[Today' Guide]
○ State Council executive meeting promotes health industry, specifies key tasks in medical reform
○ China Machine Tool 2020 to release, support industry development in 4 aspects
○ Red Phase Instruments to tap into military industry and rail transit area, Global Top E-Commerce to expand cross-border ecommerce business
○ Bohai Capital Holding s to expand aircraft leasing, Hailide proposes high share conversion and dividend
[SSN Focus]
○ State Council executive meeting promotes health industry, specifies key tasks in medical reform
------
The State Council executive meeting on Dec. 21 passed the 13th Five-Year Plan for sanitation and health, urging to expand application of "Internet plus medicine", improve hierarchical treatment system, support social power to participate health service in various forms, adapt new demands for fully implementing two-child policy and reasonably allocate public service resources in material and child hygiene, education and social security. The National Health and Family Planning Commission held a press conference to introduce experiences in promoting medical reform. Shanghai Health and Family Planning Commission proposes to promote family doctor to undertake the role as hierarchical treatment gatekeeper.
Comment: Securities companies believe that with the development and standardization of social medical services, private hospitals will see rapid development; the construction of hierarchical treatment system will accelerate and the demands for Internet and big data-based medical information system will expand; the demand and supply of children drugs are in extreme imbalance. The implementation of two-child policy will accelerate the development of the children drug market.
[SSN Selection]
○ The 14th meeting of the Central Leading Group for Financial and Economic Affairs was held on Dec. 21, briefing the National Energy Administration's works in promoting heating with clean energy in winter in North China.
○ The general office of the National Development and Reform Commission issued the (trial) measures on the management of PPP project library in traditional infrastructure to further regulate operation process.
○ China's central bank announces to expand the pilot program of RMB Qualified Foreign Institutional Investors (RQFII) to Ireland with an investment quota of 50 billion yuan.
○ Beijing will remove the red alert for heavy air pollution at 12 PM, Oct. 21, and all emergency measures will terminate then.
○ It is learnt from the recent annual conference of China Graphene Alliance Industry that China will prepare a series of new policies on promoting application of graphene during the 13th Five-Year Plan period.
TOP
[Industry Information]
○ China Machine Tool 2020 to release, support industry development in 4 aspects
------
SSN learnt that China Machine Tool 2020 drafted by China Machine Tool ＆ Tool Builders' Association now enters the final stage of deliberation and will be released soon. The draft proposes that the application of Internet and intelligent machine tool are a trend of the machine tool. The industrialization of high-end numerically-controlled machine tool, refining of medium-end high-end numerically-controlled machine, the automation of numerically-controlled system and functional components and the mass-production and application of industrial robots are major fields.
The draft also comes up with 4 supportive polices: adapt preferential tax policy for home-made high-end numerically-controlled machine tool, cancel free import of machine tool; improve industry protection mechanism; encourage use of home-made numerically-controlled equipment.
○ Policy supports development of stationery and sporting goods industry, medium and high-end products supply expected to expand
------
The Ministry of Industry and Information Technology on Dec. 21 released the guideline on promoting the upgrading and development of the stationery and sporting goods industry, proposing to fully improve the technical and equipment level of the stationery and sporting goods industry, remarkably enhance technological innovative ability, improve medium and high-end products supply, remarkably improve product quality and continuously expand brand influences. It will also increase tax and financial supports.
Comment: The stationery and sporting goods industry covers pens, office stationery, sports equipment and accessories and outdoor exercise equipment. China's stationery and sporting goods industry is huge yet not powerful. To solve this problem will help expand the supply of medium and high-end products and cultivate new consumption growth point. Shanghai M＆G Stationery INC. (603899.SH) ranks top in China's writing instrument market. HL Corp (Shenzhen) (002105.SZ) is mainly engaged in sports equipment and bicycle accessories. The company strives to provide spare and accessory parts for Mobike.
