[Today's Guide]
○ Tax preference policy for health insurance to popularize nationwide, stepping in rapid development period
○Supply ＆ demand situation improves, carbon black price to see new round of rise
○ Guofeng Plastic Industry to invest in high-end film material project, Tianfu Energy to repay debts through private placement
○JANUS (Dongguan) Precision Components to introduce stock option incentive, East Group proposes high share conversion and dividend in annual report and predicts annual performance to grow
[SSN Focus]
○ Tax preference policy for health insurance to popularize nationwide, stepping in rapid development period
------
The General Office of the State Council on Nov. 28 released guidelines to further expand consumptions in the fields, such as tourism, culture, sports, health care, pension and education, and proposed to popularize a pre-tax deduction policy for the individual income tax of commercial health insurance to the whole country. This policy has been piloted in 31 cities from Jan. 1, 2016.
Comment: According to international experience, tax preference policy is the biggest leverage to push the premiums into fast track, which will incent passive insurance purchase into active one. Based on data of China Insurance Regulatory Commission, the original premiums of health insurance industry reached 343.0 billion yuan for the first three quarters, greatly up 86.77 percent year on year, obviously faster than 51.87 percent of 2015. Promoted by tax preference policy, institutions are optimistic that commercial health insurance will be one of the three largest businesses together with property and life insurances in the future. Based on development target proposed by the new "National Ten Rules for Insurance", China's health insurance scale will be 1.5 trillion yuan in 2020. Four big insurance companies listed in A-share market have all carried out health insurance businesses according to semi-annual reports.
◆ The guidelines also propose to orderly incent the yacht free-wall tourism in Hong Kong, Macao and Guangdong province, explore pilots for yacht leasing business, stably develop automobile consumption, speed up formulating new management methods for automobile sales, and expand pilot scope for automobile parallel import.
[SSN Selection]
○ Shanghai Municipal Management Commission of Housing and Urban-Rural Construction on Nov. 29 announced to further improve the differentiation-based housing loan policy, and a family shall pay at least 35 percent of the total price as down payment for their first house when applying for commercial loans.
○ SSN learnt that Tong Yang Life Insurance, subsidiary of Anbang Insurance Group, recently gains for 4 percent equities of Woori Bank with nearly 300 million U.S. dollars.
○ China's first professional VR market promotion commission will be set in Beijing on Dec. 13 to popularize the VR and its application.
○ Shanghai Lingang Holdings Corporation Limited (600848.SH), Shenzhen Mason Technologies Co., Ltd. (002654.SZ) and Ningbo Baosi Energy Equipment Co., Ltd. (300441.SZ) apply for issuing shares to acquire assets, which are unconditionally approved by China Securities Regulatory Commission.
○ Shenzhen Stock Exchange (SZSE) on Nov. 28 issued attention letters to Gree Electric Appliances, Inc. of Zhuhai (000651.SZ) and Sichuan Shuangma Cement Co., Ltd. (000935.SZ) respectively, as the former's stock price abnormally fluctuates, and the latter's equity alteration attracts much market attention. SZSE requires them to reply before Nov. 30.
TOP
[Industry Information]
○ Supply ＆ demand situation improves, carbon black price to see new round of rise
------
Cabot Corporation plans to increase the price of carbon black by 400 yuan per ton at the beginning of December, other enterprises are also likely to follow this move, up 300 to 500 yuan per ton, and since this year, China's domestic market for carbon black has achieved overall price growth of nearly 30 percent, Baiinfo data shows. Additionally, Jiangxi Black Cat Carbon Black Inc., Ltd. (002068.SZ) stated in its latest announcement that Taiyuan production line, accounting for nearly 10 percent of the listed company's output, reduces production load due to environmental protection, which shows that strength is intensified to limit the production so as to protect the environmental, beneficial to improve the supply ＆ demand situation in the industry.
