[Today's Guide]
○Central Rural Work Conference held, water saving in agriculture industry embraces policy support again
○SASAC requires advancing mixed-ownership reform, China National Building Material among the first to pilot mixed-ownership reform
○13th five-year development plan for e-commerce to release, e-commerce operation companies point development trend
○Changbao Steeltube to step in medical industry, Biggest shareholder of China Sports Industry Group to transfer shareholdings, requiring high-quality assets from offer accepter
[SSN Focus]
○Central Rural Work Conference held, water saving in agriculture industry embraces policy support again
------
The Central Rural Work Conference, held on Dec. 19-20, proposed to make supply-side reform in agriculture the main theme in next year's rural and agricultural work. It is required to adapt to market demand, optimize product structure, and further prioritize the improvement of the quality of agricultural products; moderately develop scale operation, and enhance operation structure; move faster in technology innovation, and strengthen agricultural development momentum; promote green production, and attach great importance to water saving in the agriculture industry.
Comment: Policies supporting water saving in the agriculture industry are rolled out in succession recently. Nine departments released the National Water Saving Action Plan together with water saving placed in the first place; the National Development and Reform Commission (NDRC) and the Ministry of Agriculture (MOA) issued the first instructive document for Public-Private-Partnership (PPP) in the agricultural area. Institutions are rosy about the positive role played by PPP model in the construction of agricultural irrigation and water conservancy, especially in the development of high-efficiency and water-saving agriculture industry. As to listed companies, Dayu Water-saving Group Co., Ltd. (300021.SZ) has signed several big orders concerning PPP projects in 2016; Xinjiang Tianye Co., Ltd. (600075.SH) is a leading company in China in terms of the scale of plastic water-saving equipment.
TOP
○SASAC requires advancing mixed-ownership reform, China National Building Material among the first to pilot mixed-ownership reform
------
The Party committee of the State-owned Assets Supervision and Administration Commission (SASAC) held a meeting on Dec. 19 to convey messages sent by the Central Economic Work Conference and study on the implementation of the work. As to deepening supply-side structural reform, further efforts will be made in cutting excessive capacity of industries like iron ＆ steel, coal and etc.; more efforts will be made in disposing "zombie enterprises" and advancing the merger ＆ acquisition and reorganization of central state-owned enterprises (SOEs). As to advancing the SOEs and state-owned assets reform, pilot mixed-ownership reform in civil aviation, telecom, military and etc. industries will be advanced; pilot reform in state-owned assets investment and operation companies will be accelerated.
Media reported earlier that six central SOEs, with China Eastern Airlines Group and China Unicom Group included, will be the first to pilot mixed-ownership reform. SSN learnt that China National Building Material Group Co., Ltd. might also participate in the pilot reform. At present, the reform schemes of the aforesaid enterprises have basically taken shape. 2017 will see the implementation of 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 State Council released the Catalogue of Investment Projects (2016) Approved by the Government on Dec. 20. The circular emphasized that industries plagued by serious overcapacity issues such as steel and iron, cement, and boats and ships are not allowed to apply for new production capacity projects, in an effort to better resolve the issue of excess capacity.
○It is proposed on Hebei province's economic work conference held on Dec. 20 to reduce steelmaking capacity by 19.86 million tons in 2017, a great increase from originally planned 15.62 million tons.
○Bank-securities transfer saw a net inflow of 88 billion yuan last week, making the net inflow in a single week a new high since April.
○On Dec. 20, the Ministry of Industry and Information Technology (MIIT) announced the punishment over new energy vehicle producers that cheated to obtain government's subsidies, and proposed multiple modifications to standardize the subsidies for new energy vehicles.
○China's internet finance heavyweight Ant Financial Service Group announced on Dec. 20 that it will fully initiate its rural financial strategy by providing services like "online/offline" acquaintance credit and supply chain finance.
TOP
[Industry Information]
○13th five-year development plan for e-commerce to release, e-commerce operation companies point development trend
------
As reported by Xinhuanet, the 13th five-year development plan for e-commerce, whose formulation is led by the Ministry of Commerce (MOC), will be jointly released and implemented by the MOC together with the Office of the Central Leading Group for Cyberspace Affairs and the National Development and Reform Commission soon. Goals are set in the plan that by 2020, the trading volume of e-commerce records 40 trillion yuan, online retailing totals 10 trillion yuan and 50 million employees are engaged in relevant industries.
