[Today's Guide]
○Electric logistics vehicles covered in promotion catalogue for 1st time, industrial development to accelerate
○Price of polyurethane fiber hikes around 3 pct, new catalogues for civil-military integration unveiled
○Shares of Guangdong Jiaying Pharmaceutical transferred with premium, Sunrain Solar Energy to acquire 75 pct equities of Sacon Electric with RMB750 mln
○Shares of Kangde Xin Composite Material bought by subsidiary under Zhongzhi Enterprise Group to 5 pct limit, Sunway Communication to launch employee shareholding plan
[SSN Focus]
○Electric logistics vehicles covered in promotion catalogue for 1st time, industrial development to accelerate
------
On Dec. 2, the Ministry of Industry and Information Technology (MIIT) rolled out the catalogue of recommended vehicle models involved in the promotion of new energy vehicles (4th batch). The catalogue covers 678 vehicle models and 176 of them are all-electric logistics vehicles. Producers include Dongfeng Motor Co., Ltd., Foton Motor Inc. and Changan Automobile Company Limited.
Comment: It is the first time for electric logistics vehicles to be covered in the catalogue. Since logistics vehicles are usually driven on fixed routes, the application of new energy power will make it easier for charging and also greatly reduce the cost of fuel. Along with the rapid expansion of express business, electric logistics vehicles have gradually developed into a new growth point of the vehicle industry. Research reports by securities traders believe that electric logistics vehicles will be qualified for obtaining national subsidy after being covered in the catalogue and the sector might see a market scale of 260 billion yuan in 2020. As to listed companies, Dongfeng Automobile Co., Ltd. (600006.SH) holds abundant orders for electric logistics vehicles, and institutions are rosy about further increase of orders; Shanghai Cooltech Power Co., Ltd. (300153.SZ) actively makes arrangement in the operation of electric logistics vehicles; the motor products produced by Zhejiang Founder Motor Co., Ltd. (002196.SZ) are applicable for multiple types of electric logistics vehicles.
[SSN Selection]
○Liu Shiyu, chairman of China Securities Regulatory Commission, remarked on Dec.3 that purchasing shares of listed companies through secondary market acquisition to 5 percent limit brings positive effects in some aspects, but funds with unknown source are not allowed in leveraged acquisition.
○On Dec.2, China Securities Regulatory Commission gave green night to the IPO applications of 13 companies with Anhui Province Natural Gas Development Co., Ltd. included; the IPO applications of six companies with China Galaxy Securities Co., Ltd. included will be reviewed on Dec.7.
○Shanghai Stock Exchange and Shenzhen Stock Exchange have lowered the conversion rate of stocks with static P/E ratio above 300 times or below 0 to 0 percent in margin trading (allowing investors to borrow money for stock purchases) and stock lending (short selling).
○The surveyed industry insiders indicated that the preferential tax policy for small-displacement vehicles might be continued after expiration. But the preferential margins might be narrowed from 10 percent to 7.5 percent.
○As reported by China Business Journal, the 13th five-year plan for the energy conservation and environment protection industry might be rolled out recently. The industrial added value might take up around 3 percent of national GDP.
○Foresea Life Insurance Co., Ltd. indicated that its shareholding of Zhuhai Gree Electric Appliances, Inc. (000651.SZ) has not reached 5 percent yet and it has no intention to get involved in the operation and management of the company; China Vanke Co., Ltd. (000002.SZ) claimed that its main shareholders did not reduce their shareholding in the bulk trading seen on Nov.29.
TOP
[Industry Information]
○Prices of polyurethane fiber raised collectively, inventory pressure greatly reduced
------
Data from www.100ppi.com shows that main polyurethane fiber producers raised the price of polyurethane fiber by 1,000 yuan per ton, or 3 percent, on Dec.2. It is learnt that the average inventory in the industry has been decreased from 60 days earlier to 30-35 days. Big producers are actively destocking. Relevant manufacturers indicated that the market might see a price hike of polyurethane fiber in December as inventory pressure diminishes.
