[Today's Guide]
○Agricultural supply-side structural reform to prioritize in 2017, institution rosy about seed stocks
○Further price hike of high-end liquor expected in 2017, phosphate fertilizer enterprises hope to keep price strong through production restriction
○ Berry Genomics realizes backdoor listing via Tianxing Instrument And Meter, V-GRASS Fashion to buy a Korean clothing brand
○ Lujiazui Finance ＆ Trade Zone Development to buy real estate projects in Suzhou and Shanghai at 11.9 bln, Kaidi Ecological and Environmental Technology proposes high share conversion and dividend
[SSN Focus]
○Agricultural supply-side structural reform to prioritize in 2017, institution rosy about seed stocks
------
The Central Economic Work Conference, held on Dec. 14-16 in Beijing, made "deepening the agricultural supply-side structural reform" one of the priorities. It is proposed to highlight the supply of green and quality agricultural products; pay special attention to the standardized production, brand building, and the supervision over quality and safety of agricultural products; reform the pricing mechanism and storage system of important agricultural products like grain in an active and steady way; refine and implement the division of land ownership, contractual rights of land and the right of management, and foster new-type agricultural operators and service providers.
Comment: The surveyed experts hold that the supply-demand structure of agricultural products might be improved through structural adjustment in aspects like planting and breeding, paving way for price hike. The Central Rural Work Conference, to be opened soon, is expected to further define detailed reform paths of the agricultural supply-side structural reform. Research report by Shenwan Hongyuan Securities claims that the seed industry sees severe supply glut now. Supply-side reform will lead to that grain price sees limited drop, thus valuation problem of the sector can be solved. The institution is rosy about companies like Yuan Longping High-tech Agriculture Co., Ltd. (000998.SZ), Shandong Denghai Seeds Co., Ltd. (002041.SZ), Zhongnongfa Seed Industry Group Co., Ltd. (600313.SH) and Beijing Dabeinong Technology Group Co., Ltd. (002385.SZ).
◆Mixed-ownership reform to become important breakthrough of SOEs reform
------
The Central Economic Work Conference proposes to deepen state-owned enterprises (SOEs) and state-owned assets reform, and move faster in building an effective corporate governance structure and a high-efficient and flexible market-oriented operation mechanism. The mixed-ownership reform is an important breakthrough of the SOEs reform. Under the requirements of improving governance, intensifying incentives, highlighting primary business and enhancing efficiency, the mixed-ownership reform will achieve substantial progress in electricity, oil, gas, railway, civil aviation, telecom and military industries.
Comment: The surveyed experts believe that mixed-ownership reform will become an important part and a breakthrough of the SOEs reform in 2017. Mixed-ownership reform in monopoly areas was a hard nut to crack earlier, but it plays as a pulling force in the whole mixed-ownership reform and even the SOEs reform. A tough fight will be carried out in these two years. The National Development and Reform Commission (NDRC) once indicated in November that seven enterprises/projects from seven areas, with electricity included, were selected to first pilot the mixed-ownership reform. Up to now, these enterprises have all rolled out their schemes. 2017 will see the implementation of the mixed-ownership reform. It is expected that monopoly areas will first introduce social capital into their sales side and newly-added sectors.
[SSN Selection]
○The Management Methods on the Appropriateness of Securities and Futures Investors was released recently. It will be officially put into practice in July 2017 after six-month transitional period.
○The China Securities Regulatory Commission (CSRC) nodded the IPO applications of 11 enterprises on Dec. 16. The total fundraising is expected to be no more than 5 billion yuan.
○Option trading of white sugar and soya bean meal has been nodded by the China Securities Regulatory Commission (CSRC). 3-month preparation is required.
○China's central bank pumped 394 billion yuan into the market through medium-term lending facility (MLF) on Dec. 16. Analysts believed that both the liquidity gap before year end and the capital injection structure of the central bank will continue.
○A meeting targeting at readjusting the orders in the rare earth market was held on Dec. 16. Eight departments will join hand in cracking down the violations of laws and rules across the country.
○China Vanke Co., Ltd. (000002.SZ) announced the termination of acquiring the assets of Shenzhen Metro Group, and indicated that it will continue to communicate with various institutions.