Comment: Research report by Shenwan Hongyuan Securities believes that along with the rise of flow cost and the entrance of traditional brands, the e-commerce industry will enter into refined operation. The concentration ratio of the industry might further improve in the future. As to listed companies, Shenzhen Ellassay Fashion Co., Ltd. (603808.SH) acquired 75 percent equities of Shanghai Buy Quickly Co., Ltd., an e-commerce operation company focusing on bags and suitcases; Hangzhou UCO Cosmetics Co., Ltd., a subsidiary under Qingdao Kingking Applied Chemistry Co., Ltd. (002094.SZ), is a leading company among cosmetics e-commerce operation companies.
○China Mobile to conduct "big connect" strategy to speed up IoT development
------
China Mobile lately held its global partners conference. China Mobile chairman Shang Bing made a keynote speech. Shang points out that China Mobile will fully launch "big connect" strategy and seize the opportunities in the Internet of everything to strive to double the number of connections in 2020 from 2015. Meanwhile, China Mobile will vigorously promote improvement and internationalization of the NB-IoT standard, create a leading infrastructure and innovative environment for IoT and promote global connection of IoT.
Comment: China Unicom recently also said that with the freezing of the NB-IoT standard and promotion of domestic operators and equipment manufacturers, 2017 will become an incubation period for the IoT industry as well as the first year for its commercial use. The application of NB-IoT in utilities and smart city will accelerate. Institutions estimate that China's IoT industry will grow at an annual average rate of 30 percent in the coming years, and reach a scale of over 1.5 trillion yuan in 2018. IoT water meter based on NB-IoT technology of Sanchuan Wisdom Technology Co., Ltd. (300066.SZ) is expected to realize overseas sales next year. Fujian Rongji Software Co., Ltd. (002474.SZ) closely cooperates with upstream and downstream enterprises and operators related to IoT.
TOP
[Announcement Interpretation]
○Changbao Steeltube to step in medical industry
------
Jiangsu Changbao Steeltube Co., Ltd. (002478.SZ) proposes to issue shares at 11.60 yuan per share to acquire 100 percent equities of No.2 Shifang Hospital, 90 percent equities of Yanghe People's Hospital, and 100 percent equities of Reguard Investment, with a transaction price of 992 million yuan, so that to step in medical industry. Meanwhile, it also plans to issue 11.79 million shares at the same price through private placement to raise the supporting fund no more than 137 million yuan for renovation ＆ extension projects of related hospitals. In terms of performance commitment, the said three targets will achieve a total net profit of no less than 9.39 million, 73.10 million, 98.45 million and 110 million yuan respectively from 2016 to 2019.
○Biggest shareholder of China Sports Industry Group to transfer shareholdings, requiring high-quality assets from offer accepter
------
China Sports Industry Group Co., Ltd. (600158.SH) disclosed that its substantial shareholder, Sport Fund Management Center of General Administration of Sport, plans to transfer all its held 186 million shares in the public from Dec. 21 to Jan. 4, accounting for 22.0733 percent equities, and the benchmark price is 17.53 yuan per share. Transferee should have high-quality assets meeting the rule of China Securities Regulatory Commission and able to promote constant development of the listed company, and it should also promise to inject these assets into the listed company during a certain period.
○Baili Engineering Sci ＆ Tech to launch employee shareholding plan
------
Hunan Baili Engineering Sci ＆ Tech Co., Ltd. (603959.SH) approves the first wave of employee shareholding plan, with a upper fundraising limit of 150 million yuan from employees and substantial shareholder based on a ratio of 1:1. Its closing price was 29.27 yuan per share on Dec. 19, and based on this, 5.1247 million shares can be bought at the most in the plan, taking up 2.29 percent of the total equities now.
○China Sun Pharmaceutical Machinery to raise RMB2 bln through private placement for accurate medical treatment, actual controller to greatly support
------
Hunan China Sun Pharmaceutical Machinery Co., Ltd. (300216.SZ) proposes to carry out private placement of no more than 100 million shares, and the date determining benchmark price is set as the first issuance day. Hua Fu Kang Investment held by Liu Xianghua, one of the listed company's actual controllers, will subscribe the shares of no less than 50 percent proportion. It will raise a fund no more than 2 billion yuan, which will be used for "internet-based gene detection, accurate management ＆ service platform for long-distance chronic disease diagnosis and treatment", "Foshan industrial base for intelligent health monitoring watch and intelligent dynamic hemopiezometer" and other projects, so as to create Qianshan chronic disease accurate management ＆ service platform.