Comment: Driving by rising cost and improving demand, the polyurethane fiber industry enjoys strong expectation on price hike. As to A-share companies, the polyurethane fiber project with annual capacity of 60,000 tons under Zhejiang Huafon Spandex Co., Ltd. (002064.SZ) has fully reached designed capacity in July; semiyearly report of Yantai Tayho Advanced Materials Co., Ltd. (002254.SZ) suggests that polyurethane fiber business contributes 70 percent of the company's revenue.
○New catalogues for civil-military integration unveiled
------
The Ministry of Industry and Information Technology (MIIT) and the State Administration of Science, Technology and Industry for National Defense recently jointly released the promotion catalogue of military technologies allowed for civil use and the recommendation catalogue of military technology and products participated in by civil forces. The first catalogue focuses on new materials, intelligent manufacturing, electronic information, new-generation information technology, high-end equipment, new energy and environmental protection. 160 items are included. The second catalogue, covering 155 items, focuses on meeting the demand on manufacturing military equipment and is engaged in 14 areas like technology and products. The two catalogues have become important ways to expand the channel of civil-military information exchange as well as advance two-way transformation of advanced technology and products.
TOP
[Announcement Interpretation]
○Controlling shareholder of Guangdong Jiaying Pharmaceutical transfers shares at premium of 22 pct
------
Huang Xiaobiao, controlling shareholder of Guangdong Jiaying Pharmaceutical Co., Ltd. (002198.SZ), entered into an agreement with Shenzhen Tiger Remit Asset Management Co., Ltd. Huang will transfer 57.20 million tradable shares, accounting for 11.27 percent of the company's total share capital, to Tiger Remit Asset Management. The transaction will be done with 1.047 billion yuan at 18.30 yuan per share, a premium of 22 percent from the company's stock price of 15 yuan per share before trading suspension. Upon completion of the transaction, the shareholding of Tiger Remit Asset Management and Huang will record 11.27 percent and 0.17 percent, respectively.
○Sunrain Solar Energy to acquire 75 pct equities of Sacon Electric with RMB750 mln
------
Jiangsu Sunrain Solar Energy Co., ltd. (603366.SH) plans to acquire 75 percent equities of Sacon Electric Co., Ltd. with cash no more than 750 million yuan. Sacon Electronics will acquire 75 percent equities of Sacon Water Heater and 49 percent equities of Sacon Marketing currently held by its controlling shareholder Sacon Group, so as to obtain 100 percent equities of the mentioned two companies respectively. Sacon Electric, Sacon Water Heater and Sacon Marketing have achieved a total revenue of 617 million yuan since Jan. 10, with a net profit of 75 million yuan after adjustment. The target commits to gain a net profit no less than 85 million, 102 million and 122 million yuan respectively from 2016 to 2018.
TOP
○Shares of Kangde Xin Composite Material bought by subsidiary under Zhongzhi Enterprise Group to 5 pct limit
------
Kangde Xin Composite Material Group Co., Ltd. (002450.SZ) received a notice from Zhongtai Chuangying Asset Management that the latter has accumulatively increased 176 million shares in the listed company since Nov. 16 to Dec. 2, 2016, accounting for 5 percent equities, which reached a placarded threshold. Zhongtai Chuangying Asset Management indicated that its move aims to being a strategic investor holding these equities for a long term, instead of pursuing for controlling status, and it may continue to increase the shareholdings in next 12 months. Zhongtai Specialty Financing, wholly owning Zhongtai Chuangying Asset Management, is a subsidiary under Zhongzhi Enterprise Group Co., Ltd.
