[Today's Guide]
○ CSRC supports space information corridor, boosting construction of "Belt and Road"
○ New car models of unmanned driving appeared frequently, supporting technologies of industry becomes increasingly completed
○ Nanyang Technology to develop UAVs, CASC to become controller
○ Yintai Resources to acquire gold mines, Boton Technology to develop game through private placement
[SSN Focus]
○ CSRC supports space information corridor, boosting "Belt and Road" initiative
------
The website of the National Development and Reform Commission (NDRC) on Nov. 23 shows that the NDRC has recently issued "Instructions on Accelerating the Construction and Application of Space Information Corridor for the 'Belt and Road' Initiative", proposing to basically build a "Belt and Road" space information corridor that focuses on Southeast Asia, South Asia, West Asia, Central Asia and North Africa, as well as covers the Oceania, Mid-East Europe and Africa, to provide well-equipped facilities and high-efficient services. The Instruction also proposes to accelerate the construction of national satellite system, enhance cooperation with international satellite systems, and actively promote the development of commercial satellite system.
Comment: to promote the construction and application of the space information corridor is expected to become an important measure for the construction of the "Belt and Road". During this process, some domestic enterprises on this industry chain will likely to expand into a broader international market by virtue of their own advantages. Zhuhai Orbita Control Engineering Co., Ltd. (300053.SZ) has determined satellite business as the development strategy, and the company is building "satellite space information system" and promoting the construction of "remote sensing micro satellite constellation project"; Beijing Xinwei Technology Group Co., Ltd. (600485.SH) has built strategic cooperation with China Academy of Space Technology on low earth orbit satellite field, and the company is in the process of acquiring Israel communication satellite operating company SCC.
[SSN Selection]
○ Vice chairman of the China Insurance Regulatory Commission (CIRC) Huang Hong on Nov. 23 indicated that a minority of insurance companies are radical in business operation. The CIRC will hold fast to the bottom line of preventing systemic and regional risks.
○ The China Banking Regulatory Commission (CBRC) on Nov. 23 issued an exposure draft, proposing to expand the business scope of the definition of commercial banks' off-balance sheet business. Analyst says that the new rule does not intend to tighten relevant business at a specific time-point.
○ The State-owned Assets Supervision and Administration Commission (SASAC) on Nov. 23 announced that China National Cotton Reserve Corporation will be overall merged with Sino Grain Co., Ltd. and become a wholly owned subsidiary of the latter. Up till now, the number of central state-owned enterprises has declined to 102.
○ The Ministry of Environment Protection published the first 25 typical environmental inspection cases that have been regulated by the central government, involving illegal pollution discharge in the cement and chemical fertilizer industries.
○ The proposals of Beijing Shengtong Printing Co., Ltd. (002599.SZ) and Zhengzhou Coal Mining Machinery Group Co., Ltd. (601717.SH) to purchase assets through share issuance have been approved by the China Securities Regulatory Commission (CSRC) unconditionally, and the same matter of Pengxin International Mining Co., Ltd. (000490.SZ) has been approved by the CSRC conditionally.
TOP
[Industry Information]
○ New car models of unmanned driving appeared frequently, supporting technologies of industry becomes increasingly completed
------
Beiqi Foton released China's first unmanned driving lorry in Shanghai recently, which is expected to realize mass production in 2025. Coincidently, at the latest Los Angeles auto show held not long ago, the South Korean car marker Hyundai also released it first generation IONIQ electric unmanned driving car model. The SSN learnt from the Telematics Industry Application Alliance that China has already started research and trial on automobile millimeter wave radar wireless technology and frequency division, and LTE-V wireless technology for the communication of intelligent transport vehicle is also in progress.
Comment: as more and more car makers started to deploy in the unmanned driving area, the intelligent development of vehicles has become a general trend. Research institution estimated that the compound growth rate of advanced driver assistance systems (ADAS) industry is expected to maintain at over 20 percent during the 13th Five-Year Period, and China's ADAS market is expected to reach 20 billion yuan by 2020. Sub-industries such as sensor, control system and navigation map will benefit.
TOP
[Announcement Interpretation]
○ Nanyang Technology to develop UAVs, CASC to become controller
------
The 100 percent equities of Taizhou Jintou Aerospace Co., Ltd., the shareholder of Zhejiang Nanyang Technology Co., Ltd. (002389.SZ), have been transferred to China Academy of Aerospace Aerodynamics (CAAA) for free. In addition, Nanyang Technology proposes to acquire 100 percent equities of Rainbow and 84 percent equities of Shenfei held by CAAA and other parties with 3,145 million yuan by issuing shares at 13.18 yuan per share through private placement. It also proposes to raise supporting funds at the same price by issuing shares through private placement. The actual controller of the company will be China Aerospace Science and Technology Corporation (CASC) after the completion of the acquisitions.
