[Today's Guide]
○ 13th Five-year Plan on revitalization of northeast released, agriculture to see highlights
○ Guidance on transformation and development of packaging industry released to support making enterprises bigger and stronger
○ Jingwei Electric Wire to acquire Multek Display, Uroica Mining Safety Engineering completes subscription of additional offerings
○ Orbita Control Engineering to raise funds develop satellite, Jiawei Photovoltaic Lighting proposes high share conversion
[SSN Focus]
○ 13th Five-year Plan on revitalization of northeast released, agriculture to see highlights
------
The National Development and Reform Commission (NDRC) released the 13th Five-year Plan on the Revitalization of the Northeast on Dec. 19. In advancing key reforms, the plan requires accelerating the reform and development of the agricultural reclamation system. In terms of enhancing the comprehensive grain production capacity, it will implement good seeding industry and independent innovation in the industry to speed up in advancing scaled, integrated and standard livestock and poultry breeding. As for deepening the reform of the systems in rural areas, it will guide the transfer of the operation right of contracted farms to professional cooperatives and household farms.
Comment: Unlike the revitalization of old industrial bases, the revitalization of the northeast highlights the revitalization of the whole region. The northeast has abundant agricultural resources and agricultural products with scaled advantage, which will lay solid foundation for a new round of revitalization. Among local listed companies, institutes are rosy about the injection of land assets and the diversified shareholding reform of Heilongjiang Agriculture Company Limited (600598.SH). Wanxiang Doneed Co., Ltd. (600371.SH) introduced new products and the performance of the third quarter surged 268 percent year on year. Liaoning Wellhope Agri-Tech Joint Stock Co., Ltd. (603609.SH) is expected from the increase in the sales of fodder thanks to the raising of southern pigs in the north.
[SSN Selection]
○ The State Council released the Plan on the Development of the National Strategic and Emerging Industries during the 13th Five-year Period, proposing to form five new pillars, including the new generation of information technology, high-end manufacturing, biology, green and low-carbon and digital innovation, with a size of 10 trillion yuan.
○ The second draft of the law of the tax on environmental protection was submitted to the Standing Committee of the National People's Congress on Dec. 19, which encourages enterprises to reduce emission.
○ The statistics of the National Bureau of Statistics show that the areas of commercial and residential houses to be sold decreased 8.2 percent year on year in November. The de-stocking has made preliminary results.
○ Oceanwide companies increased the holding of H shares of China Minsheng Banking Corp., Ltd. (01988.HK; 600016.SH) by 135 million shares from Dec. 15 to 16. Its shareholding in China Minsheng Banking increased to 5 percent.
○ The Industrial and Commercial Bank of China Limited (01398.HK; 601398.SH), BBMG Corporation (02009.HK; 601992.SH) and Jidong Development Group signed a cooperation agreement on Dec. 18 and will conduct a debt-equity swap business with a total of 5 billion yuan.
TOP
[Industry Information]
○ Guidance on transformation and development of packaging industry released to support making enterprises bigger and stronger
------
The Ministry of Industry and Information Technology (MIIT) and the Ministry of Commerce jointly released the guidance on speeding up the transformation and development of the packaging industry in China on Dec. 19, proposing that the annual revenue from main businesses in the packaging industry will reach 2.5 trillion yuan, more than 15 enterprises or groups with an annual output of over 5 billion yuan will be established and the number of listed companies and high- and new-tech enterprises will increase significantly by 2020. More than 80 percent of large and medium packaging enterprises will be under integrated development. The proportion of small and medium enterprises conducting information technology research and development, management and production control will be improved to over 55 percent from the current 30 percent.
Comment: The Chinese packaging industry has a weak capability of independent innovation. Advanced equipment and key technologies highly depend on imports. The guidance is to support making quality enterprises bigger and stronger. Institutes believe that the performance of packaging enterprises will improve in the second half and will benefit from the stable growth in consumption. MYS Group Co., Ltd. (002303.SZ), a leader in the integrated packaging services, completed fundraising through private placement in November and will invest in intelligent factories in the packaging and printing industry 4.0. The endogenous growth of ORG Packaging Co., Ltd. (002701.SZ) will recover with its core client RedBull.
○ Output cut drives oil price recovery, oil services equipment industry frequently
------
The international oil price continued to recover driven by the agreement between OPEC and non-OPEC producers. The oil and gas exploration and exploitation, the oil services equipment industry and other industries are catching more attention. SSN's statistics show that institutes have conducted frequent inspections on oil services equipment enterprises since December. Sinopec Oilfield Equipment Corporation (000852.SZ), principally engaged in drills and oil and gas pipes, have been inspected by four institutes this month. The company indicated that with the recovery of oil price, the market demand for its products will hike. Tong Oil Tools Co., Ltd. (300164.SZ) was also frequently inspected by institutes this month. The company is principally engaged in combined perforators and other oilfield technical service products.
