[Today' Guide]
○ NTA and GAS support sports tourism, market with RMB1 trln to emerge
○ Broadband China speeds up in advancing, information infrastructure brings new opportunities
○ Policy supports transformation and upgrading of agricultural machinery, higher concentration benefits leading enterprises
○ Restructuring of Longzhou Transportation and Zhongnan Heavy Industries approved, third largest shareholder of Jikai Equipment Manufacturing to transfer shares of the company
[SSN Focus]
○ NTA and GAS support sports tourism, market with RMB1 trln to emerge
------
The National Tourism Administration (NTA) and the General Administration of Sport (GAS) released the guidance on the development of sports tourism on Dec. 22, proposing to establish 100 influential sports tourism destinations and 100 national sports tourism demonstration bases by 2020. The total population in sports tourism will reach 1 billion and the total consumption in sports tourism will exceed 1 trillion yuan. It will focus on the development of winter sports tourism, water sports and other new products and new types of business and encourage enterprises to improve the manufacturing of sports tourism equipment.
Comment: Statistics show that the global sports tourism industry is maintaining an annual increase of 14 percent, making it a business with the highest increase in the tourism market. The Chinese sports tourism industry is seeing an annual average growth of 30 to 40 percent. Driven by the increase in residents' incomes, the surging participation in sports and the improvement in the organization of sports events, the domestic sports tourism market will see golden development. Hna-caissa Travel Group Co., Ltd. (000796.SZ) with advantages in events resources and Changbai Mountain Tourism Co., Ltd. (603099.SH) with winter sports resources are favored by institutes.
[SSN Selection]
○ The central government released the method on the appraisal of targets in the ecological civilization construction, which will advance green development and benefit the ecological civilization construction.
○ The Ministry of Finance specifies that no value-added tax will be levied on revenue from non-capital reservation assets management, which will benefit the asset management and investment of institutes.
○ The Civil Aviation Administration of China completed the preparation of the 13th Five-year Plan, proposing to increase the number of general airports to over 500.
○ The Ministry of Water Resources held a meeting recently, requiring promoting the construction of significant water conservancy projects to ensure the investment in projects under construction to exceed 900 billion yuan next year.
○ Sealand Securities Co., Ltd. (000750.SZ) indicated that the bonds involved in the incident will continue to be held by relevant parties. The treasury bond futures recovered to a new high in nine trading days on Dec. 22.
TOP
[Industry Information]
○ Broadband China speeds up in advancing, information infrastructure brings new opportunities
------
The General Office of the National Development and Reform Commission (NDRC) released a circular on Dec. 22, indicating that the NDRC will conduct the construction of the new-generation information infrastructure and the "Internet plus" significant projects in 2017. It will focus on relevant regions with key strategies and establish 100M demonstration network in villages to improve the coverage of fiber optic access network at and under the town level. It will focus on border provinces in the west and coastal province in the southeast to conduct the augmented LTE coverage, new IP microwave, augmented WLAN and other technical demonstrations to speed up in the coverage of network.
Comment: The construction of information infrastructure is the basis of a network power. It is also a specific measure in advancing the "Broadband China" strategy and the "Internet plus" campaign. The information infrastructure covers communication piped network, wireless base stations and trunk equipment. The implementation of such projects will bring opportunities to the communication industry. Hengtong Optic-electric Co., Ltd. (600487.SH) will benefit from the booming photo-communication industry and the profit from optical fibres and cables. Fiberhome Telecommunication Technologies Co., Ltd. (600498.SH) is a major supplier of equipment for the construction of communication infrastructure in China.
TOP
○ Policy supports transformation and upgrading of agricultural machinery, higher concentration benefits leading enterprises
------
The Ministry of Industry and Information Technology (MIIT), Ministry of Agriculture and National Development and Reform Commission on Dec. 22 jointly issued "action plan on the development of agricultural equipment (2016-2025)", which proposed that the categories of agricultural machinery will be basically completed by 2020; fully grasp the manufacturing technologies of core components and parts by 2025, and realize self-sufficiency of 70 percent key parts; comprehensive mechanization rate of crop cultivation and harvest throughout the nation to reach 75 percent.
