[Today's Guide]
○MIIT to support power battery recycling, market scale may explosively grow
○EU to launch cooperative ITS, agricultural modernization speeds up
○Shares of Mogao Industrial Development to further purchased, Transfer of right to vote of Yanhua Smartech still under negotiation
○Huaming Power Equipment signs big orders, Eoptolink Technology expects growth and proposes high share conversion and dividend in annual report
[SSN Focus]
○ MIIT to support power battery recycling, market scale may explosively grow
------
Ministry of Industry and Information Technology (MIIT) on Dec. 1 released exposure draft for recycling and managing power storage battery, and encouraged automobile producers, battery manufacturers, recycling enterprises and comprehensive utilization enterprises to jointly build up and take advantage of wasted power battery recycling network. The MIIT will formulate fiscal ＆ tax preference policy, industrial funds, award management and other incentive policies, research and explore the market-oriented pattern, including scrap value trading of power storage battery, and enhance its recycling.
Comment: Along with high growth of new energy automobile market in China, the market space for wasted power battery recycling will expand. Based on institutional estimation, this market will explosively grow to a scale of 5 billion yuan in 2018 and further to 13.6 and 3.11 billion yuan respectively in 2020 and 2023. GEM Co., Ltd. (002340.SZ), Ningbo Shanshan Co., Ltd. (600884.SH) and other listed companies having deployed in this field will achieve advantages as the first movers.
[SSN Selection]
○ Taxation policy has been clearly specified on Dec. 1 for Shenzhen-Hong Kong Stock Connect program, and individual income tax on spread from investing in H shares will be exempted within next three years.
○ It has been the first time for dominant contract of CSI300 stock index futures to have premium on non-settlement day since 2016, and investors gradually become optimistic on the following market trend.
○ The manufacturing PMI and non-manufacturing commercial activity index increased to 2-yr highs in November respectively, showing that China's economy further stabilizes and consolidates.
○ Tangshan Sanyou Chemical Industries Co., Ltd. (600409.SH) and other sodium carbonate enterprises have increased the factory price again on Dec. 1, and such price has been increased over 30 percent commonly since the fourth quarter, data of 100PPI.com shows.
○ Chen Hong, chairman of SAIC Motor Corporation Limited (600104.SH), revealed that the company's sales for new energy automobile surpassed 28,000 vehicles in 2016, and will excess 80,000 vehicles in next year.
TOP
[Industry Information]
○ EU to launch cooperative ITS, likely to enhance demands for RF components
------
European Commission recently approved a strategy of "cooperative intelligent transportation system (ITS) in Europe", hoping to make European countries commonly allocate such ITS in 2019, and realize the "intelligent communication" between automobiles, automobile and road facilities. The cooperative ITS features in allowing the said mutual-communications based on various communication technologies, and making road users and traffic management share information with effective coordination.
Comment: This system will possibly provide reference for China's developing intelligent traffic. radio frequency (RF) components are critical for wireless connection, research report of Dongxing Securities thought. The said intelligent mutual-communications are likely to incent the demands for RF components. Huizhou Speed Wireless Technology Co., Limited (300322.SZ) is a leading enterprise in China regarding to R＆D for 5G antenna and RF front-end module. Shenzhen Microgate Technology Co., Ltd. (300319.SZ) is a magnate producing chip inductor and LTCC RF components.
○ Agricultural modernization speeds up, technological innovation becomes key point for transformation
------
The 4th Chengdu International Urban Modern Agricultural Expo was held on Dec. 1 with a theme of "three industries' interactions with integrated development", which highlighted discussions about integration of the first, second and third industries related to modern agriculture, agricultural innovation ＆ business start-up, and etc. The alliance development forum for national agricultural technologies and innovations was held during the expo period, and the related association was also established, it learnt. Additionally, Ministry of Agriculture recently held a forum to this respect, and the Minister Han Changbin stressed to speed up agricultural technologies and innovations and promote agricultural modernization.