○Senior management of Unisplendour Corporation and others increased shareholdings
------
Hangzhou Jointcom Technology Co., Ltd., controlling shareholder of Unisplendour Corporation Limited (000938.SZ), increased 24.73 million shareholdings in the listed company through block trade on Dec. 19. The controlling shareholder of Huawen Media Investment Corporation (000793.SZ) will increase no less than 100 million shareholdings in next six months. Actual controller of Meinian Onehealth Healthcare Holdings Co., Ltd. (002044.SZ) continued to increase 0.95 million shareholdings on Dec. 19 and 20. CEO of China Fortune Land Development Co., Ltd. (600340.SH) on Dec. 20 has increased 0.43 million shareholdings in the listed company.
[Financial Reports Express]
○Jingxi Culture＆ Tourism announced growth forecast in annual report
------
Beijing Jingxi Culture＆ Tourism Co., Ltd. (000802.SZ) announced the growth forecast of 2,350 percent to 2,397 percent in its annual report, mainly as it has finished merging in film ＆ TV ＆ culture sector.
○Meisheng Cultural ＆ Creative proposes high share conversion and dividend
------
Meisheng Cultural ＆ Creative Corp., Ltd. (002699.SZ) announced a growth forecast of 50 to 80 percent in its annual report, and the actual controller proposed a 28-for-10 conversion of capital surplus into shares combined with 1.5 yuan dividend for every 10 shares.
Additionally, Fuan Pharmaceutical (group) Co., Ltd. (300194.SZ) announced a growth forecast of 239 to 268 percent in its annual report, and Wang Tianxiang, actual controller, proposed a 20-for-10 conversion of capital surplus into shares combined with 2 yuan dividend for every 10 shares. In next six months, Wang promised not to decrease the shareholdings, but his son Wang Lu will decrease 19.70 million shareholdings at the most, and several senior managers will also decrease the shareholdings.
[Trading Alarms]
○New Grand Long Packing and Xiantong Rubber ＆ Plastic to issue new shares on Dec. 21
------
Guangdong New Grand Long Packing Co., Ltd. (002836.SZ), mainly engaged in cigarette label, will issue shares at 8.09 yuan per share with an upper subscription limit of 20,000 shares per account; Zhejiang Xiantong Rubber ＆ Plastic Co., Ltd. (603239.SH), mainly engaged in vehicle sealing elements, will issue shares at 21.84 yuan per share with an upper subscription limit of 8,000 shares per account.
TOP
○Central Rural Work Conference held, water saving in agriculture industry embraces policy support again
○SASAC requires advancing mixed-ownership reform, China National Building Material among the first to pilot mixed-ownership reform
○13th five-year development plan for e-commerce to release, e-commerce operation companies point development trend
○Changbao Steeltube to step in medical industry, Biggest shareholder of China Sports Industry Group to transfer shareholdings, requiring high-quality assets from offer accepter
[SSN Focus]
○Central Rural Work Conference held, water saving in agriculture industry embraces policy support again
------
The Central Rural Work Conference, held on Dec. 19-20, proposed to make supply-side reform in agriculture the main theme in next year's rural and agricultural work. It is required to adapt to market demand, optimize product structure, and further prioritize the improvement of the quality of agricultural products; moderately develop scale operation, and enhance operation structure; move faster in technology innovation, and strengthen agricultural development momentum; promote green production, and attach great importance to water saving in the agriculture industry.
Comment: Policies supporting water saving in the agriculture industry are rolled out in succession recently. Nine departments released the National Water Saving Action Plan together with water saving placed in the first place; the National Development and Reform Commission (NDRC) and the Ministry of Agriculture (MOA) issued the first instructive document for Public-Private-Partnership (PPP) in the agricultural area. Institutions are rosy about the positive role played by PPP model in the construction of agricultural irrigation and water conservancy, especially in the development of high-efficiency and water-saving agriculture industry. As to listed companies, Dayu Water-saving Group Co., Ltd. (300021.SZ) has signed several big orders concerning PPP projects in 2016; Xinjiang Tianye Co., Ltd. (600075.SH) is a leading company in China in terms of the scale of plastic water-saving equipment.
TOP
○SASAC requires advancing mixed-ownership reform, China National Building Material among the first to pilot mixed-ownership reform
------
The Party committee of the State-owned Assets Supervision and Administration Commission (SASAC) held a meeting on Dec. 19 to convey messages sent by the Central Economic Work Conference and study on the implementation of the work. As to deepening supply-side structural reform, further efforts will be made in cutting excessive capacity of industries like iron ＆ steel, coal and etc.; more efforts will be made in disposing "zombie enterprises" and advancing the merger ＆ acquisition and reorganization of central state-owned enterprises (SOEs). As to advancing the SOEs and state-owned assets reform, pilot mixed-ownership reform in civil aviation, telecom, military and etc. industries will be advanced; pilot reform in state-owned assets investment and operation companies will be accelerated.