○ Butadiene prices continue to rise, supply likely to tighten further
------
Butadiene prices in East China continue to rise on Dec. 21. The quoted reference price was 19,000 yuan per tonne. Butadiene manufactures in Northeast China and Sinopec made a huge lift on their quoted prices on Dec. 20. Butadiene prices rose nearly 9 percent on the day, and have grown by a cumulative total of as high as 225 percent since this year. Currently, the butadiene market is in short supply. Imports are limited. Sellers are reluctant to sell.
Comment: according to the supply and demand situation, butadiene product equipment of various producers are running at low load or undergo an overhaul with halt of production, while the downstream synthetic rubber is short of supply. Relevant manufacturers estimated that driven by low inventory and equipment maintenance in the near term, the profitability of the butadiene industry is optimistic. Institutions believe that ethylene made of lightening raw material will gradually squeeze out naphtha cracking process. The production of butadiene, the by-product from the first technique is far less than the latter. In the future, the supply of butadiene is likely to be tighter.
TOP
[Announcement Interpretation]
○ Red Phase Instruments to buy two companies with 1.7 billion yuan, tapping into military industry and rail transit area
------
Xiamen Red Phase Instruments Inc. (300427.SZ) proposes to buy the entire equities of Yinchuan Wolong and 67.54 percent equities of Star-wave Communication Tech Corporation at the valuations of 1.17 billion yuan and 523 million yuan respectively through private placement and cash payment. The issuing price of private placement is 16.87 yuan per share. The company also plans to raise supporting fund of 969 million yuan through private placement at the same issuing price.
Upon completion of the transaction, Red Phase Instruments will rapidly tap into military electronics railway and rail transit sectors. According to the performance commitment, net profit of Yinchuan Wolong from 2017 to 2019 will be 316 million yuan; net profits of Star-wave Communication Tech Corporation after deducted of non-recurring profits or losses will be 43 million yuan, 51.6 million yuan and 61.92 million yuan respectively.
○ Global Top E-Commerce invests RMB2.2 bln to expand cross-border ecommerce business
------
Global Top E-Commerce Co., Ltd. (002640.SZ) proposes to purchase the entire equities of U1baby and 84.61 percent equities of Bailun Technology at the valuation of 2.2 billion yuan through private placement and cash payment. The valuations of the transactions are 1.79 billion yuan (appreciation rate: 1144.18 percent) and 0.41 billion yuan (913.93 percent) respectively, and the issuing price is 15.93 yuan per share. At the same time, the company proposes to raise supporting fund of no more than 758 million yuan at the issuing price of 18.64 yuan per share. The counterparty committed that net profits of U1baby from 2016 to 2019 will be no less than 110 million yuan, 134 million yuan, 167 million yuan and 208 million yuan respectively. And net profits of Bailun Technology will be no less than 24 million yuan, 43.5 million yuan, 61 million yuan and 79 million yuan respectively.
TOP
○ Bohai Capital Holding spends nearly RMB10 bln to expand aircraft leasing
------
Bohai Capital Holding Co., Ltd. (000415.SZ) proposes to acquire the commercial aircraft leasing business of CIT, a company listed on the New York Stock Exchange. The transaction value is approximately 9,995 million dollars (equivalent to 66,746 million yuan). As of June 30, 2016, the subject assets include 307 aircrafts, order of 132 aircrafts. The company's revenue in 2015 was 1,190 million dollars, and the net profit was 386 million yuan. Upon completion of this transaction, Bohai Capital Holding will become the third largest aircraft leasing company in the world, ranking next to just GECAS and AerCap.
○ Shengli and Winall Hi-tech Seed bought through secondary market acquisition to 5 percent limit
------
Shandong Shengli Co., Ltd. (000407.SZ) was bought by Huijin Shengli No.2 Asset Management under Guangzhou Futures to 5 percent through secondary acquisition. The asset management plan has bought in and held 44,004,200 shares of the company from Dec. 2, accounting for 5 percent of the total share capital of the company. Guangzhou Futures claimed that actual client of the asset management plan Lai Ganfeng has long been optimistic about the prospect of new energy and clean energy industries and the future development of the listed company. He may continue to buy in shares of the company in the next 12 months. It is learnt that Lai is an elite in the IT industry. He has set up Guangzhou Shenke Digital Technology and Shenkeyuan Software Engineering in succession. Lai is currently the actual controller of Hunan Tianrun Digital Entertainment＆ Cultural Media Co., Ltd. (002113.SZ), a listed company.
