. at a cost of 1.8 billion yuan by issuing shares at a price of 12.76 yuan per share through private placement and paying in cash. In addition, the company plans to raise 570 million yuan by issuing shares at a price of 14.08 yuan per share through private placement. SwiftPass Technology is a server software technology server and added value service provider in mobile payment field, and is a partner of WeChat payment, Alipay and other third-party payment companies. The counterparty promises that net profit after extraordinary gains and losses of SwiftPass Technology will not be less than 80 million yuan, 120 million yuan and 180 million yuan in next three years respectively.
○WELLE Environmental to acquire two environment-friendly enterprises
------
Jiangsu WELLE Environmental Co., Ltd. (300190.SZ) plans to pay 600 million yuan and 250 million yuan to buy 100 percent equity of Suzhou Hanfeng Technology Development Co., Ltd. and Nanjing Duyue Refrigeration Equipment Co., Ltd. respectively by issuing shares at a price of 15.9 yuan per share and paying in cash. The counterparty promises that if WELLE Environmental makes additional investment in Hanfeng Technology Development and pays registered capital for Duyue Refrigeration Equipment, net profit after extraordinary gains and losses of Hanfeng Technology Development will not be less than 50 million yuan, 80 million yuan and 118 million yuan, and that of Duyue Refrigeration Equipment will not be less than 20 million yuan, 31 million yuan and 44 million yuan in next three years respectively.
Hanfeng Technology Development is mainly engaged in industrial energy saving and recovery of overbottom pressure and heat, and Duyue Refrigeration Equipment is specialized in R＆D, manufacturing and sales of oil and gas recovery equipment. WELLE Environmental indicates that the two companies are complementary to itself in terms of clients and businesses.
○Leking Wellness develops in health media marketing
------
Leking Wellness Co., Ltd. (300247.SZ) plans to acquire 100 percent equity of Beijing Wide Central Joint Media Investment Co., Ltd. This transaction aims to terminate VIE agreement, dismantle VIE structure and finish asset reorganization. Wide Central Joint Media is a provider of all media marketing and healthy product service. Its media partners include CCTV and many provincial satellite TVs. Its net profit in the first half of this year records 47.51 million yuan.
○Furui Special Equipment develops hydrogen energy, targeting fuel-cell logistics vehicle
------
Zhangjiagang Furui Special Equipment Co., Ltd. (300228.SZ) signed framework agreement with PlugPower and a special vehicle company of China, planning to conduct strategic cooperation in fuel-cell logistics vehicle field and aiming to promote 13,500 fuel-cell commercial vehicles in three years. PlugPower is a international famous enterprise in hydrogen cell and is experienced in integrated design of fuel cell, hydrogenation technology and equipment and its successful operation in North America.
○Sunward Intelligent Equipment sees shareholding increase by controlling shareholder
------
Controlling shareholder of Sunward Intelligent Equipment Co., Ltd. (002097.SZ) gained 37.65 million shares (accounting for 4.98 percent of total share capital of the company) at an average price of 9.6 yuan per share through transfer by block trade on Nov. 17. The latest share price of the company is 9.77 yuan per share.
[Financial Reports Express]
○Annual profit of Shenzhen Tatfook Technology Co., Ltd. (300134.SZ) is expected to rise by 108-137 percent and its net profit is predicted to hike by 4.43 times in the fourth quarter.
[Trading Alarms]
○NAR Industrial and Zhongtong Guomai Communication to launch IPOs on Nov. 18
------
Shanghai NAR Industrial Co., Ltd. is going to launch IPO at a price of 10.17 yuan per share with upper limit of 10,000 shares for single account. The company is engaged in digital printing material. Zhongtong Guomai Communication Co., Ltd. is going to launch IPO at a price of 10.34 yuan per share with upper limit of 6,000 shares for single account. The company is specialized in communication network engineering.