TOP
[Industry Information]
○Strong demand on high-end liquor, further price hike expected in 2017
------
On the 20th Wuliangye 1218 Dealer Convention to Develop Win-Win Partnerships held on Dec. 18, Liu Zhongguo, general manager of Wuliangye Group, claimed that the company will continue to adopt comprehensive supporting measures in 2017. The price of 52-proof Crystal Wuliangye, core product of the company, will further hike to above 739 yuan per bottle. The pricing of Wuliangye 1618 and low-proof Wuliangye products will be adjusted too after the 1218 Dealer Convention.
Comment: Kweichow Moutai Group recently also indicated on its official website that two products see capacity crunch now. Institutions point out that the market turns to other varieties when the strong demand on standard Moutai products cannot be met, leading to tight supply. Research reports by securities companies show that the strategy adopted by Wuliangye Yibin Co., Ltd. (000858.SZ) in raising factory price to drive up wholesale price and terminal price was proved to be effective. The market is optimistic about the price performance of 52-proof Crystal Wuliangye in 2017. Benefited from the demand and inventory cycles, Kweichow Moutai Co., Ltd. (600519.SH) now sees its sales and price both rise.
○Enterprises hope to keep price strong through production restriction, phosphate fertilizer experiences large price hike
------
Phosphate fertilizer experienced large price hike in recent week. The price of monoammonium phosphate was raised by 200 yuan per ton to 300 yuan per ton, or 10 percent. A price hike of 200 yuan per ton is also widely seen among diammonium phosphate products. And the mainstream quoted price ranges from 2,200 yuan per ton to 2,500 yuan per ton.
Comment: It is learnt that this round of price hike is mainly driven by the production restriction of the phosphate fertilizer industry as well as the rising price of raw materials like Sulphur and synthesis ammonia. At present, the industry sees low rate of operation and market inventory, and relevant enterprises strongly hope to keep price strong through production restriction. Research report of China International Capital Corporation Limited (CICC) expects that the export tariff of phosphate fertilizer might be removed in 2017, helping to boost exporting demand. Enterprises like Hubei Xingfa Chemicals Group Co., Ltd. (600141.SH) and Anhui Liuguo Chemical Co., Ltd. (600470.SH) benefit from the price hike of phosphate fertilizer products and see sound outlook of performance.
[SSN Selection]
○The Management Methods on the Appropriateness of Securities and Futures Investors was released recently. It will be officially put into practice in July 2017 after six-month transitional period.
○The China Securities Regulatory Commission (CSRC) nodded the IPO applications of 11 enterprises on Dec. 16. The total fundraising is expected to be no more than 5 billion yuan.
○Option trading of white sugar and soya bean meal has been nodded by the China Securities Regulatory Commission (CSRC). 3-month preparation is required.
○China's central bank pumped 394 billion yuan into the market through medium-term lending facility (MLF) on Dec. 16. Analysts believed that both the liquidity gap before year end and the capital injection structure of the central bank will continue.
○A meeting targeting at readjusting the orders in the rare earth market was held on Dec. 16. Eight departments will join hand in cracking down the violations of laws and rules across the country.
○China Vanke Co., Ltd. (000002.SZ) announced the termination of acquiring the assets of Shenzhen Metro Group, and indicated that it will continue to communicate with various institutions.
TOP
[Announcement Interpretation]
○Berry Genomics realizes backdoor listing via Tianxing Instrument And Meter at RMB4.3 bln
------
Chengdu Tianxing Instrument And Meter Co., Ltd. (000710.SZ) plans to acquire 100 percent equity of Berry Genomics Co., Ltd. at 4.3 billion yuan by issuing shares at a price of 21.14 yuan per share through private placement. At the same time, it plans to sell all of its assets and liability excluding monetary capital, notes receivable, short-term loans, notes payable and long-term loans to Chengdu Tongyu Automobile Parts Co., Ltd., a subsidiary of Tianxing Group Co., Ltd., which is totally valuated at 297 million yuan.
Berry Genomics is engaged in gene sequencing service and sales of equipment reagents. The company will realize backdoor listing via this transaction and its actual controller Gao Yang will become the new actual controller of the listed company. According to commitment, net profit after extraordinary gains and losses of Berry Genomics will not be less than 228 million yuan, 309 million yuan and 405 million yuan during 2017 and 2019 respectively.