Zhang Qin, chairman and general manager of Winall Hi-tech Seed Co., Ltd. (300087.SZ) as well as a shareholder with more than 5 percent shareholding of the company, on Dec. 19 and Dec. 20 in total increased holding 6,172,400 shares of the company, accounting for 1.93 percent of the total share capital of the company. Her shareholding thus increased from 8.69 percent to 10.62 percent. Zhang indicates that she is confident about the prospect of the company. It cannot roll out that Zhang will continue to increase shareholding in the company.
○ Restructuring of Wonders Information Co., Ltd. (300168.SZ) and Guangzhou Lingnan Group Holdings Company Limited was approved by China Securities Regulatory Commission (CSRC) unconditionally. Restructuring of Guangdong Hongtu Technology (Holdings) Co., Ltd. (002101.SZ) was approved conditionally.
[Financial Reports Express]
○ Hailide proposes high share conversion and dividend
------
Zhejiang Hailide New Material Co., Ltd. (002206.SZ) forecast 30 percent to 60 percent growth in its annual report, and its actual controller proposes 15-for-10 conversion of capital surplus into shares combined with 5 yuan dividend for every 10 shares.
[Trading Alarms]
○ IPOs of three new shares to unveil on Dec. 22
------
G-bits (732444.SZ) will offer for subscription at 54 yuan per share. The upper limit for each applicant is 17,000 shares. The company is primarily engaged in online games. Huazheng New Material (732186.SZ) will offer for subscription at 5.37 yuan per share. The upper limit for each applicant is 12,000 shares. The company is primarily engaged in copper-clad plate products. Malion New Materials Co., Ltd. (300586.SZ) will offer for subscription at 9.3 yuan per share. The upper limit for each applicant is 9,500 shares. The company is primarily engaged in plastic color concentrate.
TOP
○ State Council executive meeting promotes health industry, specifies key tasks in medical reform
○ China Machine Tool 2020 to release, support industry development in 4 aspects
○ Red Phase Instruments to tap into military industry and rail transit area, Global Top E-Commerce to expand cross-border ecommerce business
○ Bohai Capital Holding s to expand aircraft leasing, Hailide proposes high share conversion and dividend
[SSN Focus]
○ State Council executive meeting promotes health industry, specifies key tasks in medical reform
------
The State Council executive meeting on Dec. 21 passed the 13th Five-Year Plan for sanitation and health, urging to expand application of "Internet plus medicine", improve hierarchical treatment system, support social power to participate health service in various forms, adapt new demands for fully implementing two-child policy and reasonably allocate public service resources in material and child hygiene, education and social security. The National Health and Family Planning Commission held a press conference to introduce experiences in promoting medical reform. Shanghai Health and Family Planning Commission proposes to promote family doctor to undertake the role as hierarchical treatment gatekeeper.
Comment: Securities companies believe that with the development and standardization of social medical services, private hospitals will see rapid development; the construction of hierarchical treatment system will accelerate and the demands for Internet and big data-based medical information system will expand; the demand and supply of children drugs are in extreme imbalance. The implementation of two-child policy will accelerate the development of the children drug market.
[SSN Selection]
○ The 14th meeting of the Central Leading Group for Financial and Economic Affairs was held on Dec. 21, briefing the National Energy Administration's works in promoting heating with clean energy in winter in North China.
○ The general office of the National Development and Reform Commission issued the (trial) measures on the management of PPP project library in traditional infrastructure to further regulate operation process.
○ China's central bank announces to expand the pilot program of RMB Qualified Foreign Institutional Investors (RQFII) to Ireland with an investment quota of 50 billion yuan.
○ Beijing will remove the red alert for heavy air pollution at 12 PM, Oct. 21, and all emergency measures will terminate then.
○ It is learnt from the recent annual conference of China Graphene Alliance Industry that China will prepare a series of new policies on promoting application of graphene during the 13th Five-Year Plan period.