Comment: China is at a key stage to speed up the promotion for agricultural modernization. Stabilizing the grain production, increasing the revenue, adjusting the structure, improving the quality ＆ efficiency, as well as mode transformation all propose higher requirements for agricultural technologies and innovation. National technological innovation planning for the "13th Five-Year Plan" clearly proposed to develop high-efficient and safe-ecological modern agricultural technologies and intelligent agriculture, which are a core part. Among listed companies, Anhui Huilong Agricultural Means Of Production Co., Ltd. (002556.SZ) positively creates smart and accurate agriculture, and deploys in aviation plant protection service and rural e-commerce business; Shenzhen Batian Ecotypic Engineering Co., Ltd. (002170.SZ) builds up agricultural big data cloud-platform, and improve the planting efficiency.
TOP
[Announcement Interpretation]
○China King Link and Tibet Huafu Information Technology to further purchase shares of Mogao Industrial Development
------
In response to an inquiry letter from Shanghai Stock Exchange, Gansu Mogao Industrial Development Co., Ltd. (600543.SH) claimed that its controlling shareholder Gansu Farms Agribusiness Group Co., Ltd., a state-owned company, vowed to protect its controlling stake and would carefully study on how to consolidate state-owned controlling stake. China King Link Holdings Co., Ltd. and Tibet Huafu Information Technology Co., Ltd., which bought shares of the company through secondary market acquisition to 5 percent limit earlier, totally held 15 percent equities of Mogao Industrial Development. The two companies claim that they will further purchase shares of Mogao Industrial Development with 1million yuan to 200 million yuan in the next 12 months.
○Transfer of right to vote by substantial shareholder of Yanhua Smartech still under negotiation
------
Shanghai Yanhua Smartech Group Co., Ltd. (002178.SZ) reported the progress of the intention of its substantial shareholder Shanghai Yanhua Hi-Tech Co., Ltd. to entrust the right to vote to third-party institutions. At present, the both parties fail to reach agreement on the main clauses concerning the entrusting of the right to vote, and further negotiation is still underway. The company claimed that once the entrusting of the right to vote is finalized, actual controller of the company might change and there will be uncertainties in the company's future development strategy and operation planning.
TOP
○Huaming Power Equipment and etc. sign big orders
------
A fully-owned subsidiary under Huaming Power Equipment Co., Ltd. (002270.SZ) signed contracts for a 100MW photovoltaic power station and a 50MW photovoltaic power station in Nanyang city. The projects total 1.095 billion yuan. The company pocketed total revenue of 603 million yuan in 2015.
In addition, Jiangsu Tongguang Electronic Wire ＆ Cable Co., Ltd. (300265.SZ) won the bidding in China Mobile Communications Corp's 140 million yuan project for procuring ordinary optical cables in 2016; together with its partners, China CAMC Engineering Co., Ltd. (002051.SZ) won the bidding in the Public-Private-Partnership (PPP) project involving small-scale irrigation and water conservancy projects and small and medium-sized reservoirs worth 887 million yuan in Jishou city; China Railway Group Limited (601390.SH) recently won bidding in projects totaling 36.75 billion yuan.
○Longmaster Information ＆ Technology and H＆T Intelligent Control propose expansion of main business through private placement
------
Longmaster Information ＆ Technology Co., Ltd. (300288.SZ) proposes to raise no more than 650 million yuan by issuing no more than 35 million shares through private placement. The raised fund will be invested in the upgrading and extension of the Sixth People's Hospital in Guiyang city, increasing the number of beds from 300 to 800 in the hospital. In addition, the hospital is also named as "Guiyang Internet Hospital" now, acting as the basis for Longmaster Information ＆ Technology to practice Internet-based medical care. A subsidiary under Longmaster Information ＆ Technology also proposes to acquire 29.6 percent equities of Guizhou Pharmaceutical Co., Ltd. with 133.2 million yuan in cash to fully control the latter.
Shenzhen H＆T Intelligent Control Co., Ltd. (002402.SZ) proposes to raise no more than 1.03 billion yuan by issuing no more than 101.8 million shares through private placement at 10.11 yuan per share. The raised fund will be invested in the construction of production and operation bases in theYangtze River Delta, the R＆D and industrialization of intelligent hardware products and the construction of intelligent life big data platforms, be used to supplement working capital and make arrangement in the core platforms for the Internet of Things and big data industry for strategy expansion.
○The application of Anhui Water Resources Development Co., Ltd. (600502.SH) for reorganization is unconditionally nodded by China Securities Regulatory Commission.