○V-GRASS Fashion to buy a Korean clothing brand
------
V-GRASS Fashion Co., Ltd. (603518.SH) plans to buy a Korean clothing brand called Teenie Weenie and its relevant assets and businesses by paying in cash. It will firstly acquire 90 percent equity of the company at 4.5 billion yuan and acquire the remaining 10 percent next. The total cost of the acquisition is predicted to be around 5 billion yuan. V-GRASS Fashion will raise more than 77 percent of the cost with the help of external financing.
At present, Teenie Weenie has developed into a medium and high-end fashionable clothing brand and its operation revenue was 2.112 billion yuan in 2015. This acquisition will improve product variety of the brand and expand its targeted customer group.
TOP
○Lujiazui Finance ＆ Trade Zone Development to buy real estate projects in Suzhou and Shanghai at 11.9 bln
------
Shanghai Lujiazui Finance ＆ Trade Zone Development Co., Ltd. (600663.SH) won 95 percent equity of Suzhou Greenbank Real Estate Development Co., Ltd. at Shanghai United Assets and Equity Exchange via two of its wholly-owned subsidiaries Shanghai Jiawan Assets Management Co., Ltd. and Shanghai Jiaer Industrial Investment Co., Ltd. Jiawan Assets Management invests 2.025 billion yuan and iaer Industrial Investment contributes 6.5 billion yuan via trust plan, making the transaction amount at 8.525 billion yuan. 95 percent equity of Greenbank Real Estate Development is equal to 6.84 billion yuan and compensatory debts are 1.685 billion yuan. Greenbank Real Estate Development owns 17 pieces of land earlier at low cost. Its overall evaluation is 7.2 billion yuan with a value-added ratio of 15,688 percent due to added value of land.
Lujiazui Finance ＆ Trade Zone Development acquires 100 percent equity and all creditor's rights of Shanghai Shenwan Properties Co., Ltd. at 3.413 billion yuan through its wholly-owned subsidiary Shanghai Pure Landscape Industrial Co., Ltd. Major asset of Shenwan Properties is land along Huangpu River of Pudong District, Shanghai, which covers 23,800 square meters. There are two rail transit system lines surrounding it.
○Reorganization of Kingray New Materials Science ＆ Technology Co., Ltd. (600390.SZ) is approved by China Securities Regulatory Commission (CSRC). TCL Corporation (000100.SZ) terminates mulling over major reorganization and resumes trading.
○Hongqi Chain and other firms see shareholding increase
------
According to announcement of Chengdu Hongqi Chain Co., Ltd. (002697.SZ), China Smartfortune Co., Ltd. bought 67,999,900 shares of the company via block trade on Dec. 16, accounting for 4.99 percent of total sharer capitals of the company. Controlling shareholder of Ningbo Joyson Electronic Corp. (600699.SH) increased shareholding in the company by 2.48 million shares on Dec. 15 and 16. Three shareholders of Shanghai Taisheng Wind Power Equipment Co., Ltd. (300129.SZ) increased shareholding in the company by 10.99 million shares with lock-up period of three years on Dec. 16. Controlling shareholder of Dalian Insulator Group Co., Ltd. (002606.SZ) bought 2.04 million shares of the company on Dec. 16. Controlling shareholder of Zhejiang Asia-pacific Mechanical ＆ Electronic Co., Ltd. (002284.SZ) bought 180,000 shares of the company on Dec. 16.
[Financial Reports Express]
○Kaidi Ecological and Environmental Technology proposes high share conversion and dividend
------
Annual profit of Kaidi Ecological and Environmental Technology Co., Ltd. (000939.SZ) is expected to grow by 0.37-23.78 percent. Its substantial shareholder proposes a 20-for-10 conversion of capital surplus.
[Trading Alarms]
○Envicool Technology and other two companies launch IPOs on Dec. 19
------
Shenzhen Envicool Technology Co., Ltd. (002837.SZ) is going to launch IPO at a price of 18 yuan per share with an upper limit of 20,000 shares for each subscription account. The company is engaged in temperature control equipment of machine room or other places. KDT Woodworking Machinery Corporation (002833.SZ) is going to launch IPO at a price of 10.11 yuan per share with an upper limit of 13,000 shares for each subscription account. The company is specialized in panel furniture.