○Sunway Communication to launch employee shareholding plan scaled in RMB1.3 bln
------
Shenzhen Sunway Communication Co., Ltd. (300136.SZ) plans to launch the employee shareholding plan with a scale of 1.3 billion yuan to no more than 50 employees. Especially, the upper limit for funds raised by the employees is 650 million yuan, with a lockup period of 12 months. After launch, Truvalue Asset Management will be entrusted to build up specialized and multi-client asset management plan named as Truvalue Fund-Sunway Communication-Hengle No.1 to manage this employee shareholding plan. The said asset management plan will set progressive and priority shares based on a ratio of 1:1 and with upper limit of 1.3 billion shares to acquire the listed company's shares. Based on the upper scale limit of 1.3 billion shares and listed company's stock price of 27.59 yuan per share on Dec. 2, 47,117,100 shares can be acquired, taking up 4.92 percent of the total equities.
Additionally, Jiangsu HopeRun Software Co., Ltd. (300339.SZ) plans to launch employee shareholding plan scaled in 340 million yuan. Especially, the upper limit of 170 million yuan is set for phase one, priority and inferior levels will be set based on a ratio of 1:1, the upper limit of 340 million yuan is set for the asset management plan, and this plan can acquire 2.86 percent equities of the listed company based on the stock price at the closing of Dec. 1.
○Restructuring schemes of Shenzhen Yinghe Technology Co., Ltd. (300457.SZ) and Kangyue Technology Co., Ltd. (300391.SZ) have been unconditionally approved by China Securities Regulatory Commission, with that of Xinjiang Dushanzi Tianli High ＆ New Tech Co., Ltd, P.R.C. (600339.SH) conditionally approved.
○The controlling shareholder of Yunnan Energy Investment Co., Ltd. (002053.SZ) has increased 5.485 million shareholdings in the listed company since Nov. 22 to Dec. 2, with an average price of 17.17 yuan per share.
○Dongguan Eontec Co., Ltd. (300328.SZ) plans to raise a fund no more than 680 million yuan through private placement no more than 50 million shares, and the raised fund will be invested in light alloy micro-die-casting production base, industrialized production expansion project for amorphous alloy (liquid metal) precision structural components, and amorphous alloy (liquid metal) R＆D center.
[Financial Reports Express]
○Dalian Insulator Group proposes high share conversion and dividend
------
The controlling shareholder and actual controller of Dalian Insulator Group Co., Ltd. (002606.SZ) propose a 10-for-10 conversion of capital surplus into shares combined with 1 yuan dividend for every 10 shares in its annual report.
[Trading Alarms]
○A-Zenith Furniture and Yuto Packaging Technology to issue new shares on Dec. 5
------
The offering price and upper subscription limit are set as 7.79 yuan per share and 21,000 shares respectively for A-Zenith Furniture Co., Ltd. (603389.SH), which is mainly engaged in furniture products; 36.77 yuan per share and 12,000 shares for Shenzhen Yuto Packaging Technology Co., Ltd. (002831.SZ), mainly engaged in paper printing and packaging products.
[Weekly Review]
○Investment towards orientation with smallest resistance
------
In terms of mastering the short-term market trend, a senior strategic analyst comes to a typical conclusion that investors should put funds in a way with the smallest resistance.
Recently, "a hot winter" of the A-share market is a case. Real estate market suffers from policy restrictions, Treasury bond market is blocked by economic recovery. As these two hot markets are forced to cool down, massive funds suddenly change their investment orientation. Meanwhile, pushed by constant inflow for blue chips from tangible and intangible funds, A-share market indexes finally rebound. Ultimately, A-share market faces the smallest medium-long pressure and will achieve an uptrend.
For detailed sectors, growth stocks are disturbed by leading stocks, and stocks with shareholdings bought to a placarded threshold of 5 percent may be pressed by policies. Regarding to capital factor, blue chips with high dividend and low valuation face the smallest pressure and achieve the strongest drive. Such trend may still be hard to change based on expectation.
SSN focused on sectors supported by performance and policies in the past week, and information was favorably accepted by the market, such as rising birth rate pushed by two-child policy and higher price of carbon black. In the future, we will continue to make more efforts.
