[Today's Guide]
○ Three-year action guidance on intelligent sensor to release, industry to see rapid development
○ Panasonic to develop vehicle electronics, technical giants conduct large mergers
○ Eternal Asia Supply Chain Management proposes to launch RMB1 bln ESOP, Actual controller of Hongdou Industrial proposes to increase shareholding
○ Shareholder increase holding in Guanghe landscape Culture Communication， Dragon Pipe Manufacturing proposes high share conversion and dividend
[SSN Focus]
○ Three-year action guidance on intelligent sensor to release, industry to see rapid development
------
SSN learnt from the Ministry of Industry and Information Technology (MIIT) that the three-year action guidance on the intelligent sensor industry (2017 to 2019) prepared by the MIIT is expected to be released in the first quarter of 2017. The policy will focus on the intelligentialization of sensors and set the target of the industrial development and the direction of technical development. It will focus on market applications in the industrial development paths and key policy supports. The MIIT may introduce funds for the sensor industry in the future.
Comment: The three major factors will drive the rapid development of the driving sensor industry. In terms of the market, the vehicle, high-speed rail and consumer electronics will bring huge markets to sensors. In terms of technologies, the MEMS and other technologies are increasingly mature. In terms of policies, besides the three-year action guidance, the 13th Five-year Plan also listed advanced sensors as a strategic development priority. Experts believe that the total output of sensors in the following five years will exceed 1 trillion and the MEMS sensor industry will see a size of more than 1 trillion U.S. dollars in 2033. Suzhou Good-ark Electronics Co., Ltd. (002079.SZ), Tongfu Microelectronics Co., Ltd. (002156.SZ), Navtech Inc. (300456.SZ) and other companies with sensor related businesses will catch more attention from institutes.
[SSN Selection]
○ The Leading Group for Overall Reform held the 30th meeting on Dec. 5 and approved the plan on the transformation of functions of the State Council and the State-owned Assets Supervision and Administration Commission (SASAC) with the focus on capitals management and other documents.
○ The State Council released the 13th Five-year Plan on the protection of the ecological environment, requiring preparing the construction plans on the prevention of air, water and soil pollution.
○ Five ministries, including the Ministry of Industry and Information Technology (MIIT), will conduct special inspections on the security of new energy vehicles and the implementation of the emission upgrading of vehicles soon.
○ The work conference on national agricultural reclamation kicked off on Dec. 5. Han Changbin, head of the Ministry of Agriculture, proposes to make breakthroughs in four aspects in the agricultural reclamation reform next year.
○ Foresea Life Insurance was required to suspend universal insurance business by the China Insurance Regulatory Commission (CIRC) due to the incomplete rectification. It is also prohibited to apply for new products in three months due to the problems in products development and management.
TOP
[Industry Information]
○ Panasonic to develop vehicle electronics, technical giants conduct large mergers
------
It is reported that Panasonic proposes to acquire ZKW, a European developer of lighting system for vehicles, with no more than 1 billion U.S. dollars to advance into the vehicle electronics market. The negotiation on the acquisition is under the final stage. Besides Panasonic, Samsung also announced last month that it would acquire Harman International, a U.S. supplier of vehicle components, with 8 billion U.S. dollars. Harman International is principally engaged in the manufacturing of high-end acoustics. Qualcomm acquired NXP, a vehicle semiconductor company, with 47 billion U.S. dollars last year.
Comment: Signs show that the terminal for vehicle is the next mobile access to mobile Internet after mobilephones. Institutes estimate that driven by the vehicle intelligentialization, the penetration rate of vehicle electronics will improve from the current 30 percent to over 50 percent by 2020. The Internet of Things for vehicles, ancillary driving systems and sensor and other industries will see rapid development. In terms of listed companies, Changzhou Xingyu Automotive Lighting Systems Co., Ltd. (601799.SH) is actively advancing the intelligent vehicle light business. Ningbo Joyson Electronic Corp. (600699.SH) is developing global vehicle electronics business through the acquisition of German and U.S. companies. Zhejiang Vie Science ＆ Technology Co., Ltd. (002590.SZ) is developing the ADAS industry.
TOP
[Announcement Interpretation]
○ Eternal Asia Supply Chain Management proposes to launch RMB1 bln ESOP
------
Eternal Asia Supply Chain Management Ltd. (002183.SZ) proposes to launch employee stock ownership phase I assembled funds trust plan, and set up the senior and subprime units based on 1:1. The upper limit of the total scale is 1 billion units. The company's no more than 400 employees (including 7 directors, supervisors and senior management) propose to raise no more than 500 million yuan to subscribe the subprime units in full. Eternal Asia Group, controlling shareholder of the company, provides joint guarantee warranty for the principle and interest of the senior units. The plan will obtain and hold shares of the company through secondary market acquisition or block trade with specific products. Based on the upper limit of 1 billion yuan and the latest price of the company of 11.81 yuan a share, the plan can buy in 84.67 million shares of the company, representing 4 percent of the total share capital of the company.