Riyue Heavy Industry Corporation Ltd. is going to launch IPO at a price of 23.9 yuan per share with an upper limit of 12,000 shares for each subscription account. The company is engaged metal casting of wind power and other fields.
[Weekly Review]
○Market preference inclined to real economy instead of virtual economy
------
Theme stocks showed signs of being active last week, but the market continues to prefer real economy instead of virtual economy in the long run. In terms of industries, those active individual stocks in last week were in seed industry, cultivation, chemical engineering and other traditional industries, while technological stocks were still flat.
With shift in market preference, investors should notice change in fundamental. The change refers to recovery in real economy but few highlights in virtual economy and emerging industries. No matter good sales of heavy trucks and recovery in PPI and CPI or rapid growth in added value of large-scale industry further proves recovery in real economy. In addition, expectation on supply-side reform also further strengthens intention of allocating capitals in traditional industries. As for companies listed on SME Board and ChiNext Board, Leshi, which was a leading company before, is stuck in various crisis, and film and TV industry as a big-cap sector of Chinext Board has to face slowing growth in box office.
Based on the above judgment, SSN recently focused on the topic on real economy. On Dec. 11, SSN Focus pointed out the supply-side reform in agriculture gained attention. Institutions are rosy about transformation of companies in seed industry, and individual stocks such as Yuan Longping High-tech Agriculture Co., Ltd. (000998.SZ) and Shandong Denghai Seeds Co., Ltd. (002041.SZ) rose by daily limit of ten percent continuously last week. On the same day, Industry Information pointed out that petroleum industry chain is expected to see improvement in profits, and then petrochemical industry showed brilliant performance. After SSN reported manufacturing of environmental protection equipment got policy support on Dec. 15, Xi'an Qiyuan Mechanical And Electrical Equipment Co., Ltd. (300140.SZ) soared by the daily limit of ten percent the next day.
TOP
○Agricultural supply-side structural reform to prioritize in 2017, institution rosy about seed stocks
○Further price hike of high-end liquor expected in 2017, phosphate fertilizer enterprises hope to keep price strong through production restriction
○ Berry Genomics realizes backdoor listing via Tianxing Instrument And Meter, V-GRASS Fashion to buy a Korean clothing brand
○ Lujiazui Finance ＆ Trade Zone Development to buy real estate projects in Suzhou and Shanghai at 11.9 bln, Kaidi Ecological and Environmental Technology proposes high share conversion and dividend
[SSN Focus]
○Agricultural supply-side structural reform to prioritize in 2017, institution rosy about seed stocks
------
The Central Economic Work Conference, held on Dec. 14-16 in Beijing, made "deepening the agricultural supply-side structural reform" one of the priorities. It is proposed to highlight the supply of green and quality agricultural products; pay special attention to the standardized production, brand building, and the supervision over quality and safety of agricultural products; reform the pricing mechanism and storage system of important agricultural products like grain in an active and steady way; refine and implement the division of land ownership, contractual rights of land and the right of management, and foster new-type agricultural operators and service providers.
Comment: The surveyed experts hold that the supply-demand structure of agricultural products might be improved through structural adjustment in aspects like planting and breeding, paving way for price hike. The Central Rural Work Conference, to be opened soon, is expected to further define detailed reform paths of the agricultural supply-side structural reform. Research report by Shenwan Hongyuan Securities claims that the seed industry sees severe supply glut now. Supply-side reform will lead to that grain price sees limited drop, thus valuation problem of the sector can be solved. The institution is rosy about companies like Yuan Longping High-tech Agriculture Co., Ltd. (000998.SZ), Shandong Denghai Seeds Co., Ltd. (002041.SZ), Zhongnongfa Seed Industry Group Co., Ltd. (600313.SH) and Beijing Dabeinong Technology Group Co., Ltd. (002385.SZ).