Media reported earlier that six central SOEs, with China Eastern Airlines Group and China Unicom Group included, will be the first to pilot mixed-ownership reform. SSN learnt that China National Building Material Group Co., Ltd. might also participate in the pilot reform. At present, the reform schemes of the aforesaid enterprises have basically taken shape. 2017 will see the implementation of 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 State Council released the Catalogue of Investment Projects (2016) Approved by the Government on Dec. 20. The circular emphasized that industries plagued by serious overcapacity issues such as steel and iron, cement, and boats and ships are not allowed to apply for new production capacity projects, in an effort to better resolve the issue of excess capacity.
○It is proposed on Hebei province's economic work conference held on Dec. 20 to reduce steelmaking capacity by 19.86 million tons in 2017, a great increase from originally planned 15.62 million tons.
○Bank-securities transfer saw a net inflow of 88 billion yuan last week, making the net inflow in a single week a new high since April.
○On Dec. 20, the Ministry of Industry and Information Technology (MIIT) announced the punishment over new energy vehicle producers that cheated to obtain government's subsidies, and proposed multiple modifications to standardize the subsidies for new energy vehicles.
○China's internet finance heavyweight Ant Financial Service Group announced on Dec. 20 that it will fully initiate its rural financial strategy by providing services like "online/offline" acquaintance credit and supply chain finance.
TOP
[Industry Information]
○13th five-year development plan for e-commerce to release, e-commerce operation companies point development trend
------
As reported by Xinhuanet, the 13th five-year development plan for e-commerce, whose formulation is led by the Ministry of Commerce (MOC), will be jointly released and implemented by the MOC together with the Office of the Central Leading Group for Cyberspace Affairs and the National Development and Reform Commission soon. Goals are set in the plan that by 2020, the trading volume of e-commerce records 40 trillion yuan, online retailing totals 10 trillion yuan and 50 million employees are engaged in relevant industries.
Comment: Research report by Shenwan Hongyuan Securities believes that along with the rise of flow cost and the entrance of traditional brands, the e-commerce industry will enter into refined operation. The concentration ratio of the industry might further improve in the future. As to listed companies, Shenzhen Ellassay Fashion Co., Ltd. (603808.SH) acquired 75 percent equities of Shanghai Buy Quickly Co., Ltd., an e-commerce operation company focusing on bags and suitcases; Hangzhou UCO Cosmetics Co., Ltd., a subsidiary under Qingdao Kingking Applied Chemistry Co., Ltd. (002094.SZ), is a leading company among cosmetics e-commerce operation companies.
○China Mobile to conduct "big connect" strategy to speed up IoT development
------
China Mobile lately held its global partners conference. China Mobile chairman Shang Bing made a keynote speech. Shang points out that China Mobile will fully launch "big connect" strategy and seize the opportunities in the Internet of everything to strive to double the number of connections in 2020 from 2015. Meanwhile, China Mobile will vigorously promote improvement and internationalization of the NB-IoT standard, create a leading infrastructure and innovative environment for IoT and promote global connection of IoT.
Comment: China Unicom recently also said that with the freezing of the NB-IoT standard and promotion of domestic operators and equipment manufacturers, 2017 will become an incubation period for the IoT industry as well as the first year for its commercial use. The application of NB-IoT in utilities and smart city will accelerate. Institutions estimate that China's IoT industry will grow at an annual average rate of 30 percent in the coming years, and reach a scale of over 1.5 trillion yuan in 2018. IoT water meter based on NB-IoT technology of Sanchuan Wisdom Technology Co., Ltd. (300066.SZ) is expected to realize overseas sales next year. Fujian Rongji Software Co., Ltd. (002474.SZ) closely cooperates with upstream and downstream enterprises and operators related to IoT.
TOP
[Announcement Interpretation]
○Changbao Steeltube to step in medical industry
------
Jiangsu Changbao Steeltube Co., Ltd. (002478.SZ) proposes to issue shares at 11.60 yuan per share to acquire 100 percent equities of No.2 Shifang Hospital, 90 percent equities of Yanghe People's Hospital, and 100 percent equities of Reguard Investment, with a transaction price of 992 million yuan, so that to step in medical industry. Meanwhile, it also plans to issue 11.79 million shares at the same price through private placement to raise the supporting fund no more than 137 million yuan for renovation ＆ extension projects of related hospitals. In terms of performance commitment, the said three targets will achieve a total net profit of no less than 9.39 million, 73.10 million, 98.45 million and 110 million yuan respectively from 2016 to 2019.