○ Actual controller of Hongdou Industrial proposes to increase shareholding
------
Controlling shareholder and actual controller of Jiangsu Hongdou Industrial Co., Ltd. (600400.SH) proposes to increase shareholding of no less than 1 percent and no more than 3 percent of the total share capital the company in the next 12 months from Dec. 6. The reason for increasing shareholding is because it is recognize the value of the company and confident in the future development of the company.
In addition, actual controller of KingClean Electric Co., Ltd. (603355.SH) has increased in total 30.6 million shares of the company from Sept. 20 to Dec. 5.
TOP
○ Shareholder increase holding in Guanghe landscape Culture Communication
------
Zhou Xiaoyan, Zhao Mingxian, Lin Ningyao, Wu Taijiao, Shenzhen Paodegap Co., Ltd., who are shareholders of Guanghe landscape Culture Communication Co., Ltd, ShanXi (600234.SH) and parties acting in concert, have in total held 20,244,600 shares of the company from Sept. 21 to Dec. 5, and the percentage of shareholding increased from 5 percent to 10 percent. In the next 12 month, these parties propose to increase holding another 1 billion shares of the company.
○ China Guodian Corporation, actual controller of Ningxia Younglight Chemicals Co., Ltd. (000635.SZ), received opinions from the State Assets Supervision and Administration Commission (SASAC) under the State Council that the SASAC approved the transfer of 51.25 percent of the company by the shareholder Younglight Group. The transfer price is no more than 19.52 yuan per share.
○ KPC Pharmaceuticals, Inc. (600422.SH) invests 3 million yuan to acquire 9.91 percent equities and relevant interests of a US company RiMO. The two parties propose to work together to develop the Chinese market for RiMO's products. RiMO's new "radiotherapy - radiation dynamic" technology is a high-efficient, revolutionary cancer treatment technology. It is the first of its kind in the world
[Financial Reports Express]
○ Dragon Pipe Manufacturing proposes high share conversion and dividend
------
Actual controller of Zhejiang Dragon Pipe Manufacturing Co., Ltd. (002619.SZ) proposes 15-for-10 conversion of capital surplus into shares in the annual report.
[Trading Trends]
○ Northbound Trading Link under Shenzhen-Hong Kong Stock Connect saw huge capital flow on the first day, favoring "white-horse" stocks
------
On the first day of the opening of Shenzhen-Hong Kong Stock Connect, the Shenzhen Stock Exchange's disclosure shows that the Northbound Trading Link has bought in total 2,669 million yuan worth of shares, and the Southbound Trading Link has seen net capital inflow of 881 million yuan. The Northbound Trading Link has higher enthusiasm than Southbound Trading Link. Various institutions interviewed say that the trading of the Northbound Trading Link is more active than expectation. "White-horse" stocks on the Shenzhen Stock Exchange are attractive to foreign capitals.
As to individual stocks, Gree Electric Appliances, Inc. of Zhuhai (000651.SZ), Midea Group Co., Ltd. (000333.SZ) and Hangzhou Hikvision Digital Technology Co., Ltd. (002415.SZ) ranked the top in terms of trading turnover through the Northbound Trading Link. The trading turnover of Gree Electric Appliances through the Northbound Trading Link amounted to 372 million yuan, ranking the first in the top five buy-in seats of the trading volume ranking list of the stock. In addition, Weichai Power Co., Ltd. (000338.SZ), BOE Technology Group Co., Ltd. (000725.SZ), Ping An Bank Co., Ltd. (000001.SZ) and Wuliangye Yibin Co., Ltd. (000858.SZ) also saw over 60 million yuan capital inflow.
[Trading Alarms]
○ Wujin Stainless Steel Pipe Group and Flag Chemical Industry IPO offers for subscription on Dec.6
------
Jiangsu Wujin Stainless Steel Pipe Group Co., Ltd. (732878.SZ) will offer for subscription at 14.87 yuan per share. The upper limit for each applicant is 20,000 shares. The company is primarily engaged in stainless pipes. Jiangsu Flag Chemical Industry Co., Ltd. (300575.SZ) will offer for subscription at 22.29 yuan per share. The upper limit for subscription is 18,000 shares. The company is primarily engaged in chemical products such as pesticide.