The unmanned aerial vehicles (UAVs) developed by the subject company are mainly used for military purposes. The counterparty committed that the net profit after extraordinary items of Rainbow will be 128 million yuan, 185 million yuan and 241 million yuan in the following three years. The net profit of Shenfei will be 54.40 million yuan, 73.80 million yuan and 88.60 million yuan in the same period.
TOP
○ Yintai Resources to acquire gold mines
------
Yintai Resources Co., Ltd. (000975.SZ) plans to acquire 99.78 percent equities of Shanghai Shengwei with 4.5 billion yuan by issuing shares at 12.03 yuan per share through private placement. The company will fully control the equities of Shanghai Shengwei and obtain the equities in Chinese gold mines under Eldorado Gold (a Canadian multinational gold manufacturer and explorer), including the mining rights in three gold mines and the exploration rights in 10 gold mines. The counterparty committed that the total net profit of Dongan and Jingying gold mines owned by Shanghai Shengwei will be no less than 1,057 million yuan in the following three years.
○ Boton Technology to develop game through private placement
------
Wuxi Boton Technology Co., Ltd. (300031.SZ) intends to raise no more than 600 million yuan by issuing shares through private placement. The proceeds will be used in acquiring 24.1644 percent equities of Efun Co., Ltd., a game company, and supplementing the working capital. The company will hold 94.1644 percent equities of Efun after the acquisition.
○ Hengshun Zhongsheng signs big order
------
Qingdao Hengshun Zhongsheng Group Co., Ltd. (300208.SZ) signed the contract for the circulating fluidized bed (CFB) coal-fired power plant and the ancillary projects of the OPGI from the Philippines. The contracted amount is 423 million U.S. dollars, equivalent to approximately 2.9 billion yuan and representing 250 percent of the business revenue of last year.
○ Guangdong Macro Co., Ltd. (000533.SZ) proposes to transfer 100 percent equities of the gas appliance company with 745 million yuan to strip the kitchen and bathroom appliance business.
[Financial Reports Express]
○ Yunyi Electric and Doyin Pump Industry propose high share conversion and dividend
------
The controlling shareholder of Jiangsu Yunyi Electric Co., Ltd. (300304.SZ) proposes a 28-for-10 conversion of capital surplus into shares combined with 1 yuan dividend for every 10 shares according to its annual report. The controlling shareholder of Zhejiang Doyin Pump Industry Co., Ltd. (002793.SZ) proposes a 10-for-10 conversion of capital surplus into shares combined with 6 yuan dividend for every 10 shares according to its annual report.
[Trading Trends]
○ Two securities companies rosy about property capitals flowing into stock market in 2017
------
Shenwan ＆ Hongyuan Securities Co., Ltd. and CITIC Securities Company Limited (06030.HK; 600030.SH) held the annual strategy meeting on Nov. 23. They are rosy about the overall performance of the A-share market in 2017 and believe that the capitals from the property industry will be key incremental capitals in the A-share market in the following year. Shenwan ＆ Hongyuan Securities believes that the stock market and the property are likely to witness the see-saw effect in 2017 and the capitals for house purchase may flow into the stock market. CITIC Securities estimates that under the background of asset shortage, the new policies on the property will force more capitals out and the A-share market will benefit.
In addition, the premium of insurance companies will surge significantly. The A shares will be included in the MSCI index, which will also bring incremental capitals. However, institutes also remind that the recovery in the fourth quarter is closely related to the operation of insurance capitals in the year end. Investors should consider the influence of the cancellation of restrictions in the year end and early 2017.
[Trading Alarms]
○ T＆S Communications and Sanwei Conveying Equipment to conduct IPOs on Nov. 24
------
T＆S Communications Co., Ltd. (300570.SZ) issues shares at 20.59 yuan per share with an upper subscription limit of 11,500 shares for each account. The company is principally engaged in optical communication devices. Zhenjiang Sanwei Conveying Equipment Co., Ltd. (603033.SH) issues shares at 17.55 yuan per share with an upper subscription limit of 8,000 shares for each account. The company is principally engaged in rubber conveyer belts.