Comment: the comprehensive mechanization rate of crop cultivation and harvest nationwide currently reach 63 percent, but the agricultural machinery are mainly middle-low end tractors and harvester. In addition, the number of large agricultural machinery manufacturer accounts for only 1.65 percent of the total industry, thus the industry concentration is expected to improve. Securities companies indicate in the research reports that as the industry accelerates remove low-end capacity, and the concentration improved, leading enterprises are expected to see new development opportunities. First Tractor Company Limited (601038.SH) is a leading agricultural machinery manufacturer in China; Xinjiang Machinery Research Institute Co., Ltd. (300159.SZ) focuses on the R＆D, design, production and sales of middle-high end farming and animal husbandry machinery products.
TOP
[Announcement Interpretation]
○ Restructuring of Longzhou Transportation and Zhongnan Heavy Industries approved
------
Restructuring of Fujian Longzhou Transportation Co., Ltd. (002682.SZ) was approved by the China Securities Regulatory Commission (CSRC) unconditionally, and restructuring of Jiangyin Zhongnan Heavy Industries Co., Ltd. (002445.SZ) was approved by the CSRC conditionally.
○ Third largest shareholder of Jikai Equipment Manufacturing to transfer 11 percent equites of the company at 29 yuan per share
------
Dingjie Asset Management, Third largest shareholder of Jikai Equipment Manufacturing Co., Ltd. (002691.SZ) proposes to transfer 22 million shares of the company held by it to Yanre Industrial at 29 yuan per share, accounting for 11 percent of the total share capital of the listed company. The transfer price is 638 million yuan. Yanre Industrial is primarily engaged in industrial investment. Its purpose to accept the transferred shares is to increase shareholding in the company. At the beginning of the year, the controlling shareholder of Jikai Equipment Manufacturing changed. Not long ago, Jing Hua, a large individual investor, has bought shares of the company through secondary market acquisition to 5 percent limit.
○ Lionhead Cement to split cement business at RMB470 bln
------
Taiyuan Lionhead Cement Co., Ltd. (600539.SH) transfers business, assets and liabilities related to the main cement business (including 51 percent equities of Lionhead Zhonglian) to its largest shareholder Lionhead Group at 470 million yuan. The company's cement business has recorded losses for two consecutive years. After the transfer, the company's financial condition will improve. At the same time, the main business of the company will be manufacturing and sales of water faucet and accessories.
○ Actual controller of Ligong Environment and Energy Technology increased shareholding
------
Zhou Fangjie, actual controller of Ningbo Ligong Environment and Energy Technology Co., Ltd. (002322.SZ) on Dec. 22 increased holding 1.38 million shares of the company. Zhou plans to increase no less than 3 million shares and no more than 5 million shares of the company in the next 6 months. Actual controller and senior management of JPMF Guangdong Co., Ltd. (002600.SZ) on Dec. 21 and 22 in total increased holding 9.3 million shares of the company. Part of the senior management of Jiangsu Protruly Vision Technology Group Co., Ltd. (600074.SH) on Dec. 22 in total increased holding 1.75 million shares of the company. Actual controller of Qingdao Hengshun Zhongsheng Group Co., Ltd. (300208.SZ) on Dec. 21 and 22 increased holding 5.3 million shares of the company.
[Trading Alarm]
○ IPOs of three new shares to unveil on Dec. 23
------
CAIP Group (732035.SZ) will offer for subscription at 10.44 yuan per share. The upper limit for each applicant is 28,000 shares. The company is primarily engaged in car accessories; Delixi Xinjiang Transportation Co., Ltd. (732032.SZ) will offer for subscription at 5.81 yuan per share. The upper limit for each applicant is 13,000 shares. The company is primarily engaged in passenger transportation. Xinjiang Sailing Information Technology Co., Ltd. (300588.SZ) will offer subscription at 4.94 yuan per share. The upper limit for each applicant is 10,000 shares. The company is primarily engaged in intelligent security and protection and information engineering.