Comment: Institutes estimate that driven by the improvement in the supply and demand, the oil price is expected to exceed 60 U.S. dollars per barrel in 2017. Oil and gas exploitation as an upper sector in the oil chemical industry will benefit from the surging oil price firstly. The improvement in the profitability of exploitation enterprises will increase the orders of equipment enterprises.
TOP
[Announcement Interpretation]
○ Jingwei Electric Wire plans to acquire Multek Display for RMB 1.241bln. to develop touch screen
------
Tianjin Jingwei Electric Wire Co., Ltd. (300120.SZ) proposes to acquire to acquire 100 percent stake of Multek Display Limited for a total of 1.241 billion yuan which will be paid by issuing shares at 12.8 yuan per share through private placement and in cash. Meanwhile, the company proposes to raise no more than 532 million yuan supporting fund by issuing shares at no less than 12.85 yuan per share. Multek Display's main products include touch screen, small and medium-size LED and LED module. According to its performance commitment, its net profit after deducting non-recurring profit and loss from 2016 to 2018 should be no less than 74,374,500 million, 113 million and 137 million yuan.
○Uroica Mining Safety Engineering Co., Ltd. (300099.SZ) has successfully completed subscription through private placement. The company will resume trading on Dec. 20.
TOP
○ Orbita Control Engineering to raise RMB 1,082 mln. to develop satellite
------
Zhuhai Orbita Control Engineering Co. ,Ltd. (300053.SZ) proposes to raise no more than 1,082 million yuan by issuing no more than 80 million shares via private placement. The proceeds will be used for the construction of Zhuhai I remote sense micro-nano satellite constellation and the supplementary of working capital. The pricing benchmark date of the private placement is the first date of the offering. After the completion, the company is a professional company that provides services in the manufacturing and operation of micro-nano satellite (including chip satellite), providing satellite data, satellite data value-added service.
○ Shandong Hi-speed Road ＆ Bridge and other sign large contacts
------
Shandong Hi-speed Road ＆ Bridge Co., Ltd. (000498.SZ) wins the bidding for two projects with a total amount of over 10 billion yuan. The company obtained an operating revenue of 7.42 billion yuan in 2015. Xingyuan Environment Technology Co., Ltd. (300266.SZ) wins the 1.25 billion bidding for the EPC in Shibi County, Guizhou Province. The company obtained an operating revenue of 884 million yuan in 2015. Daling Industrial Co., Ltd., the stake-taken subsidy of Shenzhen Tatfook Technology Co., Ltd. (300134.SZ), signed two large contacts. The company's net profit will grow over 3 times in 2017.
○ YLZ Information Tech and other see shareholding increase
------
Zhang Xi, the largest shareholder of YLZ Information Technology Co., Ltd. (300096.SZ), proposes to perform its commitment to increase shareholdings from 13.35 percent to 22 percent. The controlling shareholder of Fujian Qingshan Paper Industry Co., Ltd. (600103.SH) plans to increase shareholding in the company with no less than 60 million yuan at an average price of no more than 6.5 yuan per share. The controlling shareholder of Zhejiang Jiahua Energy Chemical Industry Co., Ltd. (600273.SH) continues to increase shareholding by 1.99 million shares on Dec. 15 and Dec. 19.
○ The major asset reorganization plan of Dazhou Xingye Holding Co., Ltd. (600603.SH) restarts to be reviewed.
[Financial Express]
○ Jiawei Photovoltaic Lighting proposes high share conversion
------
Shenzhen Jiawei Photovoltaic Lighting Co.,Ltd. (300317.SZ) forecast a growth of 141-171 percent in its annual report. Its actual controller proposes a 28-for-10 conversion of capital surplus into shares with 0.5 dividend in its annual report. Its actual controller said that its shareholding decrease plan has completed, and will not decrease shareholdings in the company in the coming 6 months.
[Trading Alarms]
○ L＆K Engineering and Aolian Automobile Electronics ＆ Electrical Accessory to conduct IPO on Dec. 20
------
L＆K Engineering (Suzhou) Co., Ltd. (732929) will offer shares at 4.94 yuan per share with an upper limit of 21,000 shares for each applicant. The company is mainly engaged in integrated system for clean room system. Nanjing Aolian Automobile Electronics ＆ Electrical Accessory Co., Ltd. (300585.SZ) will offer shares at 9.86 yuan per share with an upper limit of 20,000 shares for each applicant. The company is mainly engaged in electronic automotive parts.