TOP
○1st batch of schemes for high share conversion and dividend announced, sub-new stocks see high possibility in share conversion and dividend
○Shaanxi promotes catch-up and outdoing actions, local SOEs reform to accelerate
○Controlling shareholder of Xinjiang Urban Construction changes, Hakim Unique Internet acquire game company
○Huafon Microfibre enters mobile payment field, WELLE Environmental to acquire two environment-friendly enterprises
[SSN Focus]
○1st batch of schemes for high share conversion and dividend announced, sub-new stocks see high possibility in share conversion and dividend
------
On Nov. 17 evening, the controlling shareholders and actual controllers of some listed companies propose schemes for high share conversion and dividend. Yorhe Fluid Intelligent Control Co., Ltd. (002795.SZ) proposes a 10-for-10 conversion of capital surplus into shares combined with 5 yuan dividend for every 10 shares, while Guangdong Sky Dragon Printing Ink Group Co., Ltd. (300063.SZ) proposes a 15-for-10 conversion of capital surplus into shares combined with 0.5 yuan dividend for every 10 shares. Yorhe Fluid Intelligent Control claims that the shares are still in lock-up period now and there is no plan for reducing shareholding, while multiple shareholders and top management of Sky Dragon Printing Ink propose to sell no more than 47.12 million shares of the company in next 6 months.
Comment: High share conversion and dividend usually send positive signals that the company will maintain high performance growth to the market and improve stocks' liquidity in the secondary market. According to statistics made by CITIC Securities Co., Ltd., sub-new stocks getting listed in less than one year see a possibility of 46.83 percent in announcing high share conversion and dividend in annual reports in recent years. Stocks with higher capital reserves per share and smaller share capital see higher possibility in announcing such thing. For stocks that have completed private placement within the year, there is still a possibility of 27.1 percent for them to propose high share conversion and dividend. Besides the period when the schemes are announced, relevant stocks are also favored by the market around the ex-right date when the schemes are officially implemented.
TOP
○Shaanxi promotes catch-up and outdoing actions, local SOEs reform to accelerate
------
SSN learnt that the State-owned Assets Supervision and Administration Commission of Shaanxi province called provincial enterprises together to hold a meeting on Nov. 16 morning. The meeting listened to enterprises' opinions about the catch-up and outdoing action plan formulated by the SASAC of Shaanxi province. It is required on the meeting that the enterprises should set up their own leadership teams and work institutions for advancing the catch-up and outdoing actions; these enterprises should sort out their own advantages and weakness points, and submit detailed work schemes to the provincial SASAC before Dec. 10.
Comment: Both the number and scale of state-owned enterprises (SOEs) in western provinces like Shaanxi lag behind that of eastern provinces, but it also suggests the potential of SOEs reform. Shaanxi has proposed that by 2020, the asset securitization rate of provincial enterprises reaches around 40 percent. Under the pursuit of making SOEs stronger, better and bigger, exogenous growth and endogenous growth of local SOEs might be accelerated. Research reports by securities companies point out that Shaanxi Fenghuo Electronics Co., Ltd. (000561.SZ), principally engaged in civil and military telecommunication products, sees high expectation on asset injection from its group; Qinchuan Machine Tool ＆ Tool Group Share Co., Ltd. (000837.SZ) is actively upgrading machine tool products. Its reducer products are still under progress; Baoji Titanium Industry Co., Ltd. (600456.SH), engaged in titanium alloy products, benefits from the development of the aerospace industry.
[SSN Selection]
○The National Development and Reform Commission (NDRC) recently released the 13th five-year plan for rural economic development. The proportion of moderate scale management like land turnover and contracting will be increased from 30 percent to 40 percent.
○Yang Chuantang, minister of transport, indicated on the World Internet Conference on Nov. 17 that traffic data connected with public services will be made public in an orderly way.
○Relevant officials from the Shanghai Futures Exchange have responded to the rumor of "temporarily suspending the trading of black commodity futures in night session". It is claimed that comprehensive evaluation about the time adjustment of night session in the first half and the effects of recent risk management measures is underway.