TOP
[Industry Information]
○ China Machine Tool 2020 to release, support industry development in 4 aspects
------
SSN learnt that China Machine Tool 2020 drafted by China Machine Tool ＆ Tool Builders' Association now enters the final stage of deliberation and will be released soon. The draft proposes that the application of Internet and intelligent machine tool are a trend of the machine tool. The industrialization of high-end numerically-controlled machine tool, refining of medium-end high-end numerically-controlled machine, the automation of numerically-controlled system and functional components and the mass-production and application of industrial robots are major fields.
The draft also comes up with 4 supportive polices: adapt preferential tax policy for home-made high-end numerically-controlled machine tool, cancel free import of machine tool; improve industry protection mechanism; encourage use of home-made numerically-controlled equipment.
○ Policy supports development of stationery and sporting goods industry, medium and high-end products supply expected to expand
------
The Ministry of Industry and Information Technology on Dec. 21 released the guideline on promoting the upgrading and development of the stationery and sporting goods industry, proposing to fully improve the technical and equipment level of the stationery and sporting goods industry, remarkably enhance technological innovative ability, improve medium and high-end products supply, remarkably improve product quality and continuously expand brand influences. It will also increase tax and financial supports.
Comment: The stationery and sporting goods industry covers pens, office stationery, sports equipment and accessories and outdoor exercise equipment. China's stationery and sporting goods industry is huge yet not powerful. To solve this problem will help expand the supply of medium and high-end products and cultivate new consumption growth point. Shanghai M＆G Stationery INC. (603899.SH) ranks top in China's writing instrument market. HL Corp (Shenzhen) (002105.SZ) is mainly engaged in sports equipment and bicycle accessories. The company strives to provide spare and accessory parts for Mobike.
○ Butadiene prices continue to rise, supply likely to tighten further
------
Butadiene prices in East China continue to rise on Dec. 21. The quoted reference price was 19,000 yuan per tonne. Butadiene manufactures in Northeast China and Sinopec made a huge lift on their quoted prices on Dec. 20. Butadiene prices rose nearly 9 percent on the day, and have grown by a cumulative total of as high as 225 percent since this year. Currently, the butadiene market is in short supply. Imports are limited. Sellers are reluctant to sell.
Comment: according to the supply and demand situation, butadiene product equipment of various producers are running at low load or undergo an overhaul with halt of production, while the downstream synthetic rubber is short of supply. Relevant manufacturers estimated that driven by low inventory and equipment maintenance in the near term, the profitability of the butadiene industry is optimistic. Institutions believe that ethylene made of lightening raw material will gradually squeeze out naphtha cracking process. The production of butadiene, the by-product from the first technique is far less than the latter. In the future, the supply of butadiene is likely to be tighter.
TOP
[Announcement Interpretation]
○ Red Phase Instruments to buy two companies with 1.7 billion yuan, tapping into military industry and rail transit area
------
Xiamen Red Phase Instruments Inc. (300427.SZ) proposes to buy the entire equities of Yinchuan Wolong and 67.54 percent equities of Star-wave Communication Tech Corporation at the valuations of 1.17 billion yuan and 523 million yuan respectively through private placement and cash payment. The issuing price of private placement is 16.87 yuan per share. The company also plans to raise supporting fund of 969 million yuan through private placement at the same issuing price.
Upon completion of the transaction, Red Phase Instruments will rapidly tap into military electronics railway and rail transit sectors. According to the performance commitment, net profit of Yinchuan Wolong from 2017 to 2019 will be 316 million yuan; net profits of Star-wave Communication Tech Corporation after deducted of non-recurring profits or losses will be 43 million yuan, 51.6 million yuan and 61.92 million yuan respectively.