TOP
○ Three-year action guidance on intelligent sensor to release, industry to see rapid development
○ Panasonic to develop vehicle electronics, technical giants conduct large mergers
○ Eternal Asia Supply Chain Management proposes to launch RMB1 bln ESOP, Actual controller of Hongdou Industrial proposes to increase shareholding
○ Shareholder increase holding in Guanghe landscape Culture Communication， Dragon Pipe Manufacturing proposes high share conversion and dividend
[SSN Focus]
○ Three-year action guidance on intelligent sensor to release, industry to see rapid development
------
SSN learnt from the Ministry of Industry and Information Technology (MIIT) that the three-year action guidance on the intelligent sensor industry (2017 to 2019) prepared by the MIIT is expected to be released in the first quarter of 2017. The policy will focus on the intelligentialization of sensors and set the target of the industrial development and the direction of technical development. It will focus on market applications in the industrial development paths and key policy supports. The MIIT may introduce funds for the sensor industry in the future.
Comment: The three major factors will drive the rapid development of the driving sensor industry. In terms of the market, the vehicle, high-speed rail and consumer electronics will bring huge markets to sensors. In terms of technologies, the MEMS and other technologies are increasingly mature. In terms of policies, besides the three-year action guidance, the 13th Five-year Plan also listed advanced sensors as a strategic development priority. Experts believe that the total output of sensors in the following five years will exceed 1 trillion and the MEMS sensor industry will see a size of more than 1 trillion U.S. dollars in 2033. Suzhou Good-ark Electronics Co., Ltd. (002079.SZ), Tongfu Microelectronics Co., Ltd. (002156.SZ), Navtech Inc. (300456.SZ) and other companies with sensor related businesses will catch more attention from institutes.
[SSN Selection]
○ The Leading Group for Overall Reform held the 30th meeting on Dec. 5 and approved the plan on the transformation of functions of the State Council and the State-owned Assets Supervision and Administration Commission (SASAC) with the focus on capitals management and other documents.
○ The State Council released the 13th Five-year Plan on the protection of the ecological environment, requiring preparing the construction plans on the prevention of air, water and soil pollution.
○ Five ministries, including the Ministry of Industry and Information Technology (MIIT), will conduct special inspections on the security of new energy vehicles and the implementation of the emission upgrading of vehicles soon.
○ The work conference on national agricultural reclamation kicked off on Dec. 5. Han Changbin, head of the Ministry of Agriculture, proposes to make breakthroughs in four aspects in the agricultural reclamation reform next year.
○ Foresea Life Insurance was required to suspend universal insurance business by the China Insurance Regulatory Commission (CIRC) due to the incomplete rectification. It is also prohibited to apply for new products in three months due to the problems in products development and management.
TOP
[Industry Information]
○ Panasonic to develop vehicle electronics, technical giants conduct large mergers
------
It is reported that Panasonic proposes to acquire ZKW, a European developer of lighting system for vehicles, with no more than 1 billion U.S. dollars to advance into the vehicle electronics market. The negotiation on the acquisition is under the final stage. Besides Panasonic, Samsung also announced last month that it would acquire Harman International, a U.S. supplier of vehicle components, with 8 billion U.S. dollars. Harman International is principally engaged in the manufacturing of high-end acoustics. Qualcomm acquired NXP, a vehicle semiconductor company, with 47 billion U.S. dollars last year.
Comment: Signs show that the terminal for vehicle is the next mobile access to mobile Internet after mobilephones. Institutes estimate that driven by the vehicle intelligentialization, the penetration rate of vehicle electronics will improve from the current 30 percent to over 50 percent by 2020. The Internet of Things for vehicles, ancillary driving systems and sensor and other industries will see rapid development. In terms of listed companies, Changzhou Xingyu Automotive Lighting Systems Co., Ltd. (601799.SH) is actively advancing the intelligent vehicle light business. Ningbo Joyson Electronic Corp. (600699.SH) is developing global vehicle electronics business through the acquisition of German and U.S. companies. Zhejiang Vie Science ＆ Technology Co., Ltd. (002590.SZ) is developing the ADAS industry.
TOP
[Announcement Interpretation]
○ Eternal Asia Supply Chain Management proposes to launch RMB1 bln ESOP
------
Eternal Asia Supply Chain Management Ltd. (002183.SZ) proposes to launch employee stock ownership phase I assembled funds trust plan, and set up the senior and subprime units based on 1:1. The upper limit of the total scale is 1 billion units. The company's no more than 400 employees (including 7 directors, supervisors and senior management) propose to raise no more than 500 million yuan to subscribe the subprime units in full. Eternal Asia Group, controlling shareholder of the company, provides joint guarantee warranty for the principle and interest of the senior units. The plan will obtain and hold shares of the company through secondary market acquisition or block trade with specific products. Based on the upper limit of 1 billion yuan and the latest price of the company of 11.81 yuan a share, the plan can buy in 84.67 million shares of the company, representing 4 percent of the total share capital of the company.