○Jilin Power Share Co., Ltd. (000875.SZ) announced that as of Dec.1, its controlling shareholder SPIC Jilin Energy ＆ Transportation Corporation totally purchased 17.90 million shares of the company, accounting for 1.23 percent of its total share capital, at an average price of 7.26 yuan per share.
[Financial Reports Express]
○Eoptolink Technology expects growth and proposes high share conversion and dividend in annual report
------
Eoptolink Technology Inc., Ltd. (300502.SZ) expects a growth of 0.58 percent to 11.17 percent in its annual report and also proposes a 20-for-10 conversion of capital surplus into shares combined with 3.5 yuan dividend for every 10 shares.
[Trading Trends]
○Stocks engaged in industrial chain of heavy trucks bought through institutional seats
------
The trading volume ranking list on Dec. 1 shows that stocks engaged in the industrial chain of heavy trucks were bought through multiple institutional seats. Weichai Power Co., Ltd. (000338.SZ) was bought with 197 million yuan through four institutional seats, accounting for 16.4 percent of its intraday turnover; CNHTC Jinan Truck Co., Ltd. (000951.SZ) was bought with 74 million yuan through three institutional seats, accounting for 32.4 percent of its intraday turnover.
Comment: Institutions believed that sales of heavy trucks boomed in November and a short supply was widely seen in multiple places. The main drivers behind are policy push and the release of demand on upgrading. Superimposed with multiple factors like inventory replenishment in the coal market and the increasing transport capacity demanded by e-commerce and express delivery industries, the sales of heavy trucks might skyrocket in the fourth quarter and industrial prosperity might continue. In addition, Weichai Power is among the eligible stocks for the northbound trading of Shenzhen-Hong Kong Stock Connect.
[Trading Alarms]
○StarNeto Technology and Suli to issue shares on Dec.2
------
On Dec.2, BeiJing StarNeto Technology Co., Ltd. (002829.SZ), primarily engaged in the development and application of inertial technology, will issue shares at 17.65 yuan per share with an up-limit of 19,000 shares per account; Suli Co., Ltd. (603585.SH), focusing on chemical products like pesticides, will issue shares at 26.79 yuan per share with an up-limit of 10,000 shares per account.
TOP
○MIIT to support power battery recycling, market scale may explosively grow
○EU to launch cooperative ITS, agricultural modernization speeds up
○Shares of Mogao Industrial Development to further purchased, Transfer of right to vote of Yanhua Smartech still under negotiation
○Huaming Power Equipment signs big orders, Eoptolink Technology expects growth and proposes high share conversion and dividend in annual report
[SSN Focus]
○ MIIT to support power battery recycling, market scale may explosively grow
------
Ministry of Industry and Information Technology (MIIT) on Dec. 1 released exposure draft for recycling and managing power storage battery, and encouraged automobile producers, battery manufacturers, recycling enterprises and comprehensive utilization enterprises to jointly build up and take advantage of wasted power battery recycling network. The MIIT will formulate fiscal ＆ tax preference policy, industrial funds, award management and other incentive policies, research and explore the market-oriented pattern, including scrap value trading of power storage battery, and enhance its recycling.
Comment: Along with high growth of new energy automobile market in China, the market space for wasted power battery recycling will expand. Based on institutional estimation, this market will explosively grow to a scale of 5 billion yuan in 2018 and further to 13.6 and 3.11 billion yuan respectively in 2020 and 2023. GEM Co., Ltd. (002340.SZ), Ningbo Shanshan Co., Ltd. (600884.SH) and other listed companies having deployed in this field will achieve advantages as the first movers.
[SSN Selection]
○ Taxation policy has been clearly specified on Dec. 1 for Shenzhen-Hong Kong Stock Connect program, and individual income tax on spread from investing in H shares will be exempted within next three years.
○ It has been the first time for dominant contract of CSI300 stock index futures to have premium on non-settlement day since 2016, and investors gradually become optimistic on the following market trend.
○ The manufacturing PMI and non-manufacturing commercial activity index increased to 2-yr highs in November respectively, showing that China's economy further stabilizes and consolidates.
○ Tangshan Sanyou Chemical Industries Co., Ltd. (600409.SH) and other sodium carbonate enterprises have increased the factory price again on Dec. 1, and such price has been increased over 30 percent commonly since the fourth quarter, data of 100PPI.com shows.