TOP
○Electric logistics vehicles covered in promotion catalogue for 1st time, industrial development to accelerate
○Price of polyurethane fiber hikes around 3 pct, new catalogues for civil-military integration unveiled
○Shares of Guangdong Jiaying Pharmaceutical transferred with premium, Sunrain Solar Energy to acquire 75 pct equities of Sacon Electric with RMB750 mln
○Shares of Kangde Xin Composite Material bought by subsidiary under Zhongzhi Enterprise Group to 5 pct limit, Sunway Communication to launch employee shareholding plan
[SSN Focus]
○Electric logistics vehicles covered in promotion catalogue for 1st time, industrial development to accelerate
------
On Dec. 2, the Ministry of Industry and Information Technology (MIIT) rolled out the catalogue of recommended vehicle models involved in the promotion of new energy vehicles (4th batch). The catalogue covers 678 vehicle models and 176 of them are all-electric logistics vehicles. Producers include Dongfeng Motor Co., Ltd., Foton Motor Inc. and Changan Automobile Company Limited.
Comment: It is the first time for electric logistics vehicles to be covered in the catalogue. Since logistics vehicles are usually driven on fixed routes, the application of new energy power will make it easier for charging and also greatly reduce the cost of fuel. Along with the rapid expansion of express business, electric logistics vehicles have gradually developed into a new growth point of the vehicle industry. Research reports by securities traders believe that electric logistics vehicles will be qualified for obtaining national subsidy after being covered in the catalogue and the sector might see a market scale of 260 billion yuan in 2020. As to listed companies, Dongfeng Automobile Co., Ltd. (600006.SH) holds abundant orders for electric logistics vehicles, and institutions are rosy about further increase of orders; Shanghai Cooltech Power Co., Ltd. (300153.SZ) actively makes arrangement in the operation of electric logistics vehicles; the motor products produced by Zhejiang Founder Motor Co., Ltd. (002196.SZ) are applicable for multiple types of electric logistics vehicles.
[SSN Selection]
○Liu Shiyu, chairman of China Securities Regulatory Commission, remarked on Dec.3 that purchasing shares of listed companies through secondary market acquisition to 5 percent limit brings positive effects in some aspects, but funds with unknown source are not allowed in leveraged acquisition.
○On Dec.2, China Securities Regulatory Commission gave green night to the IPO applications of 13 companies with Anhui Province Natural Gas Development Co., Ltd. included; the IPO applications of six companies with China Galaxy Securities Co., Ltd. included will be reviewed on Dec.7.
○Shanghai Stock Exchange and Shenzhen Stock Exchange have lowered the conversion rate of stocks with static P/E ratio above 300 times or below 0 to 0 percent in margin trading (allowing investors to borrow money for stock purchases) and stock lending (short selling).
○The surveyed industry insiders indicated that the preferential tax policy for small-displacement vehicles might be continued after expiration. But the preferential margins might be narrowed from 10 percent to 7.5 percent.
○As reported by China Business Journal, the 13th five-year plan for the energy conservation and environment protection industry might be rolled out recently. The industrial added value might take up around 3 percent of national GDP.
○Foresea Life Insurance Co., Ltd. indicated that its shareholding of Zhuhai Gree Electric Appliances, Inc. (000651.SZ) has not reached 5 percent yet and it has no intention to get involved in the operation and management of the company; China Vanke Co., Ltd. (000002.SZ) claimed that its main shareholders did not reduce their shareholding in the bulk trading seen on Nov.29.
TOP
[Industry Information]
○Prices of polyurethane fiber raised collectively, inventory pressure greatly reduced
------
Data from www.100ppi.com shows that main polyurethane fiber producers raised the price of polyurethane fiber by 1,000 yuan per ton, or 3 percent, on Dec.2. It is learnt that the average inventory in the industry has been decreased from 60 days earlier to 30-35 days. Big producers are actively destocking. Relevant manufacturers indicated that the market might see a price hike of polyurethane fiber in December as inventory pressure diminishes.