○ Global Top E-Commerce invests RMB2.2 bln to expand cross-border ecommerce business
------
Global Top E-Commerce Co., Ltd. (002640.SZ) proposes to purchase the entire equities of U1baby and 84.61 percent equities of Bailun Technology at the valuation of 2.2 billion yuan through private placement and cash payment. The valuations of the transactions are 1.79 billion yuan (appreciation rate: 1144.18 percent) and 0.41 billion yuan (913.93 percent) respectively, and the issuing price is 15.93 yuan per share. At the same time, the company proposes to raise supporting fund of no more than 758 million yuan at the issuing price of 18.64 yuan per share. The counterparty committed that net profits of U1baby from 2016 to 2019 will be no less than 110 million yuan, 134 million yuan, 167 million yuan and 208 million yuan respectively. And net profits of Bailun Technology will be no less than 24 million yuan, 43.5 million yuan, 61 million yuan and 79 million yuan respectively.
TOP
○ Bohai Capital Holding spends nearly RMB10 bln to expand aircraft leasing
------
Bohai Capital Holding Co., Ltd. (000415.SZ) proposes to acquire the commercial aircraft leasing business of CIT, a company listed on the New York Stock Exchange. The transaction value is approximately 9,995 million dollars (equivalent to 66,746 million yuan). As of June 30, 2016, the subject assets include 307 aircrafts, order of 132 aircrafts. The company's revenue in 2015 was 1,190 million dollars, and the net profit was 386 million yuan. Upon completion of this transaction, Bohai Capital Holding will become the third largest aircraft leasing company in the world, ranking next to just GECAS and AerCap.
○ Shengli and Winall Hi-tech Seed bought through secondary market acquisition to 5 percent limit
------
Shandong Shengli Co., Ltd. (000407.SZ) was bought by Huijin Shengli No.2 Asset Management under Guangzhou Futures to 5 percent through secondary acquisition. The asset management plan has bought in and held 44,004,200 shares of the company from Dec. 2, accounting for 5 percent of the total share capital of the company. Guangzhou Futures claimed that actual client of the asset management plan Lai Ganfeng has long been optimistic about the prospect of new energy and clean energy industries and the future development of the listed company. He may continue to buy in shares of the company in the next 12 months. It is learnt that Lai is an elite in the IT industry. He has set up Guangzhou Shenke Digital Technology and Shenkeyuan Software Engineering in succession. Lai is currently the actual controller of Hunan Tianrun Digital Entertainment＆ Cultural Media Co., Ltd. (002113.SZ), a listed company.
Zhang Qin, chairman and general manager of Winall Hi-tech Seed Co., Ltd. (300087.SZ) as well as a shareholder with more than 5 percent shareholding of the company, on Dec. 19 and Dec. 20 in total increased holding 6,172,400 shares of the company, accounting for 1.93 percent of the total share capital of the company. Her shareholding thus increased from 8.69 percent to 10.62 percent. Zhang indicates that she is confident about the prospect of the company. It cannot roll out that Zhang will continue to increase shareholding in the company.
○ Restructuring of Wonders Information Co., Ltd. (300168.SZ) and Guangzhou Lingnan Group Holdings Company Limited was approved by China Securities Regulatory Commission (CSRC) unconditionally. Restructuring of Guangdong Hongtu Technology (Holdings) Co., Ltd. (002101.SZ) was approved conditionally.
[Financial Reports Express]
○ Hailide proposes high share conversion and dividend
------
Zhejiang Hailide New Material Co., Ltd. (002206.SZ) forecast 30 percent to 60 percent growth in its annual report, and its actual controller proposes 15-for-10 conversion of capital surplus into shares combined with 5 yuan dividend for every 10 shares.
[Trading Alarms]
○ IPOs of three new shares to unveil on Dec. 22
------
G-bits (732444.SZ) will offer for subscription at 54 yuan per share. The upper limit for each applicant is 17,000 shares. The company is primarily engaged in online games. Huazheng New Material (732186.SZ) will offer for subscription at 5.37 yuan per share. The upper limit for each applicant is 12,000 shares. The company is primarily engaged in copper-clad plate products. Malion New Materials Co., Ltd. (300586.SZ) will offer for subscription at 9.3 yuan per share. The upper limit for each applicant is 9,500 shares. The company is primarily engaged in plastic color concentrate.
TOP
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