○ Chen Hong, chairman of SAIC Motor Corporation Limited (600104.SH), revealed that the company's sales for new energy automobile surpassed 28,000 vehicles in 2016, and will excess 80,000 vehicles in next year.
TOP
[Industry Information]
○ EU to launch cooperative ITS, likely to enhance demands for RF components
------
European Commission recently approved a strategy of "cooperative intelligent transportation system (ITS) in Europe", hoping to make European countries commonly allocate such ITS in 2019, and realize the "intelligent communication" between automobiles, automobile and road facilities. The cooperative ITS features in allowing the said mutual-communications based on various communication technologies, and making road users and traffic management share information with effective coordination.
Comment: This system will possibly provide reference for China's developing intelligent traffic. radio frequency (RF) components are critical for wireless connection, research report of Dongxing Securities thought. The said intelligent mutual-communications are likely to incent the demands for RF components. Huizhou Speed Wireless Technology Co., Limited (300322.SZ) is a leading enterprise in China regarding to R＆D for 5G antenna and RF front-end module. Shenzhen Microgate Technology Co., Ltd. (300319.SZ) is a magnate producing chip inductor and LTCC RF components.
○ Agricultural modernization speeds up, technological innovation becomes key point for transformation
------
The 4th Chengdu International Urban Modern Agricultural Expo was held on Dec. 1 with a theme of "three industries' interactions with integrated development", which highlighted discussions about integration of the first, second and third industries related to modern agriculture, agricultural innovation ＆ business start-up, and etc. The alliance development forum for national agricultural technologies and innovations was held during the expo period, and the related association was also established, it learnt. Additionally, Ministry of Agriculture recently held a forum to this respect, and the Minister Han Changbin stressed to speed up agricultural technologies and innovations and promote agricultural modernization.
Comment: China is at a key stage to speed up the promotion for agricultural modernization. Stabilizing the grain production, increasing the revenue, adjusting the structure, improving the quality ＆ efficiency, as well as mode transformation all propose higher requirements for agricultural technologies and innovation. National technological innovation planning for the "13th Five-Year Plan" clearly proposed to develop high-efficient and safe-ecological modern agricultural technologies and intelligent agriculture, which are a core part. Among listed companies, Anhui Huilong Agricultural Means Of Production Co., Ltd. (002556.SZ) positively creates smart and accurate agriculture, and deploys in aviation plant protection service and rural e-commerce business; Shenzhen Batian Ecotypic Engineering Co., Ltd. (002170.SZ) builds up agricultural big data cloud-platform, and improve the planting efficiency.
TOP
[Announcement Interpretation]
○China King Link and Tibet Huafu Information Technology to further purchase shares of Mogao Industrial Development
------
In response to an inquiry letter from Shanghai Stock Exchange, Gansu Mogao Industrial Development Co., Ltd. (600543.SH) claimed that its controlling shareholder Gansu Farms Agribusiness Group Co., Ltd., a state-owned company, vowed to protect its controlling stake and would carefully study on how to consolidate state-owned controlling stake. China King Link Holdings Co., Ltd. and Tibet Huafu Information Technology Co., Ltd., which bought shares of the company through secondary market acquisition to 5 percent limit earlier, totally held 15 percent equities of Mogao Industrial Development. The two companies claim that they will further purchase shares of Mogao Industrial Development with 1million yuan to 200 million yuan in the next 12 months.
○Transfer of right to vote by substantial shareholder of Yanhua Smartech still under negotiation
------
Shanghai Yanhua Smartech Group Co., Ltd. (002178.SZ) reported the progress of the intention of its substantial shareholder Shanghai Yanhua Hi-Tech Co., Ltd. to entrust the right to vote to third-party institutions. At present, the both parties fail to reach agreement on the main clauses concerning the entrusting of the right to vote, and further negotiation is still underway. The company claimed that once the entrusting of the right to vote is finalized, actual controller of the company might change and there will be uncertainties in the company's future development strategy and operation planning.
TOP
○Huaming Power Equipment and etc. sign big orders
------
A fully-owned subsidiary under Huaming Power Equipment Co., Ltd. (002270.SZ) signed contracts for a 100MW photovoltaic power station and a 50MW photovoltaic power station in Nanyang city. The projects total 1.095 billion yuan. The company pocketed total revenue of 603 million yuan in 2015.