Comment: Driving by rising cost and improving demand, the polyurethane fiber industry enjoys strong expectation on price hike. As to A-share companies, the polyurethane fiber project with annual capacity of 60,000 tons under Zhejiang Huafon Spandex Co., Ltd. (002064.SZ) has fully reached designed capacity in July; semiyearly report of Yantai Tayho Advanced Materials Co., Ltd. (002254.SZ) suggests that polyurethane fiber business contributes 70 percent of the company's revenue.
○New catalogues for civil-military integration unveiled
------
The Ministry of Industry and Information Technology (MIIT) and the State Administration of Science, Technology and Industry for National Defense recently jointly released the promotion catalogue of military technologies allowed for civil use and the recommendation catalogue of military technology and products participated in by civil forces. The first catalogue focuses on new materials, intelligent manufacturing, electronic information, new-generation information technology, high-end equipment, new energy and environmental protection. 160 items are included. The second catalogue, covering 155 items, focuses on meeting the demand on manufacturing military equipment and is engaged in 14 areas like technology and products. The two catalogues have become important ways to expand the channel of civil-military information exchange as well as advance two-way transformation of advanced technology and products.
TOP
[Announcement Interpretation]
○Controlling shareholder of Guangdong Jiaying Pharmaceutical transfers shares at premium of 22 pct
------
Huang Xiaobiao, controlling shareholder of Guangdong Jiaying Pharmaceutical Co., Ltd. (002198.SZ), entered into an agreement with Shenzhen Tiger Remit Asset Management Co., Ltd. Huang will transfer 57.20 million tradable shares, accounting for 11.27 percent of the company's total share capital, to Tiger Remit Asset Management. The transaction will be done with 1.047 billion yuan at 18.30 yuan per share, a premium of 22 percent from the company's stock price of 15 yuan per share before trading suspension. Upon completion of the transaction, the shareholding of Tiger Remit Asset Management and Huang will record 11.27 percent and 0.17 percent, respectively.
○Sunrain Solar Energy to acquire 75 pct equities of Sacon Electric with RMB750 mln
------
Jiangsu Sunrain Solar Energy Co., ltd. (603366.SH) plans to acquire 75 percent equities of Sacon Electric Co., Ltd. with cash no more than 750 million yuan. Sacon Electronics will acquire 75 percent equities of Sacon Water Heater and 49 percent equities of Sacon Marketing currently held by its controlling shareholder Sacon Group, so as to obtain 100 percent equities of the mentioned two companies respectively. Sacon Electric, Sacon Water Heater and Sacon Marketing have achieved a total revenue of 617 million yuan since Jan. 10, with a net profit of 75 million yuan after adjustment. The target commits to gain a net profit no less than 85 million, 102 million and 122 million yuan respectively from 2016 to 2018.
TOP
○Shares of Kangde Xin Composite Material bought by subsidiary under Zhongzhi Enterprise Group to 5 pct limit
------
Kangde Xin Composite Material Group Co., Ltd. (002450.SZ) received a notice from Zhongtai Chuangying Asset Management that the latter has accumulatively increased 176 million shares in the listed company since Nov. 16 to Dec. 2, 2016, accounting for 5 percent equities, which reached a placarded threshold. Zhongtai Chuangying Asset Management indicated that its move aims to being a strategic investor holding these equities for a long term, instead of pursuing for controlling status, and it may continue to increase the shareholdings in next 12 months. Zhongtai Specialty Financing, wholly owning Zhongtai Chuangying Asset Management, is a subsidiary under Zhongzhi Enterprise Group Co., Ltd.
