[Today's Guide]
○OPEC possibly reaches agreement on production reduction, oil price rallies during trading hours
○Passenger bus to allowed to use ternary lithium batteries in 2017, cobalt materials to see benefit
○ Edge computing becomes advantageous and enjoys promising application prospect in many fields
○Shaanxi Provincial Natural Gas invests in gas transmission pipeline through private placement, Controlling shareholder of Sante Cableway buys shares from 2nd largest shareholder
[SSN Focus]
○OPEC possibly reaches agreement on production reduction, oil price rallies during trading hours
------
Members of the Organization of Petroleum Exporting Countries (OPEC) met in Vienna at 19:00, Nov. 30 (Beijing time) to discuss agreement on production reduction. All OPEC members had agreed to cut average daily oil production on the informal meeting held on Sept. 28, but later four countries with Iran included applied for exemption. Officials of multiple member countries were rosy about success in reaching the agreement ahead of Vienna meeting and international oil price rallied. As of 21:00, Nov.30 (Beijing time), the dominant contract of crude futures in New York moved up around 7 percent to above 48 US dollars per barrel.
Comment: Industry insiders believed that if the agreement on production reduction is finally reached, oil price might skyrocket in the short term, but the reduction is expected to be small and cannot constantly fuel price hike. China Securities pointed out in its research report that if oil price ranges from 40 US dollars per barrel to 60 US dollars per barrel, oil exploration business might stop loss in the second half; oil refining business will still expect sizable profit; the prosperity of chemical products will continue. Attention should be paid to the industrial chain of propane dehydrogenation and dacron.
◆As reported by jiemian.com, the scheme for oil and gas system reform will be rolled out before end 2016. Liu Manping, a researcher with a price monitoring institute under the National Development and Reform Commission, recently indicated that the reform might explore the reorganization, splitting and ownership reform of the oilfield services and equipment companies under China National Petroleum Corporation, China Petrochemical Corporation and China National Offshore Oil Corporation.
[SSN Selection]
○The executive meeting of the State Council held on Nov. 29 decided to return certain amount of value-added tax to ensure existing local financial capacity. External supervision is required to be intensified so as to improve operation performance of state-owned assets.
○A net input of 90 billion yuan was carried out by China's central bank in the market on Nov. 30, but capital price still surged, showing that institutions are worried about the capital supply in December.
○The green book of China's population and labor, edited by Institute of Population and Labor Economics at the Chinese Academy of Social Sciences, was released on Nov. 30. It is believed that China might have to further relax control over fertility in the future.
○Zhuhai Gree Electric Appliances, Inc. (000651.SZ) announced that Foresea Life Insurance Co., Ltd. purchased large amount shares of the company during Nov.17-28, increasing its shareholding of the company from 0.99 percent at end Q3 to 4.13 percent.
○The merger and acquisition (M＆A) applications of Shandong Jincheng Pharmaceutical Co., Ltd. (300233.SZ) and Taiyuan coal Gasification Company Limited (000968.SZ) are unconditionally approved by China Securities Regulatory Commission, while the M＆A application of Beijing Hualian Department Store Co., Ltd. (000882.SZ) is nodded with conditions.
TOP
[Industry Information]
○Passenger bus to allowed to use ternary lithium batteries in 2017, cobalt materials to see benefit
------
The Ministry of Industry and Information Technology (MIIT) recently held a meeting to publicize the safety supervision over the promotion and application of new energy vehicles. It is proposed in the meeting that passenger buses using ternary batteries that apply for inclusion into the catalogue of recommended new energy vehicles should submit third-party testing reports too from Jan. 1, 2017. Industry insiders pointed out that such move might mean that under the precondition of passing the test and expanded test of thermal runaway, passenger buses using ternary lithium batteries can apply for inclusion into the catalogue, marking that passenger buses will be allowed to carry ternary batteries from Jan. 1, 2017.
Comment: Shenwan Hongyuan Securities believed that the power consumption of a single passenger bus is far higher than that of a passenger vehicle. The decontrol of policies will greatly boost the industrial chain of ternary batteries, and cobalt will definitely benefit from it. Zhejiang Huayou Cobalt Co., Ltd. (603799.SH) is one of the largest cobalt products producers in China, and the price of its core product cobaltosic oxide has hiked since Q3; GEM Co., Ltd. (002340.SZ) makes superfine Cobalt and Nickel powder out of various electronic wastes. The company has built a core industrial chain for anode materials of power batteries formed by "materials recycling-precursor manufacturing-ternary material manufacturing".