○SSN learnt that China Insurance Regulatory Commission has internally released a notice requiring all personal insurance companies to investigate risks concerning insurance that will expire and surrender in 2017.
○11 listed companies with Yonyou Network Technology Co., Ltd. (600588.SH) included propose to set up Beijing Zhongguancun Bank which will become the first private bank in Beijing.
[Industry Information]
○Policies greatly support construction of sewage treatment facilities, enterprises engaged in engineering pipelines to embrace opportunities
------
The general offices of the National Development and Reform Commission (NDRC) and the Ministry of Housing and Urban-Rural Development (MOHURD) recently released the draft of the 13th five-year plan for national urban sewage treatment and recycling facility construction. It is proposed that by 2020, the sewage treatment rate reaches 95 percent in cities, 90 percent in county towns and 70 percent in designated towns; the harmless treatment rate of sludge reaches 90 percent in cities, 70 percent in county towns and 50 percent in designated towns. Tasks during the 13th five-year plan period include newly adding 134,400 kilometers sewage pipelines and sewage treatment facilities processing 48.9 million cubic meters per day.
Comment: Now the construction of China's sewage treatment facilities still sees problems like unbalanced regional distribution and lagging construction of supporting pipelines. Along with the advancing of the construction of sewage treatment facilities and the promotion of Public-Private-Partnership (PPP) model, companies engaged in relevant engineering construction and pipeline production will see more orders. Chengdu Xingrong Environment Co., Ltd. (000598.SZ), engaged in landfill leachate and the treatment of sewage and sludge, might undertake PPP projects related to environmental protection by resorting to local financing platforms; Xingyuan Environment Technology Co., Ltd. (300266.SZ) has made comprehensive arrangement in the industrial chain of water treatment; Xinjiang Guotong Pipeline Co., Ltd. (002205.SZ) is involved in the production of water transmission pipelines and the PPP projects related to sponge city.
TOP
[Announcement Interpretation]
○Controlling shareholder of Xinjiang Urban Construction changes to acquire Zhuolang Intelligent Manufacturing
------
Xinjiang Urban Construction (Group) Co., Ltd. (600545.SH) plans to acquire 100 percent equity of Jiangsu Zhuolang Intelligent Manufacturing Co., Ltd. through asset swap and issuing shares at a price of 6.44 yuan per share by private placement. Total assets value of the latter is estimated to be 10.3 billion yuan. Part assets acquired by the counterparty Jiangsu Jinsheng Industry Co., Ltd. will be undertaken by a state-owned asset company or the third party. As part of the consideration, the state-owned asset company transfers its 22.11 percent (equivalent 149 million shares) equity in Xinjiang Urban Construction to Jinsheng Industry and the total value of the transferred shares stands at 2.213 billion yuan.
With the deal done, Jinsheng Industry will become controlling shareholder of the listed company. Zhuolang Intelligent Manufacturing is engaged in R＆D, production and sales of complete equipment and core components of intelligentized textile.
○Hakim Unique Internet acquire game company
------
Hakim Unique Internet Co., Ltd. (300300.SZ) plans to acquire 100 percent equity of Shanghai Lingyu Network Technology Co., Ltd. at a cost of 1.3 billion yuan by issuing shares at a price of 23.39 yuan per share through private placement and paying in cash. Besides, the company will raise no more than 660 million yuan as supporting funds. Lingyu Network Technology is specialized in R＆D of web game and mobile online game. The counterparty promises that the net profit after extraordinary gains and losses of Lingyu Network Technology will not be less than 118 million yuan, 153 million yuan and 193 million yuan in next three years respectively.