○Biggest shareholder of China Sports Industry Group to transfer shareholdings, requiring high-quality assets from offer accepter
------
China Sports Industry Group Co., Ltd. (600158.SH) disclosed that its substantial shareholder, Sport Fund Management Center of General Administration of Sport, plans to transfer all its held 186 million shares in the public from Dec. 21 to Jan. 4, accounting for 22.0733 percent equities, and the benchmark price is 17.53 yuan per share. Transferee should have high-quality assets meeting the rule of China Securities Regulatory Commission and able to promote constant development of the listed company, and it should also promise to inject these assets into the listed company during a certain period.
○Baili Engineering Sci ＆ Tech to launch employee shareholding plan
------
Hunan Baili Engineering Sci ＆ Tech Co., Ltd. (603959.SH) approves the first wave of employee shareholding plan, with a upper fundraising limit of 150 million yuan from employees and substantial shareholder based on a ratio of 1:1. Its closing price was 29.27 yuan per share on Dec. 19, and based on this, 5.1247 million shares can be bought at the most in the plan, taking up 2.29 percent of the total equities now.
○China Sun Pharmaceutical Machinery to raise RMB2 bln through private placement for accurate medical treatment, actual controller to greatly support
------
Hunan China Sun Pharmaceutical Machinery Co., Ltd. (300216.SZ) proposes to carry out private placement of no more than 100 million shares, and the date determining benchmark price is set as the first issuance day. Hua Fu Kang Investment held by Liu Xianghua, one of the listed company's actual controllers, will subscribe the shares of no less than 50 percent proportion. It will raise a fund no more than 2 billion yuan, which will be used for "internet-based gene detection, accurate management ＆ service platform for long-distance chronic disease diagnosis and treatment", "Foshan industrial base for intelligent health monitoring watch and intelligent dynamic hemopiezometer" and other projects, so as to create Qianshan chronic disease accurate management ＆ service platform.
○Senior management of Unisplendour Corporation and others increased shareholdings
------
Hangzhou Jointcom Technology Co., Ltd., controlling shareholder of Unisplendour Corporation Limited (000938.SZ), increased 24.73 million shareholdings in the listed company through block trade on Dec. 19. The controlling shareholder of Huawen Media Investment Corporation (000793.SZ) will increase no less than 100 million shareholdings in next six months. Actual controller of Meinian Onehealth Healthcare Holdings Co., Ltd. (002044.SZ) continued to increase 0.95 million shareholdings on Dec. 19 and 20. CEO of China Fortune Land Development Co., Ltd. (600340.SH) on Dec. 20 has increased 0.43 million shareholdings in the listed company.
[Financial Reports Express]
○Jingxi Culture＆ Tourism announced growth forecast in annual report
------
Beijing Jingxi Culture＆ Tourism Co., Ltd. (000802.SZ) announced the growth forecast of 2,350 percent to 2,397 percent in its annual report, mainly as it has finished merging in film ＆ TV ＆ culture sector.
○Meisheng Cultural ＆ Creative proposes high share conversion and dividend
------
Meisheng Cultural ＆ Creative Corp., Ltd. (002699.SZ) announced a growth forecast of 50 to 80 percent in its annual report, and the actual controller proposed a 28-for-10 conversion of capital surplus into shares combined with 1.5 yuan dividend for every 10 shares.
Additionally, Fuan Pharmaceutical (group) Co., Ltd. (300194.SZ) announced a growth forecast of 239 to 268 percent in its annual report, and Wang Tianxiang, actual controller, proposed a 20-for-10 conversion of capital surplus into shares combined with 2 yuan dividend for every 10 shares. In next six months, Wang promised not to decrease the shareholdings, but his son Wang Lu will decrease 19.70 million shareholdings at the most, and several senior managers will also decrease the shareholdings.
[Trading Alarms]
○New Grand Long Packing and Xiantong Rubber ＆ Plastic to issue new shares on Dec. 21
------
Guangdong New Grand Long Packing Co., Ltd. (002836.SZ), mainly engaged in cigarette label, will issue shares at 8.09 yuan per share with an upper subscription limit of 20,000 shares per account; Zhejiang Xiantong Rubber ＆ Plastic Co., Ltd. (603239.SH), mainly engaged in vehicle sealing elements, will issue shares at 21.84 yuan per share with an upper subscription limit of 8,000 shares per account.
TOP
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