TOP
○Edge computing becomes advantageous and enjoys promising application prospect in many fields
------
The First Edge Computing Industry Summit 2016 is held in Beijing today and establishment of Edge Computing Industrial Alliance will be also announced at the summit. The alliance is proposed and initiated by Huawei Technologies Co., Ltd., Shenyang Institute of Automation Chinese Academy of Sciences, China Academy of Information and Communications Technology (CAICT), Intel Corp., Advanced RISC Machines and iSoftStone. In addition, the summit also releases White Paper of Edge Computing Industrial Alliance, highlighting contents about development trend and key challenges of edge computing industry, and formulates referential framework and technological framework of edge computing so as to provide instruction for follow-up development of the alliance.
Research report of securities companies stated that mobile edge computing (MEC) can integrate wireless network and Internet technology and provides functions of computing, storage and processing to wireless network. So it will enjoy promising prospect in virtual reality, video and smart community fields. At present, 5G MEC solution developed by ZTE Corporation (000063.SZ) has been tested in Shenzhen, Shanghai, Chengdu and other cities and actively joins in formulation of national standards. Wangsu Science ＆ Technology Co., Ltd. (300017.SZ) also proposes community group strategy and aims to build over 3,000 nodes across the country in three years with each community node covering about 100,000 families.
TOP
[Announcement Interpretation]
○Shaanxi Provincial Natural Gas invests in gas transmission pipeline through private placement
------
Shaanxi Provincial Natural Gas Co., Ltd. (002267.SZ) plans to raise no more than 1.5 billion yuan by issuing shares at a price of 9.12 yuan per share at least through private placement. The fundraising will be mainly invested in several gas transmission pipeline projects.
After the project is put into operation, the length of gas transmission pipeline of the company will be added by 488 kilometers based on more than 3,000 kilometers at present, and the company's annual capacity of transmitting gas will increase from 13.5 billion cubic meters to 14.5 cubic meters.
○Controlling shareholder of Sante Cableway buys shares from 2nd largest shareholder
------
Controlling shareholder of Wuhan Sante Cableway Group Co., Ltd. (002159.SZ) gains 4,201,500 shares from the company's second largest shareholder through block trade on Nov. 30, which accounts for 3.03 percent of the company's total share capital. The shares are traded at 28.63 yuan per share at average. The latest stock price is 28.59 yuan per share.
○Substantial shareholder of China Sports Industry Group mulls on equity transfer and has no negotiation with Wanda and Alisports yet
------
Sports Funds Management Center of General Administration Sports, substantial shareholder of China Sports Industry Group Co., Ltd. (600158.SH), indicates that work about transferring its shares of the company is now under pre-approval process of General Administration of Sports and Ministry of Finance and then will enter the process of publicly collect transferees. By now, it has not met, discussed or negotiated with any relevant parties including Dalian Wanda Commercial Properties Co., Ltd. and Alisports. Com and has no intentional transferees.
○Director and spouse of general manager of Yintai Resources Co., Ltd. (000975.SZ) increases shareholding by 70,900 shares on Nov. 30 at a price of 14.509 yuan per share and might continue to buy more shares in the future.
○Board of director of Xinhua Net Co., Ltd. (603888.SH) has approved profit distribution scheme. As of Sept. 30, there is 699,615,900 yuan of undistributed profits available for distribution. The company plans to carry out interim profit distribution by distributing cash dividends worth 17 yuan (tax included) for every 10 shares to all its shareholders based on the total share capital with 208 million shares.
[Trading Alarms]
○Mingdiao Decorative Incorporated and CENTER International Group to launch IPOs on Dec. 1
------
Mingdiao Decorative Incorporated is going to launch IPO at a price of 16.53 yuan per share with an upper subscription limit of 16,500 shares for single account. The company is engaged in decorating project. CENTER International Group Company Limited is going to launch IPO at a price of 9.18 yuan per share with an upper subscription limit of 18,000 shares for single account. The company is specialized in metal containment system project.