TOP
○Huafon Microfibre enters mobile payment field
------
Huafon Microfibre (Shanghai) Co., Ltd. (300180.SZ) plans to buy 100 percent stake of Shenzhen SwiftPass Technology Co., Ltd. at a cost of 1.8 billion yuan by issuing shares at a price of 12.76 yuan per share through private placement and paying in cash. In addition, the company plans to raise 570 million yuan by issuing shares at a price of 14.08 yuan per share through private placement. SwiftPass Technology is a server software technology server and added value service provider in mobile payment field, and is a partner of WeChat payment, Alipay and other third-party payment companies. The counterparty promises that net profit after extraordinary gains and losses of SwiftPass Technology will not be less than 80 million yuan, 120 million yuan and 180 million yuan in next three years respectively.
○WELLE Environmental to acquire two environment-friendly enterprises
------
Jiangsu WELLE Environmental Co., Ltd. (300190.SZ) plans to pay 600 million yuan and 250 million yuan to buy 100 percent equity of Suzhou Hanfeng Technology Development Co., Ltd. and Nanjing Duyue Refrigeration Equipment Co., Ltd. respectively by issuing shares at a price of 15.9 yuan per share and paying in cash. The counterparty promises that if WELLE Environmental makes additional investment in Hanfeng Technology Development and pays registered capital for Duyue Refrigeration Equipment, net profit after extraordinary gains and losses of Hanfeng Technology Development will not be less than 50 million yuan, 80 million yuan and 118 million yuan, and that of Duyue Refrigeration Equipment will not be less than 20 million yuan, 31 million yuan and 44 million yuan in next three years respectively.
Hanfeng Technology Development is mainly engaged in industrial energy saving and recovery of overbottom pressure and heat, and Duyue Refrigeration Equipment is specialized in R＆D, manufacturing and sales of oil and gas recovery equipment. WELLE Environmental indicates that the two companies are complementary to itself in terms of clients and businesses.
○Leking Wellness develops in health media marketing
------
Leking Wellness Co., Ltd. (300247.SZ) plans to acquire 100 percent equity of Beijing Wide Central Joint Media Investment Co., Ltd. This transaction aims to terminate VIE agreement, dismantle VIE structure and finish asset reorganization. Wide Central Joint Media is a provider of all media marketing and healthy product service. Its media partners include CCTV and many provincial satellite TVs. Its net profit in the first half of this year records 47.51 million yuan.
○Furui Special Equipment develops hydrogen energy, targeting fuel-cell logistics vehicle
------
Zhangjiagang Furui Special Equipment Co., Ltd. (300228.SZ) signed framework agreement with PlugPower and a special vehicle company of China, planning to conduct strategic cooperation in fuel-cell logistics vehicle field and aiming to promote 13,500 fuel-cell commercial vehicles in three years. PlugPower is a international famous enterprise in hydrogen cell and is experienced in integrated design of fuel cell, hydrogenation technology and equipment and its successful operation in North America.
○Sunward Intelligent Equipment sees shareholding increase by controlling shareholder
------
Controlling shareholder of Sunward Intelligent Equipment Co., Ltd. (002097.SZ) gained 37.65 million shares (accounting for 4.98 percent of total share capital of the company) at an average price of 9.6 yuan per share through transfer by block trade on Nov. 17. The latest share price of the company is 9.77 yuan per share.
[Financial Reports Express]
○Annual profit of Shenzhen Tatfook Technology Co., Ltd. (300134.SZ) is expected to rise by 108-137 percent and its net profit is predicted to hike by 4.43 times in the fourth quarter.
[Trading Alarms]
○NAR Industrial and Zhongtong Guomai Communication to launch IPOs on Nov. 18
------
Shanghai NAR Industrial Co., Ltd. is going to launch IPO at a price of 10.17 yuan per share with upper limit of 10,000 shares for single account. The company is engaged in digital printing material. Zhongtong Guomai Communication Co., Ltd. is going to launch IPO at a price of 10.34 yuan per share with upper limit of 6,000 shares for single account. The company is specialized in communication network engineering.
TOP
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