TOP
○ 13th Five-year Plan on revitalization of northeast released, agriculture to see highlights
○ Guidance on transformation and development of packaging industry released to support making enterprises bigger and stronger
○ Jingwei Electric Wire to acquire Multek Display, Uroica Mining Safety Engineering completes subscription of additional offerings
○ Orbita Control Engineering to raise funds develop satellite, Jiawei Photovoltaic Lighting proposes high share conversion
[SSN Focus]
○ 13th Five-year Plan on revitalization of northeast released, agriculture to see highlights
------
The National Development and Reform Commission (NDRC) released the 13th Five-year Plan on the Revitalization of the Northeast on Dec. 19. In advancing key reforms, the plan requires accelerating the reform and development of the agricultural reclamation system. In terms of enhancing the comprehensive grain production capacity, it will implement good seeding industry and independent innovation in the industry to speed up in advancing scaled, integrated and standard livestock and poultry breeding. As for deepening the reform of the systems in rural areas, it will guide the transfer of the operation right of contracted farms to professional cooperatives and household farms.
Comment: Unlike the revitalization of old industrial bases, the revitalization of the northeast highlights the revitalization of the whole region. The northeast has abundant agricultural resources and agricultural products with scaled advantage, which will lay solid foundation for a new round of revitalization. Among local listed companies, institutes are rosy about the injection of land assets and the diversified shareholding reform of Heilongjiang Agriculture Company Limited (600598.SH). Wanxiang Doneed Co., Ltd. (600371.SH) introduced new products and the performance of the third quarter surged 268 percent year on year. Liaoning Wellhope Agri-Tech Joint Stock Co., Ltd. (603609.SH) is expected from the increase in the sales of fodder thanks to the raising of southern pigs in the north.
[SSN Selection]
○ The State Council released the Plan on the Development of the National Strategic and Emerging Industries during the 13th Five-year Period, proposing to form five new pillars, including the new generation of information technology, high-end manufacturing, biology, green and low-carbon and digital innovation, with a size of 10 trillion yuan.
○ The second draft of the law of the tax on environmental protection was submitted to the Standing Committee of the National People's Congress on Dec. 19, which encourages enterprises to reduce emission.
○ The statistics of the National Bureau of Statistics show that the areas of commercial and residential houses to be sold decreased 8.2 percent year on year in November. The de-stocking has made preliminary results.
○ Oceanwide companies increased the holding of H shares of China Minsheng Banking Corp., Ltd. (01988.HK; 600016.SH) by 135 million shares from Dec. 15 to 16. Its shareholding in China Minsheng Banking increased to 5 percent.
○ The Industrial and Commercial Bank of China Limited (01398.HK; 601398.SH), BBMG Corporation (02009.HK; 601992.SH) and Jidong Development Group signed a cooperation agreement on Dec. 18 and will conduct a debt-equity swap business with a total of 5 billion yuan.
TOP
[Industry Information]
○ Guidance on transformation and development of packaging industry released to support making enterprises bigger and stronger
------
The Ministry of Industry and Information Technology (MIIT) and the Ministry of Commerce jointly released the guidance on speeding up the transformation and development of the packaging industry in China on Dec. 19, proposing that the annual revenue from main businesses in the packaging industry will reach 2.5 trillion yuan, more than 15 enterprises or groups with an annual output of over 5 billion yuan will be established and the number of listed companies and high- and new-tech enterprises will increase significantly by 2020. More than 80 percent of large and medium packaging enterprises will be under integrated development. The proportion of small and medium enterprises conducting information technology research and development, management and production control will be improved to over 55 percent from the current 30 percent.
Comment: The Chinese packaging industry has a weak capability of independent innovation. Advanced equipment and key technologies highly depend on imports. The guidance is to support making quality enterprises bigger and stronger. Institutes believe that the performance of packaging enterprises will improve in the second half and will benefit from the stable growth in consumption. MYS Group Co., Ltd. (002303.SZ), a leader in the integrated packaging services, completed fundraising through private placement in November and will invest in intelligent factories in the packaging and printing industry 4.0. The endogenous growth of ORG Packaging Co., Ltd. (002701.SZ) will recover with its core client RedBull.
○ Output cut drives oil price recovery, oil services equipment industry frequently
------
The international oil price continued to recover driven by the agreement between OPEC and non-OPEC producers. The oil and gas exploration and exploitation, the oil services equipment industry and other industries are catching more attention. SSN's statistics show that institutes have conducted frequent inspections on oil services equipment enterprises since December. Sinopec Oilfield Equipment Corporation (000852.SZ), principally engaged in drills and oil and gas pipes, have been inspected by four institutes this month. The company indicated that with the recovery of oil price, the market demand for its products will hike. Tong Oil Tools Co., Ltd. (300164.SZ) was also frequently inspected by institutes this month. The company is principally engaged in combined perforators and other oilfield technical service products.