○ Actual controller of Hongdou Industrial proposes to increase shareholding
------
Controlling shareholder and actual controller of Jiangsu Hongdou Industrial Co., Ltd. (600400.SH) proposes to increase shareholding of no less than 1 percent and no more than 3 percent of the total share capital the company in the next 12 months from Dec. 6. The reason for increasing shareholding is because it is recognize the value of the company and confident in the future development of the company.
In addition, actual controller of KingClean Electric Co., Ltd. (603355.SH) has increased in total 30.6 million shares of the company from Sept. 20 to Dec. 5.
TOP
○ Shareholder increase holding in Guanghe landscape Culture Communication
------
Zhou Xiaoyan, Zhao Mingxian, Lin Ningyao, Wu Taijiao, Shenzhen Paodegap Co., Ltd., who are shareholders of Guanghe landscape Culture Communication Co., Ltd, ShanXi (600234.SH) and parties acting in concert, have in total held 20,244,600 shares of the company from Sept. 21 to Dec. 5, and the percentage of shareholding increased from 5 percent to 10 percent. In the next 12 month, these parties propose to increase holding another 1 billion shares of the company.
○ China Guodian Corporation, actual controller of Ningxia Younglight Chemicals Co., Ltd. (000635.SZ), received opinions from the State Assets Supervision and Administration Commission (SASAC) under the State Council that the SASAC approved the transfer of 51.25 percent of the company by the shareholder Younglight Group. The transfer price is no more than 19.52 yuan per share.
○ KPC Pharmaceuticals, Inc. (600422.SH) invests 3 million yuan to acquire 9.91 percent equities and relevant interests of a US company RiMO. The two parties propose to work together to develop the Chinese market for RiMO's products. RiMO's new "radiotherapy - radiation dynamic" technology is a high-efficient, revolutionary cancer treatment technology. It is the first of its kind in the world
[Financial Reports Express]
○ Dragon Pipe Manufacturing proposes high share conversion and dividend
------
Actual controller of Zhejiang Dragon Pipe Manufacturing Co., Ltd. (002619.SZ) proposes 15-for-10 conversion of capital surplus into shares in the annual report.
[Trading Trends]
○ Northbound Trading Link under Shenzhen-Hong Kong Stock Connect saw huge capital flow on the first day, favoring "white-horse" stocks
------
On the first day of the opening of Shenzhen-Hong Kong Stock Connect, the Shenzhen Stock Exchange's disclosure shows that the Northbound Trading Link has bought in total 2,669 million yuan worth of shares, and the Southbound Trading Link has seen net capital inflow of 881 million yuan. The Northbound Trading Link has higher enthusiasm than Southbound Trading Link. Various institutions interviewed say that the trading of the Northbound Trading Link is more active than expectation. "White-horse" stocks on the Shenzhen Stock Exchange are attractive to foreign capitals.
As to individual stocks, Gree Electric Appliances, Inc. of Zhuhai (000651.SZ), Midea Group Co., Ltd. (000333.SZ) and Hangzhou Hikvision Digital Technology Co., Ltd. (002415.SZ) ranked the top in terms of trading turnover through the Northbound Trading Link. The trading turnover of Gree Electric Appliances through the Northbound Trading Link amounted to 372 million yuan, ranking the first in the top five buy-in seats of the trading volume ranking list of the stock. In addition, Weichai Power Co., Ltd. (000338.SZ), BOE Technology Group Co., Ltd. (000725.SZ), Ping An Bank Co., Ltd. (000001.SZ) and Wuliangye Yibin Co., Ltd. (000858.SZ) also saw over 60 million yuan capital inflow.
[Trading Alarms]
○ Wujin Stainless Steel Pipe Group and Flag Chemical Industry IPO offers for subscription on Dec.6
------
Jiangsu Wujin Stainless Steel Pipe Group Co., Ltd. (732878.SZ) will offer for subscription at 14.87 yuan per share. The upper limit for each applicant is 20,000 shares. The company is primarily engaged in stainless pipes. Jiangsu Flag Chemical Industry Co., Ltd. (300575.SZ) will offer for subscription at 22.29 yuan per share. The upper limit for subscription is 18,000 shares. The company is primarily engaged in chemical products such as pesticide.
TOP
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