Comment: Promoted by half deduction for purchase tax and other factors, the automobile sales surpass the expectation, demands for tire increase, and price improves, which greatly support the carbon black in the upstream. Furthermore, the inventory of Shandong, Shanxi and other provinces are low on the whole. The industrial output will possibly decline over 2 percent annually from 2016 to 2020, the demands will maintain an annual growth of nearly 6 percent, and the industrial supply ＆ demand situation is likely to further improve, according to research report of securities companies.
TOP
[Announcement Interpretation]
○ Guofeng Plastic Industry to invest in high-end film material project
------
Anhui Guofeng Plastic Industry Co., Ltd. (000859.SZ) plans to raise no more than 927 million yuan through private placement at a price no less than 5.47 yuan, so as to invest in high-performance micro-electronics polyimide film material and other projects. Its substantial shareholder, Hefei Industry Investment Holding (Group) Co., Ltd., proposes to carry out subscription no less than 400 million yuan.
The above-said membrane material is mainly used in electronics, electro-optic display and aerospace fields, which severely depends on import. Once the project reaches designed capacity, it is expected to earn net profits of 170 million yuan every year.
○Tianfu Energy to repay debts through private placement, shareholders subscribe shares indirectly
------
Xinjiang Tianfu Energy Co., Ltd. (600509.SH) plans to raise no more than 2.35 billion yuan at a price of 6.99 yuan per share through private placement from its controlling shareholders and enterprises under its actual controller. The fundraising will be used to repay bank loans and corporate bonds.
TOP
○JANUS (Dongguan) Precision Components to introduce stock option incentive
------
JANUS (Dongguan) Precision Components Co., Ltd. (300083.SZ) plans to launch restricted stock incentive plan at a price of 4.03 yuan per share. Performance objective of each assessment period will be to gain net profits of 70 million yuan, 350 million yuan, 380 million yuan and 41 million yuan at least respectively. The company suffered losses of 470 million yuan and gain net profit of 79.81 million yuan in the first three quarters of this year.
○AVIC Electromechanical Systems to joint in private placement of Zhonghang Heibao
------
AVIC Electromechanical Systems Co., Ltd. (002013.SZ) plans to pay no more than 334 million yuan to subscribe 40 million stocks at a price of 8.34 yuan per share, which are issued by Zhonghang Heibao Co., Ltd. (600760.SH). Zhonghang Heibao also disclosed restructuring proposal, including purchasing 100 percent equity of Shenyang Aircraft Industry Group at a cost of 7.311 billion yuan.
Information shows that Aircraft Industry Group is a large modern aircraft manufacturer with integration of scientific research, production, experiment and trial flight. Its core product is aviation defense equipment and major product is fighter. Civil aviation product includes components of domestic and foreign civil aircraft.
○Savings Environmental and Sunvim Group see shareholding increase
------
Qiu Guoqiang, director and shareholder with more than five percent equity of Xiamen Savings Environmental Co., Ltd. (300056.SZ), intends to buy the company's stocks worth no more than 100 million yuan during Nov. 28, 2016 and May 27, 2017.
Controller shareholder of Sunvim Group Co., Ltd. (002083.SZ) bought 2,364,800 shares of the company on Nov. 28, accounting for 0.26 percent of the company's total share capital, and plans to buy stocks in next 12 months, which will account for 2 percent of the company's total share capital at most.
○Pubang Landscape Architecture wins bidding
------
Pubang Landscape Architecture Co., Ltd. (002663.SZ) and Meizhou Municipal Construction Group Company jointly win the bidding for PPP project of virescence in Zhengzhou Hi-tech Zone. The bidding amount is 4.17 billion yuan, accounting for 171.39 percent of the company's operating revenues in 2015.
○Datang International Power Generation to invest in thermoelectric projects through private placement
------
Datang International Power Generation Co., Ltd. (601991.SH;00991.HK) plans to issue A shares and H shares to substantial shareholder China Datang Corporation. It will issue A shares to raise 9.95 billion yuan at most at a price of 3.56 yuan per share to invest in several thermoelectric projects, and issue H shares to raise no more than 5.925 billion Hong Kong dollars through private placement.