TOP
○ CSRC supports space information corridor, boosting construction of "Belt and Road"
○ New car models of unmanned driving appeared frequently, supporting technologies of industry becomes increasingly completed
○ Nanyang Technology to develop UAVs, CASC to become controller
○ Yintai Resources to acquire gold mines, Boton Technology to develop game through private placement
[SSN Focus]
○ CSRC supports space information corridor, boosting "Belt and Road" initiative
------
The website of the National Development and Reform Commission (NDRC) on Nov. 23 shows that the NDRC has recently issued "Instructions on Accelerating the Construction and Application of Space Information Corridor for the 'Belt and Road' Initiative", proposing to basically build a "Belt and Road" space information corridor that focuses on Southeast Asia, South Asia, West Asia, Central Asia and North Africa, as well as covers the Oceania, Mid-East Europe and Africa, to provide well-equipped facilities and high-efficient services. The Instruction also proposes to accelerate the construction of national satellite system, enhance cooperation with international satellite systems, and actively promote the development of commercial satellite system.
Comment: to promote the construction and application of the space information corridor is expected to become an important measure for the construction of the "Belt and Road". During this process, some domestic enterprises on this industry chain will likely to expand into a broader international market by virtue of their own advantages. Zhuhai Orbita Control Engineering Co., Ltd. (300053.SZ) has determined satellite business as the development strategy, and the company is building "satellite space information system" and promoting the construction of "remote sensing micro satellite constellation project"; Beijing Xinwei Technology Group Co., Ltd. (600485.SH) has built strategic cooperation with China Academy of Space Technology on low earth orbit satellite field, and the company is in the process of acquiring Israel communication satellite operating company SCC.
[SSN Selection]
○ Vice chairman of the China Insurance Regulatory Commission (CIRC) Huang Hong on Nov. 23 indicated that a minority of insurance companies are radical in business operation. The CIRC will hold fast to the bottom line of preventing systemic and regional risks.
○ The China Banking Regulatory Commission (CBRC) on Nov. 23 issued an exposure draft, proposing to expand the business scope of the definition of commercial banks' off-balance sheet business. Analyst says that the new rule does not intend to tighten relevant business at a specific time-point.
○ The State-owned Assets Supervision and Administration Commission (SASAC) on Nov. 23 announced that China National Cotton Reserve Corporation will be overall merged with Sino Grain Co., Ltd. and become a wholly owned subsidiary of the latter. Up till now, the number of central state-owned enterprises has declined to 102.
○ The Ministry of Environment Protection published the first 25 typical environmental inspection cases that have been regulated by the central government, involving illegal pollution discharge in the cement and chemical fertilizer industries.
○ The proposals of Beijing Shengtong Printing Co., Ltd. (002599.SZ) and Zhengzhou Coal Mining Machinery Group Co., Ltd. (601717.SH) to purchase assets through share issuance have been approved by the China Securities Regulatory Commission (CSRC) unconditionally, and the same matter of Pengxin International Mining Co., Ltd. (000490.SZ) has been approved by the CSRC conditionally.
TOP
[Industry Information]
○ New car models of unmanned driving appeared frequently, supporting technologies of industry becomes increasingly completed
------
Beiqi Foton released China's first unmanned driving lorry in Shanghai recently, which is expected to realize mass production in 2025. Coincidently, at the latest Los Angeles auto show held not long ago, the South Korean car marker Hyundai also released it first generation IONIQ electric unmanned driving car model. The SSN learnt from the Telematics Industry Application Alliance that China has already started research and trial on automobile millimeter wave radar wireless technology and frequency division, and LTE-V wireless technology for the communication of intelligent transport vehicle is also in progress.
Comment: as more and more car makers started to deploy in the unmanned driving area, the intelligent development of vehicles has become a general trend. Research institution estimated that the compound growth rate of advanced driver assistance systems (ADAS) industry is expected to maintain at over 20 percent during the 13th Five-Year Period, and China's ADAS market is expected to reach 20 billion yuan by 2020. Sub-industries such as sensor, control system and navigation map will benefit.
TOP
[Announcement Interpretation]
○ Nanyang Technology to develop UAVs, CASC to become controller
------
The 100 percent equities of Taizhou Jintou Aerospace Co., Ltd., the shareholder of Zhejiang Nanyang Technology Co., Ltd. (002389.SZ), have been transferred to China Academy of Aerospace Aerodynamics (CAAA) for free. In addition, Nanyang Technology proposes to acquire 100 percent equities of Rainbow and 84 percent equities of Shenfei held by CAAA and other parties with 3,145 million yuan by issuing shares at 13.18 yuan per share through private placement. It also proposes to raise supporting funds at the same price by issuing shares through private placement. The actual controller of the company will be China Aerospace Science and Technology Corporation (CASC) after the completion of the acquisitions.