TOP
○OPEC possibly reaches agreement on production reduction, oil price rallies during trading hours
○Passenger bus to allowed to use ternary lithium batteries in 2017, cobalt materials to see benefit
○ Edge computing becomes advantageous and enjoys promising application prospect in many fields
○Shaanxi Provincial Natural Gas invests in gas transmission pipeline through private placement, Controlling shareholder of Sante Cableway buys shares from 2nd largest shareholder
[SSN Focus]
○OPEC possibly reaches agreement on production reduction, oil price rallies during trading hours
------
Members of the Organization of Petroleum Exporting Countries (OPEC) met in Vienna at 19:00, Nov. 30 (Beijing time) to discuss agreement on production reduction. All OPEC members had agreed to cut average daily oil production on the informal meeting held on Sept. 28, but later four countries with Iran included applied for exemption. Officials of multiple member countries were rosy about success in reaching the agreement ahead of Vienna meeting and international oil price rallied. As of 21:00, Nov.30 (Beijing time), the dominant contract of crude futures in New York moved up around 7 percent to above 48 US dollars per barrel.
Comment: Industry insiders believed that if the agreement on production reduction is finally reached, oil price might skyrocket in the short term, but the reduction is expected to be small and cannot constantly fuel price hike. China Securities pointed out in its research report that if oil price ranges from 40 US dollars per barrel to 60 US dollars per barrel, oil exploration business might stop loss in the second half; oil refining business will still expect sizable profit; the prosperity of chemical products will continue. Attention should be paid to the industrial chain of propane dehydrogenation and dacron.
◆As reported by jiemian.com, the scheme for oil and gas system reform will be rolled out before end 2016. Liu Manping, a researcher with a price monitoring institute under the National Development and Reform Commission, recently indicated that the reform might explore the reorganization, splitting and ownership reform of the oilfield services and equipment companies under China National Petroleum Corporation, China Petrochemical Corporation and China National Offshore Oil Corporation.
[SSN Selection]
○The executive meeting of the State Council held on Nov. 29 decided to return certain amount of value-added tax to ensure existing local financial capacity. External supervision is required to be intensified so as to improve operation performance of state-owned assets.
○A net input of 90 billion yuan was carried out by China's central bank in the market on Nov. 30, but capital price still surged, showing that institutions are worried about the capital supply in December.
○The green book of China's population and labor, edited by Institute of Population and Labor Economics at the Chinese Academy of Social Sciences, was released on Nov. 30. It is believed that China might have to further relax control over fertility in the future.
○Zhuhai Gree Electric Appliances, Inc. (000651.SZ) announced that Foresea Life Insurance Co., Ltd. purchased large amount shares of the company during Nov.17-28, increasing its shareholding of the company from 0.99 percent at end Q3 to 4.13 percent.
○The merger and acquisition (M＆A) applications of Shandong Jincheng Pharmaceutical Co., Ltd. (300233.SZ) and Taiyuan coal Gasification Company Limited (000968.SZ) are unconditionally approved by China Securities Regulatory Commission, while the M＆A application of Beijing Hualian Department Store Co., Ltd. (000882.SZ) is nodded with conditions.
TOP
[Industry Information]
○Passenger bus to allowed to use ternary lithium batteries in 2017, cobalt materials to see benefit
------
The Ministry of Industry and Information Technology (MIIT) recently held a meeting to publicize the safety supervision over the promotion and application of new energy vehicles. It is proposed in the meeting that passenger buses using ternary batteries that apply for inclusion into the catalogue of recommended new energy vehicles should submit third-party testing reports too from Jan. 1, 2017. Industry insiders pointed out that such move might mean that under the precondition of passing the test and expanded test of thermal runaway, passenger buses using ternary lithium batteries can apply for inclusion into the catalogue, marking that passenger buses will be allowed to carry ternary batteries from Jan. 1, 2017.
Comment: Shenwan Hongyuan Securities believed that the power consumption of a single passenger bus is far higher than that of a passenger vehicle. The decontrol of policies will greatly boost the industrial chain of ternary batteries, and cobalt will definitely benefit from it. Zhejiang Huayou Cobalt Co., Ltd. (603799.SH) is one of the largest cobalt products producers in China, and the price of its core product cobaltosic oxide has hiked since Q3; GEM Co., Ltd. (002340.SZ) makes superfine Cobalt and Nickel powder out of various electronic wastes. The company has built a core industrial chain for anode materials of power batteries formed by "materials recycling-precursor manufacturing-ternary material manufacturing".