[Financial Reports Express]
○East Group proposes high share conversion and dividend in annual report and predicts annual performance to grow
------
Actual controller of East Group Co., Ltd. (300376.SZ) proposes a 30-for-10 conversion of capital surplus into shares combined with 0.9 yuan dividend for every 10 shares in its annual report. The company also forecasts its net profit to increase by 40-70 percent in 2016.
[Trading Trends]
○Hi-speed Road ＆ Bridge bought by 5 institutional seats
------
The trading volume ranking list on Dec. 17 shows that Shandong Hi-speed Road ＆ Bridge Co., Ltd. (002326.SZ) was bought through five institutional seats with a total of 105 million yuan, accounting for 36.04 percent of its intraday turnover. Besides, another two institutional seats sold its stocks worth 16,638,400 yuan.
Comment: Institutions point out that the amount of orders newly signed by the company since the beginning of this year reaches 19.139 billion yuan, hitting a new high in history. Shandong provincial government proposes to accelerate expressway construction during the 13th Five-year Plan period and investment amount in the first three years is scheduled to be 100 billion yuan. As a leading enterprise of expressway construction in Shandong province, the company is expected to continue to gain big orders. In addition, the company will invest in engineering project through equity trust, which has low risk in funds reclaim and can obtain high return on investment.
[Trading Alarms]
○Xingye Materials Technology and Sinqi Pharmaceutical to launch IPOs on Nov. 29
------
Suzhou Xingye Materials Technology Co., Ltd. is going to launch IPO at a price of 10.12 yuan per share with an upper limit of 20,000 shares for single account. The company is engaged in molding material. Shenyang Sinqi Pharmaceutical Co., Ltd. is going to launch IPO at a price of 5.16 yuan per share with an upper limit of 20,000 shares for single account. The company is specialized in guttae ophthalmicae.
TOP
○ Tax preference policy for health insurance to popularize nationwide, stepping in rapid development period
○Supply ＆ demand situation improves, carbon black price to see new round of rise
○ Guofeng Plastic Industry to invest in high-end film material project, Tianfu Energy to repay debts through private placement
○JANUS (Dongguan) Precision Components to introduce stock option incentive, East Group proposes high share conversion and dividend in annual report and predicts annual performance to grow
[SSN Focus]
○ Tax preference policy for health insurance to popularize nationwide, stepping in rapid development period
------
The General Office of the State Council on Nov. 28 released guidelines to further expand consumptions in the fields, such as tourism, culture, sports, health care, pension and education, and proposed to popularize a pre-tax deduction policy for the individual income tax of commercial health insurance to the whole country. This policy has been piloted in 31 cities from Jan. 1, 2016.
Comment: According to international experience, tax preference policy is the biggest leverage to push the premiums into fast track, which will incent passive insurance purchase into active one. Based on data of China Insurance Regulatory Commission, the original premiums of health insurance industry reached 343.0 billion yuan for the first three quarters, greatly up 86.77 percent year on year, obviously faster than 51.87 percent of 2015. Promoted by tax preference policy, institutions are optimistic that commercial health insurance will be one of the three largest businesses together with property and life insurances in the future. Based on development target proposed by the new "National Ten Rules for Insurance", China's health insurance scale will be 1.5 trillion yuan in 2020. Four big insurance companies listed in A-share market have all carried out health insurance businesses according to semi-annual reports.
◆ The guidelines also propose to orderly incent the yacht free-wall tourism in Hong Kong, Macao and Guangdong province, explore pilots for yacht leasing business, stably develop automobile consumption, speed up formulating new management methods for automobile sales, and expand pilot scope for automobile parallel import.
[SSN Selection]
○ Shanghai Municipal Management Commission of Housing and Urban-Rural Construction on Nov. 29 announced to further improve the differentiation-based housing loan policy, and a family shall pay at least 35 percent of the total price as down payment for their first house when applying for commercial loans.