Comment: Institutes estimate that driven by the improvement in the supply and demand, the oil price is expected to exceed 60 U.S. dollars per barrel in 2017. Oil and gas exploitation as an upper sector in the oil chemical industry will benefit from the surging oil price firstly. The improvement in the profitability of exploitation enterprises will increase the orders of equipment enterprises.
TOP
[Announcement Interpretation]
○ Jingwei Electric Wire plans to acquire Multek Display for RMB 1.241bln. to develop touch screen
------
Tianjin Jingwei Electric Wire Co., Ltd. (300120.SZ) proposes to acquire to acquire 100 percent stake of Multek Display Limited for a total of 1.241 billion yuan which will be paid by issuing shares at 12.8 yuan per share through private placement and in cash. Meanwhile, the company proposes to raise no more than 532 million yuan supporting fund by issuing shares at no less than 12.85 yuan per share. Multek Display's main products include touch screen, small and medium-size LED and LED module. According to its performance commitment, its net profit after deducting non-recurring profit and loss from 2016 to 2018 should be no less than 74,374,500 million, 113 million and 137 million yuan.
○Uroica Mining Safety Engineering Co., Ltd. (300099.SZ) has successfully completed subscription through private placement. The company will resume trading on Dec. 20.
TOP
○ Orbita Control Engineering to raise RMB 1,082 mln. to develop satellite
------
Zhuhai Orbita Control Engineering Co. ,Ltd. (300053.SZ) proposes to raise no more than 1,082 million yuan by issuing no more than 80 million shares via private placement. The proceeds will be used for the construction of Zhuhai I remote sense micro-nano satellite constellation and the supplementary of working capital. The pricing benchmark date of the private placement is the first date of the offering. After the completion, the company is a professional company that provides services in the manufacturing and operation of micro-nano satellite (including chip satellite), providing satellite data, satellite data value-added service.
○ Shandong Hi-speed Road ＆ Bridge and other sign large contacts
------
Shandong Hi-speed Road ＆ Bridge Co., Ltd. (000498.SZ) wins the bidding for two projects with a total amount of over 10 billion yuan. The company obtained an operating revenue of 7.42 billion yuan in 2015. Xingyuan Environment Technology Co., Ltd. (300266.SZ) wins the 1.25 billion bidding for the EPC in Shibi County, Guizhou Province. The company obtained an operating revenue of 884 million yuan in 2015. Daling Industrial Co., Ltd., the stake-taken subsidy of Shenzhen Tatfook Technology Co., Ltd. (300134.SZ), signed two large contacts. The company's net profit will grow over 3 times in 2017.
○ YLZ Information Tech and other see shareholding increase
------
Zhang Xi, the largest shareholder of YLZ Information Technology Co., Ltd. (300096.SZ), proposes to perform its commitment to increase shareholdings from 13.35 percent to 22 percent. The controlling shareholder of Fujian Qingshan Paper Industry Co., Ltd. (600103.SH) plans to increase shareholding in the company with no less than 60 million yuan at an average price of no more than 6.5 yuan per share. The controlling shareholder of Zhejiang Jiahua Energy Chemical Industry Co., Ltd. (600273.SH) continues to increase shareholding by 1.99 million shares on Dec. 15 and Dec. 19.
○ The major asset reorganization plan of Dazhou Xingye Holding Co., Ltd. (600603.SH) restarts to be reviewed.
[Financial Express]
○ Jiawei Photovoltaic Lighting proposes high share conversion
------
Shenzhen Jiawei Photovoltaic Lighting Co.,Ltd. (300317.SZ) forecast a growth of 141-171 percent in its annual report. Its actual controller proposes a 28-for-10 conversion of capital surplus into shares with 0.5 dividend in its annual report. Its actual controller said that its shareholding decrease plan has completed, and will not decrease shareholdings in the company in the coming 6 months.
[Trading Alarms]
○ L＆K Engineering and Aolian Automobile Electronics ＆ Electrical Accessory to conduct IPO on Dec. 20
------
L＆K Engineering (Suzhou) Co., Ltd. (732929) will offer shares at 4.94 yuan per share with an upper limit of 21,000 shares for each applicant. The company is mainly engaged in integrated system for clean room system. Nanjing Aolian Automobile Electronics ＆ Electrical Accessory Co., Ltd. (300585.SZ) will offer shares at 9.86 yuan per share with an upper limit of 20,000 shares for each applicant. The company is mainly engaged in electronic automotive parts.
TOP
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