◆Mixed-ownership reform to become important breakthrough of SOEs reform
------
The Central Economic Work Conference proposes to deepen state-owned enterprises (SOEs) and state-owned assets reform, and move faster in building an effective corporate governance structure and a high-efficient and flexible market-oriented operation mechanism. The mixed-ownership reform is an important breakthrough of the SOEs reform. Under the requirements of improving governance, intensifying incentives, highlighting primary business and enhancing efficiency, the mixed-ownership reform will achieve substantial progress in electricity, oil, gas, railway, civil aviation, telecom and military industries.
Comment: The surveyed experts believe that mixed-ownership reform will become an important part and a breakthrough of the SOEs reform in 2017. Mixed-ownership reform in monopoly areas was a hard nut to crack earlier, but it plays as a pulling force in the whole mixed-ownership reform and even the SOEs reform. A tough fight will be carried out in these two years. The National Development and Reform Commission (NDRC) once indicated in November that seven enterprises/projects from seven areas, with electricity included, were selected to first pilot the mixed-ownership reform. Up to now, these enterprises have all rolled out their schemes. 2017 will see the implementation of the mixed-ownership reform. It is expected that monopoly areas will first introduce social capital into their sales side and newly-added sectors.
[SSN Selection]
○The Management Methods on the Appropriateness of Securities and Futures Investors was released recently. It will be officially put into practice in July 2017 after six-month transitional period.
○The China Securities Regulatory Commission (CSRC) nodded the IPO applications of 11 enterprises on Dec. 16. The total fundraising is expected to be no more than 5 billion yuan.
○Option trading of white sugar and soya bean meal has been nodded by the China Securities Regulatory Commission (CSRC). 3-month preparation is required.
○China's central bank pumped 394 billion yuan into the market through medium-term lending facility (MLF) on Dec. 16. Analysts believed that both the liquidity gap before year end and the capital injection structure of the central bank will continue.
○A meeting targeting at readjusting the orders in the rare earth market was held on Dec. 16. Eight departments will join hand in cracking down the violations of laws and rules across the country.
○China Vanke Co., Ltd. (000002.SZ) announced the termination of acquiring the assets of Shenzhen Metro Group, and indicated that it will continue to communicate with various institutions.
TOP
[Industry Information]
○Strong demand on high-end liquor, further price hike expected in 2017
------
On the 20th Wuliangye 1218 Dealer Convention to Develop Win-Win Partnerships held on Dec. 18, Liu Zhongguo, general manager of Wuliangye Group, claimed that the company will continue to adopt comprehensive supporting measures in 2017. The price of 52-proof Crystal Wuliangye, core product of the company, will further hike to above 739 yuan per bottle. The pricing of Wuliangye 1618 and low-proof Wuliangye products will be adjusted too after the 1218 Dealer Convention.
Comment: Kweichow Moutai Group recently also indicated on its official website that two products see capacity crunch now. Institutions point out that the market turns to other varieties when the strong demand on standard Moutai products cannot be met, leading to tight supply. Research reports by securities companies show that the strategy adopted by Wuliangye Yibin Co., Ltd. (000858.SZ) in raising factory price to drive up wholesale price and terminal price was proved to be effective. The market is optimistic about the price performance of 52-proof Crystal Wuliangye in 2017. Benefited from the demand and inventory cycles, Kweichow Moutai Co., Ltd. (600519.SH) now sees its sales and price both rise.
○Enterprises hope to keep price strong through production restriction, phosphate fertilizer experiences large price hike
------
Phosphate fertilizer experienced large price hike in recent week. The price of monoammonium phosphate was raised by 200 yuan per ton to 300 yuan per ton, or 10 percent. A price hike of 200 yuan per ton is also widely seen among diammonium phosphate products. And the mainstream quoted price ranges from 2,200 yuan per ton to 2,500 yuan per ton.
Comment: It is learnt that this round of price hike is mainly driven by the production restriction of the phosphate fertilizer industry as well as the rising price of raw materials like Sulphur and synthesis ammonia. At present, the industry sees low rate of operation and market inventory, and relevant enterprises strongly hope to keep price strong through production restriction. Research report of China International Capital Corporation Limited (CICC) expects that the export tariff of phosphate fertilizer might be removed in 2017, helping to boost exporting demand. Enterprises like Hubei Xingfa Chemicals Group Co., Ltd. (600141.SH) and Anhui Liuguo Chemical Co., Ltd. (600470.SH) benefit from the price hike of phosphate fertilizer products and see sound outlook of performance.