○ SSN learnt that Tong Yang Life Insurance, subsidiary of Anbang Insurance Group, recently gains for 4 percent equities of Woori Bank with nearly 300 million U.S. dollars.
○ China's first professional VR market promotion commission will be set in Beijing on Dec. 13 to popularize the VR and its application.
○ Shanghai Lingang Holdings Corporation Limited (600848.SH), Shenzhen Mason Technologies Co., Ltd. (002654.SZ) and Ningbo Baosi Energy Equipment Co., Ltd. (300441.SZ) apply for issuing shares to acquire assets, which are unconditionally approved by China Securities Regulatory Commission.
○ Shenzhen Stock Exchange (SZSE) on Nov. 28 issued attention letters to Gree Electric Appliances, Inc. of Zhuhai (000651.SZ) and Sichuan Shuangma Cement Co., Ltd. (000935.SZ) respectively, as the former's stock price abnormally fluctuates, and the latter's equity alteration attracts much market attention. SZSE requires them to reply before Nov. 30.
TOP
[Industry Information]
○ Supply ＆ demand situation improves, carbon black price to see new round of rise
------
Cabot Corporation plans to increase the price of carbon black by 400 yuan per ton at the beginning of December, other enterprises are also likely to follow this move, up 300 to 500 yuan per ton, and since this year, China's domestic market for carbon black has achieved overall price growth of nearly 30 percent, Baiinfo data shows. Additionally, Jiangxi Black Cat Carbon Black Inc., Ltd. (002068.SZ) stated in its latest announcement that Taiyuan production line, accounting for nearly 10 percent of the listed company's output, reduces production load due to environmental protection, which shows that strength is intensified to limit the production so as to protect the environmental, beneficial to improve the supply ＆ demand situation in the industry.
Comment: Promoted by half deduction for purchase tax and other factors, the automobile sales surpass the expectation, demands for tire increase, and price improves, which greatly support the carbon black in the upstream. Furthermore, the inventory of Shandong, Shanxi and other provinces are low on the whole. The industrial output will possibly decline over 2 percent annually from 2016 to 2020, the demands will maintain an annual growth of nearly 6 percent, and the industrial supply ＆ demand situation is likely to further improve, according to research report of securities companies.
TOP
[Announcement Interpretation]
○ Guofeng Plastic Industry to invest in high-end film material project
------
Anhui Guofeng Plastic Industry Co., Ltd. (000859.SZ) plans to raise no more than 927 million yuan through private placement at a price no less than 5.47 yuan, so as to invest in high-performance micro-electronics polyimide film material and other projects. Its substantial shareholder, Hefei Industry Investment Holding (Group) Co., Ltd., proposes to carry out subscription no less than 400 million yuan.
The above-said membrane material is mainly used in electronics, electro-optic display and aerospace fields, which severely depends on import. Once the project reaches designed capacity, it is expected to earn net profits of 170 million yuan every year.
○Tianfu Energy to repay debts through private placement, shareholders subscribe shares indirectly
------
Xinjiang Tianfu Energy Co., Ltd. (600509.SH) plans to raise no more than 2.35 billion yuan at a price of 6.99 yuan per share through private placement from its controlling shareholders and enterprises under its actual controller. The fundraising will be used to repay bank loans and corporate bonds.
TOP
○JANUS (Dongguan) Precision Components to introduce stock option incentive
------
JANUS (Dongguan) Precision Components Co., Ltd. (300083.SZ) plans to launch restricted stock incentive plan at a price of 4.03 yuan per share. Performance objective of each assessment period will be to gain net profits of 70 million yuan, 350 million yuan, 380 million yuan and 41 million yuan at least respectively. The company suffered losses of 470 million yuan and gain net profit of 79.81 million yuan in the first three quarters of this year.