TOP
○ NTA and GAS support sports tourism, market with RMB1 trln to emerge
○ Broadband China speeds up in advancing, information infrastructure brings new opportunities
○ Policy supports transformation and upgrading of agricultural machinery, higher concentration benefits leading enterprises
○ Restructuring of Longzhou Transportation and Zhongnan Heavy Industries approved, third largest shareholder of Jikai Equipment Manufacturing to transfer shares of the company
[SSN Focus]
○ NTA and GAS support sports tourism, market with RMB1 trln to emerge
------
The National Tourism Administration (NTA) and the General Administration of Sport (GAS) released the guidance on the development of sports tourism on Dec. 22, proposing to establish 100 influential sports tourism destinations and 100 national sports tourism demonstration bases by 2020. The total population in sports tourism will reach 1 billion and the total consumption in sports tourism will exceed 1 trillion yuan. It will focus on the development of winter sports tourism, water sports and other new products and new types of business and encourage enterprises to improve the manufacturing of sports tourism equipment.
Comment: Statistics show that the global sports tourism industry is maintaining an annual increase of 14 percent, making it a business with the highest increase in the tourism market. The Chinese sports tourism industry is seeing an annual average growth of 30 to 40 percent. Driven by the increase in residents' incomes, the surging participation in sports and the improvement in the organization of sports events, the domestic sports tourism market will see golden development. Hna-caissa Travel Group Co., Ltd. (000796.SZ) with advantages in events resources and Changbai Mountain Tourism Co., Ltd. (603099.SH) with winter sports resources are favored by institutes.
[SSN Selection]
○ The central government released the method on the appraisal of targets in the ecological civilization construction, which will advance green development and benefit the ecological civilization construction.
○ The Ministry of Finance specifies that no value-added tax will be levied on revenue from non-capital reservation assets management, which will benefit the asset management and investment of institutes.
○ The Civil Aviation Administration of China completed the preparation of the 13th Five-year Plan, proposing to increase the number of general airports to over 500.
○ The Ministry of Water Resources held a meeting recently, requiring promoting the construction of significant water conservancy projects to ensure the investment in projects under construction to exceed 900 billion yuan next year.
○ Sealand Securities Co., Ltd. (000750.SZ) indicated that the bonds involved in the incident will continue to be held by relevant parties. The treasury bond futures recovered to a new high in nine trading days on Dec. 22.
TOP
[Industry Information]
○ Broadband China speeds up in advancing, information infrastructure brings new opportunities
------
The General Office of the National Development and Reform Commission (NDRC) released a circular on Dec. 22, indicating that the NDRC will conduct the construction of the new-generation information infrastructure and the "Internet plus" significant projects in 2017. It will focus on relevant regions with key strategies and establish 100M demonstration network in villages to improve the coverage of fiber optic access network at and under the town level. It will focus on border provinces in the west and coastal province in the southeast to conduct the augmented LTE coverage, new IP microwave, augmented WLAN and other technical demonstrations to speed up in the coverage of network.
Comment: The construction of information infrastructure is the basis of a network power. It is also a specific measure in advancing the "Broadband China" strategy and the "Internet plus" campaign. The information infrastructure covers communication piped network, wireless base stations and trunk equipment. The implementation of such projects will bring opportunities to the communication industry. Hengtong Optic-electric Co., Ltd. (600487.SH) will benefit from the booming photo-communication industry and the profit from optical fibres and cables. Fiberhome Telecommunication Technologies Co., Ltd. (600498.SH) is a major supplier of equipment for the construction of communication infrastructure in China.
TOP
○ Policy supports transformation and upgrading of agricultural machinery, higher concentration benefits leading enterprises
------
The Ministry of Industry and Information Technology (MIIT), Ministry of Agriculture and National Development and Reform Commission on Dec. 22 jointly issued "action plan on the development of agricultural equipment (2016-2025)", which proposed that the categories of agricultural machinery will be basically completed by 2020; fully grasp the manufacturing technologies of core components and parts by 2025, and realize self-sufficiency of 70 percent key parts; comprehensive mechanization rate of crop cultivation and harvest throughout the nation to reach 75 percent.