[SSN Selection]
○The Management Methods on the Appropriateness of Securities and Futures Investors was released recently. It will be officially put into practice in July 2017 after six-month transitional period.
○The China Securities Regulatory Commission (CSRC) nodded the IPO applications of 11 enterprises on Dec. 16. The total fundraising is expected to be no more than 5 billion yuan.
○Option trading of white sugar and soya bean meal has been nodded by the China Securities Regulatory Commission (CSRC). 3-month preparation is required.
○China's central bank pumped 394 billion yuan into the market through medium-term lending facility (MLF) on Dec. 16. Analysts believed that both the liquidity gap before year end and the capital injection structure of the central bank will continue.
○A meeting targeting at readjusting the orders in the rare earth market was held on Dec. 16. Eight departments will join hand in cracking down the violations of laws and rules across the country.
○China Vanke Co., Ltd. (000002.SZ) announced the termination of acquiring the assets of Shenzhen Metro Group, and indicated that it will continue to communicate with various institutions.
TOP
[Announcement Interpretation]
○Berry Genomics realizes backdoor listing via Tianxing Instrument And Meter at RMB4.3 bln
------
Chengdu Tianxing Instrument And Meter Co., Ltd. (000710.SZ) plans to acquire 100 percent equity of Berry Genomics Co., Ltd. at 4.3 billion yuan by issuing shares at a price of 21.14 yuan per share through private placement. At the same time, it plans to sell all of its assets and liability excluding monetary capital, notes receivable, short-term loans, notes payable and long-term loans to Chengdu Tongyu Automobile Parts Co., Ltd., a subsidiary of Tianxing Group Co., Ltd., which is totally valuated at 297 million yuan.
Berry Genomics is engaged in gene sequencing service and sales of equipment reagents. The company will realize backdoor listing via this transaction and its actual controller Gao Yang will become the new actual controller of the listed company. According to commitment, net profit after extraordinary gains and losses of Berry Genomics will not be less than 228 million yuan, 309 million yuan and 405 million yuan during 2017 and 2019 respectively.
○V-GRASS Fashion to buy a Korean clothing brand
------
V-GRASS Fashion Co., Ltd. (603518.SH) plans to buy a Korean clothing brand called Teenie Weenie and its relevant assets and businesses by paying in cash. It will firstly acquire 90 percent equity of the company at 4.5 billion yuan and acquire the remaining 10 percent next. The total cost of the acquisition is predicted to be around 5 billion yuan. V-GRASS Fashion will raise more than 77 percent of the cost with the help of external financing.
At present, Teenie Weenie has developed into a medium and high-end fashionable clothing brand and its operation revenue was 2.112 billion yuan in 2015. This acquisition will improve product variety of the brand and expand its targeted customer group.
TOP
○Lujiazui Finance ＆ Trade Zone Development to buy real estate projects in Suzhou and Shanghai at 11.9 bln
------
Shanghai Lujiazui Finance ＆ Trade Zone Development Co., Ltd. (600663.SH) won 95 percent equity of Suzhou Greenbank Real Estate Development Co., Ltd. at Shanghai United Assets and Equity Exchange via two of its wholly-owned subsidiaries Shanghai Jiawan Assets Management Co., Ltd. and Shanghai Jiaer Industrial Investment Co., Ltd. Jiawan Assets Management invests 2.025 billion yuan and iaer Industrial Investment contributes 6.5 billion yuan via trust plan, making the transaction amount at 8.525 billion yuan. 95 percent equity of Greenbank Real Estate Development is equal to 6.84 billion yuan and compensatory debts are 1.685 billion yuan. Greenbank Real Estate Development owns 17 pieces of land earlier at low cost. Its overall evaluation is 7.2 billion yuan with a value-added ratio of 15,688 percent due to added value of land.
Lujiazui Finance ＆ Trade Zone Development acquires 100 percent equity and all creditor's rights of Shanghai Shenwan Properties Co., Ltd. at 3.413 billion yuan through its wholly-owned subsidiary Shanghai Pure Landscape Industrial Co., Ltd. Major asset of Shenwan Properties is land along Huangpu River of Pudong District, Shanghai, which covers 23,800 square meters. There are two rail transit system lines surrounding it.