The unmanned aerial vehicles (UAVs) developed by the subject company are mainly used for military purposes. The counterparty committed that the net profit after extraordinary items of Rainbow will be 128 million yuan, 185 million yuan and 241 million yuan in the following three years. The net profit of Shenfei will be 54.40 million yuan, 73.80 million yuan and 88.60 million yuan in the same period.
TOP
○ Yintai Resources to acquire gold mines
------
Yintai Resources Co., Ltd. (000975.SZ) plans to acquire 99.78 percent equities of Shanghai Shengwei with 4.5 billion yuan by issuing shares at 12.03 yuan per share through private placement. The company will fully control the equities of Shanghai Shengwei and obtain the equities in Chinese gold mines under Eldorado Gold (a Canadian multinational gold manufacturer and explorer), including the mining rights in three gold mines and the exploration rights in 10 gold mines. The counterparty committed that the total net profit of Dongan and Jingying gold mines owned by Shanghai Shengwei will be no less than 1,057 million yuan in the following three years.
○ Boton Technology to develop game through private placement
------
Wuxi Boton Technology Co., Ltd. (300031.SZ) intends to raise no more than 600 million yuan by issuing shares through private placement. The proceeds will be used in acquiring 24.1644 percent equities of Efun Co., Ltd., a game company, and supplementing the working capital. The company will hold 94.1644 percent equities of Efun after the acquisition.
○ Hengshun Zhongsheng signs big order
------
Qingdao Hengshun Zhongsheng Group Co., Ltd. (300208.SZ) signed the contract for the circulating fluidized bed (CFB) coal-fired power plant and the ancillary projects of the OPGI from the Philippines. The contracted amount is 423 million U.S. dollars, equivalent to approximately 2.9 billion yuan and representing 250 percent of the business revenue of last year.
○ Guangdong Macro Co., Ltd. (000533.SZ) proposes to transfer 100 percent equities of the gas appliance company with 745 million yuan to strip the kitchen and bathroom appliance business.
[Financial Reports Express]
○ Yunyi Electric and Doyin Pump Industry propose high share conversion and dividend
------
The controlling shareholder of Jiangsu Yunyi Electric Co., Ltd. (300304.SZ) proposes a 28-for-10 conversion of capital surplus into shares combined with 1 yuan dividend for every 10 shares according to its annual report. The controlling shareholder of Zhejiang Doyin Pump Industry Co., Ltd. (002793.SZ) proposes a 10-for-10 conversion of capital surplus into shares combined with 6 yuan dividend for every 10 shares according to its annual report.
[Trading Trends]
○ Two securities companies rosy about property capitals flowing into stock market in 2017
------
Shenwan ＆ Hongyuan Securities Co., Ltd. and CITIC Securities Company Limited (06030.HK; 600030.SH) held the annual strategy meeting on Nov. 23. They are rosy about the overall performance of the A-share market in 2017 and believe that the capitals from the property industry will be key incremental capitals in the A-share market in the following year. Shenwan ＆ Hongyuan Securities believes that the stock market and the property are likely to witness the see-saw effect in 2017 and the capitals for house purchase may flow into the stock market. CITIC Securities estimates that under the background of asset shortage, the new policies on the property will force more capitals out and the A-share market will benefit.
In addition, the premium of insurance companies will surge significantly. The A shares will be included in the MSCI index, which will also bring incremental capitals. However, institutes also remind that the recovery in the fourth quarter is closely related to the operation of insurance capitals in the year end. Investors should consider the influence of the cancellation of restrictions in the year end and early 2017.
[Trading Alarms]
○ T＆S Communications and Sanwei Conveying Equipment to conduct IPOs on Nov. 24
------
T＆S Communications Co., Ltd. (300570.SZ) issues shares at 20.59 yuan per share with an upper subscription limit of 11,500 shares for each account. The company is principally engaged in optical communication devices. Zhenjiang Sanwei Conveying Equipment Co., Ltd. (603033.SH) issues shares at 17.55 yuan per share with an upper subscription limit of 8,000 shares for each account. The company is principally engaged in rubber conveyer belts.
TOP
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