Comment: the comprehensive mechanization rate of crop cultivation and harvest nationwide currently reach 63 percent, but the agricultural machinery are mainly middle-low end tractors and harvester. In addition, the number of large agricultural machinery manufacturer accounts for only 1.65 percent of the total industry, thus the industry concentration is expected to improve. Securities companies indicate in the research reports that as the industry accelerates remove low-end capacity, and the concentration improved, leading enterprises are expected to see new development opportunities. First Tractor Company Limited (601038.SH) is a leading agricultural machinery manufacturer in China; Xinjiang Machinery Research Institute Co., Ltd. (300159.SZ) focuses on the R＆D, design, production and sales of middle-high end farming and animal husbandry machinery products.
TOP
[Announcement Interpretation]
○ Restructuring of Longzhou Transportation and Zhongnan Heavy Industries approved
------
Restructuring of Fujian Longzhou Transportation Co., Ltd. (002682.SZ) was approved by the China Securities Regulatory Commission (CSRC) unconditionally, and restructuring of Jiangyin Zhongnan Heavy Industries Co., Ltd. (002445.SZ) was approved by the CSRC conditionally.
○ Third largest shareholder of Jikai Equipment Manufacturing to transfer 11 percent equites of the company at 29 yuan per share
------
Dingjie Asset Management, Third largest shareholder of Jikai Equipment Manufacturing Co., Ltd. (002691.SZ) proposes to transfer 22 million shares of the company held by it to Yanre Industrial at 29 yuan per share, accounting for 11 percent of the total share capital of the listed company. The transfer price is 638 million yuan. Yanre Industrial is primarily engaged in industrial investment. Its purpose to accept the transferred shares is to increase shareholding in the company. At the beginning of the year, the controlling shareholder of Jikai Equipment Manufacturing changed. Not long ago, Jing Hua, a large individual investor, has bought shares of the company through secondary market acquisition to 5 percent limit.
○ Lionhead Cement to split cement business at RMB470 bln
------
Taiyuan Lionhead Cement Co., Ltd. (600539.SH) transfers business, assets and liabilities related to the main cement business (including 51 percent equities of Lionhead Zhonglian) to its largest shareholder Lionhead Group at 470 million yuan. The company's cement business has recorded losses for two consecutive years. After the transfer, the company's financial condition will improve. At the same time, the main business of the company will be manufacturing and sales of water faucet and accessories.
○ Actual controller of Ligong Environment and Energy Technology increased shareholding
------
Zhou Fangjie, actual controller of Ningbo Ligong Environment and Energy Technology Co., Ltd. (002322.SZ) on Dec. 22 increased holding 1.38 million shares of the company. Zhou plans to increase no less than 3 million shares and no more than 5 million shares of the company in the next 6 months. Actual controller and senior management of JPMF Guangdong Co., Ltd. (002600.SZ) on Dec. 21 and 22 in total increased holding 9.3 million shares of the company. Part of the senior management of Jiangsu Protruly Vision Technology Group Co., Ltd. (600074.SH) on Dec. 22 in total increased holding 1.75 million shares of the company. Actual controller of Qingdao Hengshun Zhongsheng Group Co., Ltd. (300208.SZ) on Dec. 21 and 22 increased holding 5.3 million shares of the company.
[Trading Alarm]
○ IPOs of three new shares to unveil on Dec. 23
------
CAIP Group (732035.SZ) will offer for subscription at 10.44 yuan per share. The upper limit for each applicant is 28,000 shares. The company is primarily engaged in car accessories; Delixi Xinjiang Transportation Co., Ltd. (732032.SZ) will offer for subscription at 5.81 yuan per share. The upper limit for each applicant is 13,000 shares. The company is primarily engaged in passenger transportation. Xinjiang Sailing Information Technology Co., Ltd. (300588.SZ) will offer subscription at 4.94 yuan per share. The upper limit for each applicant is 10,000 shares. The company is primarily engaged in intelligent security and protection and information engineering.
TOP
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