○Reorganization of Kingray New Materials Science ＆ Technology Co., Ltd. (600390.SZ) is approved by China Securities Regulatory Commission (CSRC). TCL Corporation (000100.SZ) terminates mulling over major reorganization and resumes trading.
○Hongqi Chain and other firms see shareholding increase
------
According to announcement of Chengdu Hongqi Chain Co., Ltd. (002697.SZ), China Smartfortune Co., Ltd. bought 67,999,900 shares of the company via block trade on Dec. 16, accounting for 4.99 percent of total sharer capitals of the company. Controlling shareholder of Ningbo Joyson Electronic Corp. (600699.SH) increased shareholding in the company by 2.48 million shares on Dec. 15 and 16. Three shareholders of Shanghai Taisheng Wind Power Equipment Co., Ltd. (300129.SZ) increased shareholding in the company by 10.99 million shares with lock-up period of three years on Dec. 16. Controlling shareholder of Dalian Insulator Group Co., Ltd. (002606.SZ) bought 2.04 million shares of the company on Dec. 16. Controlling shareholder of Zhejiang Asia-pacific Mechanical ＆ Electronic Co., Ltd. (002284.SZ) bought 180,000 shares of the company on Dec. 16.
[Financial Reports Express]
○Kaidi Ecological and Environmental Technology proposes high share conversion and dividend
------
Annual profit of Kaidi Ecological and Environmental Technology Co., Ltd. (000939.SZ) is expected to grow by 0.37-23.78 percent. Its substantial shareholder proposes a 20-for-10 conversion of capital surplus.
[Trading Alarms]
○Envicool Technology and other two companies launch IPOs on Dec. 19
------
Shenzhen Envicool Technology Co., Ltd. (002837.SZ) is going to launch IPO at a price of 18 yuan per share with an upper limit of 20,000 shares for each subscription account. The company is engaged in temperature control equipment of machine room or other places. KDT Woodworking Machinery Corporation (002833.SZ) is going to launch IPO at a price of 10.11 yuan per share with an upper limit of 13,000 shares for each subscription account. The company is specialized in panel furniture.
Riyue Heavy Industry Corporation Ltd. is going to launch IPO at a price of 23.9 yuan per share with an upper limit of 12,000 shares for each subscription account. The company is engaged metal casting of wind power and other fields.
[Weekly Review]
○Market preference inclined to real economy instead of virtual economy
------
Theme stocks showed signs of being active last week, but the market continues to prefer real economy instead of virtual economy in the long run. In terms of industries, those active individual stocks in last week were in seed industry, cultivation, chemical engineering and other traditional industries, while technological stocks were still flat.
With shift in market preference, investors should notice change in fundamental. The change refers to recovery in real economy but few highlights in virtual economy and emerging industries. No matter good sales of heavy trucks and recovery in PPI and CPI or rapid growth in added value of large-scale industry further proves recovery in real economy. In addition, expectation on supply-side reform also further strengthens intention of allocating capitals in traditional industries. As for companies listed on SME Board and ChiNext Board, Leshi, which was a leading company before, is stuck in various crisis, and film and TV industry as a big-cap sector of Chinext Board has to face slowing growth in box office.
Based on the above judgment, SSN recently focused on the topic on real economy. On Dec. 11, SSN Focus pointed out the supply-side reform in agriculture gained attention. Institutions are rosy about transformation of companies in seed industry, and individual stocks such as Yuan Longping High-tech Agriculture Co., Ltd. (000998.SZ) and Shandong Denghai Seeds Co., Ltd. (002041.SZ) rose by daily limit of ten percent continuously last week. On the same day, Industry Information pointed out that petroleum industry chain is expected to see improvement in profits, and then petrochemical industry showed brilliant performance. After SSN reported manufacturing of environmental protection equipment got policy support on Dec. 15, Xi'an Qiyuan Mechanical And Electrical Equipment Co., Ltd. (300140.SZ) soared by the daily limit of ten percent the next day.
TOP
Latest comments