○Sunway Communication to launch employee shareholding plan scaled in RMB1.3 bln
------
Shenzhen Sunway Communication Co., Ltd. (300136.SZ) plans to launch the employee shareholding plan with a scale of 1.3 billion yuan to no more than 50 employees. Especially, the upper limit for funds raised by the employees is 650 million yuan, with a lockup period of 12 months. After launch, Truvalue Asset Management will be entrusted to build up specialized and multi-client asset management plan named as Truvalue Fund-Sunway Communication-Hengle No.1 to manage this employee shareholding plan. The said asset management plan will set progressive and priority shares based on a ratio of 1:1 and with upper limit of 1.3 billion shares to acquire the listed company's shares. Based on the upper scale limit of 1.3 billion shares and listed company's stock price of 27.59 yuan per share on Dec. 2, 47,117,100 shares can be acquired, taking up 4.92 percent of the total equities.
Additionally, Jiangsu HopeRun Software Co., Ltd. (300339.SZ) plans to launch employee shareholding plan scaled in 340 million yuan. Especially, the upper limit of 170 million yuan is set for phase one, priority and inferior levels will be set based on a ratio of 1:1, the upper limit of 340 million yuan is set for the asset management plan, and this plan can acquire 2.86 percent equities of the listed company based on the stock price at the closing of Dec. 1.
○Restructuring schemes of Shenzhen Yinghe Technology Co., Ltd. (300457.SZ) and Kangyue Technology Co., Ltd. (300391.SZ) have been unconditionally approved by China Securities Regulatory Commission, with that of Xinjiang Dushanzi Tianli High ＆ New Tech Co., Ltd, P.R.C. (600339.SH) conditionally approved.
○The controlling shareholder of Yunnan Energy Investment Co., Ltd. (002053.SZ) has increased 5.485 million shareholdings in the listed company since Nov. 22 to Dec. 2, with an average price of 17.17 yuan per share.
○Dongguan Eontec Co., Ltd. (300328.SZ) plans to raise a fund no more than 680 million yuan through private placement no more than 50 million shares, and the raised fund will be invested in light alloy micro-die-casting production base, industrialized production expansion project for amorphous alloy (liquid metal) precision structural components, and amorphous alloy (liquid metal) R＆D center.
[Financial Reports Express]
○Dalian Insulator Group proposes high share conversion and dividend
------
The controlling shareholder and actual controller of Dalian Insulator Group Co., Ltd. (002606.SZ) propose a 10-for-10 conversion of capital surplus into shares combined with 1 yuan dividend for every 10 shares in its annual report.
[Trading Alarms]
○A-Zenith Furniture and Yuto Packaging Technology to issue new shares on Dec. 5
------
The offering price and upper subscription limit are set as 7.79 yuan per share and 21,000 shares respectively for A-Zenith Furniture Co., Ltd. (603389.SH), which is mainly engaged in furniture products; 36.77 yuan per share and 12,000 shares for Shenzhen Yuto Packaging Technology Co., Ltd. (002831.SZ), mainly engaged in paper printing and packaging products.
[Weekly Review]
○Investment towards orientation with smallest resistance
------
In terms of mastering the short-term market trend, a senior strategic analyst comes to a typical conclusion that investors should put funds in a way with the smallest resistance.
Recently, "a hot winter" of the A-share market is a case. Real estate market suffers from policy restrictions, Treasury bond market is blocked by economic recovery. As these two hot markets are forced to cool down, massive funds suddenly change their investment orientation. Meanwhile, pushed by constant inflow for blue chips from tangible and intangible funds, A-share market indexes finally rebound. Ultimately, A-share market faces the smallest medium-long pressure and will achieve an uptrend.
For detailed sectors, growth stocks are disturbed by leading stocks, and stocks with shareholdings bought to a placarded threshold of 5 percent may be pressed by policies. Regarding to capital factor, blue chips with high dividend and low valuation face the smallest pressure and achieve the strongest drive. Such trend may still be hard to change based on expectation.
SSN focused on sectors supported by performance and policies in the past week, and information was favorably accepted by the market, such as rising birth rate pushed by two-child policy and higher price of carbon black. In the future, we will continue to make more efforts.
TOP
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