○AVIC Electromechanical Systems to joint in private placement of Zhonghang Heibao
------
AVIC Electromechanical Systems Co., Ltd. (002013.SZ) plans to pay no more than 334 million yuan to subscribe 40 million stocks at a price of 8.34 yuan per share, which are issued by Zhonghang Heibao Co., Ltd. (600760.SH). Zhonghang Heibao also disclosed restructuring proposal, including purchasing 100 percent equity of Shenyang Aircraft Industry Group at a cost of 7.311 billion yuan.
Information shows that Aircraft Industry Group is a large modern aircraft manufacturer with integration of scientific research, production, experiment and trial flight. Its core product is aviation defense equipment and major product is fighter. Civil aviation product includes components of domestic and foreign civil aircraft.
○Savings Environmental and Sunvim Group see shareholding increase
------
Qiu Guoqiang, director and shareholder with more than five percent equity of Xiamen Savings Environmental Co., Ltd. (300056.SZ), intends to buy the company's stocks worth no more than 100 million yuan during Nov. 28, 2016 and May 27, 2017.
Controller shareholder of Sunvim Group Co., Ltd. (002083.SZ) bought 2,364,800 shares of the company on Nov. 28, accounting for 0.26 percent of the company's total share capital, and plans to buy stocks in next 12 months, which will account for 2 percent of the company's total share capital at most.
○Pubang Landscape Architecture wins bidding
------
Pubang Landscape Architecture Co., Ltd. (002663.SZ) and Meizhou Municipal Construction Group Company jointly win the bidding for PPP project of virescence in Zhengzhou Hi-tech Zone. The bidding amount is 4.17 billion yuan, accounting for 171.39 percent of the company's operating revenues in 2015.
○Datang International Power Generation to invest in thermoelectric projects through private placement
------
Datang International Power Generation Co., Ltd. (601991.SH;00991.HK) plans to issue A shares and H shares to substantial shareholder China Datang Corporation. It will issue A shares to raise 9.95 billion yuan at most at a price of 3.56 yuan per share to invest in several thermoelectric projects, and issue H shares to raise no more than 5.925 billion Hong Kong dollars through private placement.
[Financial Reports Express]
○East Group proposes high share conversion and dividend in annual report and predicts annual performance to grow
------
Actual controller of East Group Co., Ltd. (300376.SZ) proposes a 30-for-10 conversion of capital surplus into shares combined with 0.9 yuan dividend for every 10 shares in its annual report. The company also forecasts its net profit to increase by 40-70 percent in 2016.
[Trading Trends]
○Hi-speed Road ＆ Bridge bought by 5 institutional seats
------
The trading volume ranking list on Dec. 17 shows that Shandong Hi-speed Road ＆ Bridge Co., Ltd. (002326.SZ) was bought through five institutional seats with a total of 105 million yuan, accounting for 36.04 percent of its intraday turnover. Besides, another two institutional seats sold its stocks worth 16,638,400 yuan.
Comment: Institutions point out that the amount of orders newly signed by the company since the beginning of this year reaches 19.139 billion yuan, hitting a new high in history. Shandong provincial government proposes to accelerate expressway construction during the 13th Five-year Plan period and investment amount in the first three years is scheduled to be 100 billion yuan. As a leading enterprise of expressway construction in Shandong province, the company is expected to continue to gain big orders. In addition, the company will invest in engineering project through equity trust, which has low risk in funds reclaim and can obtain high return on investment.
[Trading Alarms]
○Xingye Materials Technology and Sinqi Pharmaceutical to launch IPOs on Nov. 29
------
Suzhou Xingye Materials Technology Co., Ltd. is going to launch IPO at a price of 10.12 yuan per share with an upper limit of 20,000 shares for single account. The company is engaged in molding material. Shenyang Sinqi Pharmaceutical Co., Ltd. is going to launch IPO at a price of 5.16 yuan per share with an upper limit of 20,000 shares for single account. The company is specialized in guttae ophthalmicae.
TOP
Latest comments