TOP
○Edge computing becomes advantageous and enjoys promising application prospect in many fields
------
The First Edge Computing Industry Summit 2016 is held in Beijing today and establishment of Edge Computing Industrial Alliance will be also announced at the summit. The alliance is proposed and initiated by Huawei Technologies Co., Ltd., Shenyang Institute of Automation Chinese Academy of Sciences, China Academy of Information and Communications Technology (CAICT), Intel Corp., Advanced RISC Machines and iSoftStone. In addition, the summit also releases White Paper of Edge Computing Industrial Alliance, highlighting contents about development trend and key challenges of edge computing industry, and formulates referential framework and technological framework of edge computing so as to provide instruction for follow-up development of the alliance.
Research report of securities companies stated that mobile edge computing (MEC) can integrate wireless network and Internet technology and provides functions of computing, storage and processing to wireless network. So it will enjoy promising prospect in virtual reality, video and smart community fields. At present, 5G MEC solution developed by ZTE Corporation (000063.SZ) has been tested in Shenzhen, Shanghai, Chengdu and other cities and actively joins in formulation of national standards. Wangsu Science ＆ Technology Co., Ltd. (300017.SZ) also proposes community group strategy and aims to build over 3,000 nodes across the country in three years with each community node covering about 100,000 families.
TOP
[Announcement Interpretation]
○Shaanxi Provincial Natural Gas invests in gas transmission pipeline through private placement
------
Shaanxi Provincial Natural Gas Co., Ltd. (002267.SZ) plans to raise no more than 1.5 billion yuan by issuing shares at a price of 9.12 yuan per share at least through private placement. The fundraising will be mainly invested in several gas transmission pipeline projects.
After the project is put into operation, the length of gas transmission pipeline of the company will be added by 488 kilometers based on more than 3,000 kilometers at present, and the company's annual capacity of transmitting gas will increase from 13.5 billion cubic meters to 14.5 cubic meters.
○Controlling shareholder of Sante Cableway buys shares from 2nd largest shareholder
------
Controlling shareholder of Wuhan Sante Cableway Group Co., Ltd. (002159.SZ) gains 4,201,500 shares from the company's second largest shareholder through block trade on Nov. 30, which accounts for 3.03 percent of the company's total share capital. The shares are traded at 28.63 yuan per share at average. The latest stock price is 28.59 yuan per share.
○Substantial shareholder of China Sports Industry Group mulls on equity transfer and has no negotiation with Wanda and Alisports yet
------
Sports Funds Management Center of General Administration Sports, substantial shareholder of China Sports Industry Group Co., Ltd. (600158.SH), indicates that work about transferring its shares of the company is now under pre-approval process of General Administration of Sports and Ministry of Finance and then will enter the process of publicly collect transferees. By now, it has not met, discussed or negotiated with any relevant parties including Dalian Wanda Commercial Properties Co., Ltd. and Alisports. Com and has no intentional transferees.
○Director and spouse of general manager of Yintai Resources Co., Ltd. (000975.SZ) increases shareholding by 70,900 shares on Nov. 30 at a price of 14.509 yuan per share and might continue to buy more shares in the future.
○Board of director of Xinhua Net Co., Ltd. (603888.SH) has approved profit distribution scheme. As of Sept. 30, there is 699,615,900 yuan of undistributed profits available for distribution. The company plans to carry out interim profit distribution by distributing cash dividends worth 17 yuan (tax included) for every 10 shares to all its shareholders based on the total share capital with 208 million shares.
[Trading Alarms]
○Mingdiao Decorative Incorporated and CENTER International Group to launch IPOs on Dec. 1
------
Mingdiao Decorative Incorporated is going to launch IPO at a price of 16.53 yuan per share with an upper subscription limit of 16,500 shares for single account. The company is engaged in decorating project. CENTER International Group Company Limited is going to launch IPO at a price of 9.18 yuan per share with an upper subscription limit of 18,000 shares for single account. The company is specialized in metal containment system project.
TOP
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