In addition, Jiangsu Tongguang Electronic Wire ＆ Cable Co., Ltd. (300265.SZ) won the bidding in China Mobile Communications Corp's 140 million yuan project for procuring ordinary optical cables in 2016; together with its partners, China CAMC Engineering Co., Ltd. (002051.SZ) won the bidding in the Public-Private-Partnership (PPP) project involving small-scale irrigation and water conservancy projects and small and medium-sized reservoirs worth 887 million yuan in Jishou city; China Railway Group Limited (601390.SH) recently won bidding in projects totaling 36.75 billion yuan.
○Longmaster Information ＆ Technology and H＆T Intelligent Control propose expansion of main business through private placement
------
Longmaster Information ＆ Technology Co., Ltd. (300288.SZ) proposes to raise no more than 650 million yuan by issuing no more than 35 million shares through private placement. The raised fund will be invested in the upgrading and extension of the Sixth People's Hospital in Guiyang city, increasing the number of beds from 300 to 800 in the hospital. In addition, the hospital is also named as "Guiyang Internet Hospital" now, acting as the basis for Longmaster Information ＆ Technology to practice Internet-based medical care. A subsidiary under Longmaster Information ＆ Technology also proposes to acquire 29.6 percent equities of Guizhou Pharmaceutical Co., Ltd. with 133.2 million yuan in cash to fully control the latter.
Shenzhen H＆T Intelligent Control Co., Ltd. (002402.SZ) proposes to raise no more than 1.03 billion yuan by issuing no more than 101.8 million shares through private placement at 10.11 yuan per share. The raised fund will be invested in the construction of production and operation bases in theYangtze River Delta, the R＆D and industrialization of intelligent hardware products and the construction of intelligent life big data platforms, be used to supplement working capital and make arrangement in the core platforms for the Internet of Things and big data industry for strategy expansion.
○The application of Anhui Water Resources Development Co., Ltd. (600502.SH) for reorganization is unconditionally nodded by China Securities Regulatory Commission.
○Jilin Power Share Co., Ltd. (000875.SZ) announced that as of Dec.1, its controlling shareholder SPIC Jilin Energy ＆ Transportation Corporation totally purchased 17.90 million shares of the company, accounting for 1.23 percent of its total share capital, at an average price of 7.26 yuan per share.
[Financial Reports Express]
○Eoptolink Technology expects growth and proposes high share conversion and dividend in annual report
------
Eoptolink Technology Inc., Ltd. (300502.SZ) expects a growth of 0.58 percent to 11.17 percent in its annual report and also proposes a 20-for-10 conversion of capital surplus into shares combined with 3.5 yuan dividend for every 10 shares.
[Trading Trends]
○Stocks engaged in industrial chain of heavy trucks bought through institutional seats
------
The trading volume ranking list on Dec. 1 shows that stocks engaged in the industrial chain of heavy trucks were bought through multiple institutional seats. Weichai Power Co., Ltd. (000338.SZ) was bought with 197 million yuan through four institutional seats, accounting for 16.4 percent of its intraday turnover; CNHTC Jinan Truck Co., Ltd. (000951.SZ) was bought with 74 million yuan through three institutional seats, accounting for 32.4 percent of its intraday turnover.
Comment: Institutions believed that sales of heavy trucks boomed in November and a short supply was widely seen in multiple places. The main drivers behind are policy push and the release of demand on upgrading. Superimposed with multiple factors like inventory replenishment in the coal market and the increasing transport capacity demanded by e-commerce and express delivery industries, the sales of heavy trucks might skyrocket in the fourth quarter and industrial prosperity might continue. In addition, Weichai Power is among the eligible stocks for the northbound trading of Shenzhen-Hong Kong Stock Connect.
[Trading Alarms]
○StarNeto Technology and Suli to issue shares on Dec.2
------
On Dec.2, BeiJing StarNeto Technology Co., Ltd. (002829.SZ), primarily engaged in the development and application of inertial technology, will issue shares at 17.65 yuan per share with an up-limit of 19,000 shares per account; Suli Co., Ltd. (603585.SH), focusing on chemical products like pesticides, will issue shares at 26.79 yuan per share with an up-limit of 10,000 shares per account.
TOP
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