[Today's Guide]
○ Beite Technology reports highest growth in Shanghai bourse, stocks whose performance exceed expectation favored by investors
○ Export tariff of nitrogen phosphorus fertilizer export canceled, demand and supply of industry likely to improve
○ Guo Changwei to become new controller of Zhongrun Resources Investment, Guo Xianxing and his son held 10pct. shares in Haida Rubber and Plastic
○ Hainan Strait Shipping and others approved CSRC for reorganization, Ruize New Building Material proposes high share conversion and dividend
[SSN Focus]
○ Beite Technology reports highest growth in Shanghai bourse, stocks whose performance exceed expectation favored by investors
------
The Shanghai Stock Exchange published the disclosure time of 2016 annual reports. The first annual report in the Shanghai bourse will be issued by Shanghai Beite Technology Co., Ltd. (603009.SH) on January 14, 2017, which will be followed by Beijing Dahao Technology Corporation Limited (603025.SH), Guizhou Chitianhua Co., Ltd. (600227.SH), Wuhan Thalys Medical Technology Inc. (603716.SH), Shanxi Antai Group Co., Ltd. (600408.SH), Yunnan Jinggu Forestry Co., Ltd. (600265.SH), Shandong Jiangquan Industry Co., Ltd. (600212.SH), Anxin Trust Co., Ltd. (600816.SH). These companies will disclose their annual reports before next February. In the above companies, the earnings of Anxin Trust in the first three quarters will be 2.3 billion yuan, and it announced that its whole-year performance has improved significantly; Jinggu Forestry and Jiangquan Industry also realized profits in the first three quarters, and expected to turn year on year deficit into profits.
Comment: according to past experience, market usually pay greater attention to the listed companies that disclose their annual reports earlier. Subsequently, stocks whose performance exceed expectation also expected to be favored by the market. Securities companies pointed out in the research report that according to the data of the third quarter, food＆ beverage, forage breeding, chemical pharmacy industries saw better match of valuation and profits. In addition, since the next half year, the prices of chemical products in general surged. Such products will likely to continue to surge in the future. Investment opportunities include PTA, whose supply and demand see constant improvement, polyester filament yarn, and spandex. Demand for fertilizer and pesticide also increased, leading the agrochemical industry to bottom out.
[SSN Selection]
○ Promote "Made in China 2025" conference and the 4th meeting of National Manufacturing Power Construction Leading Group was held on Dec. 23 in Changsha City, Hunan Province.
○ Chinese scientist realized ten photon pairs for the first time and break world record. This achievement could be used large scale of quantum information technology.
○ Nuclear reactor zero power device "Venus II" on Dec. 23 realized initial criticality, signaling China has reached international advanced level as to the R＆D of new generation zero power device of nuclear reactor.
○ Baidu launched 3D map at the smart travel ecology conference held on Dec. 23, and indicated that it will make greater efforts in walking AR navigation, indoor map, 4K map, and trajectory navigation features.
○ Feng Zhenglin, head of the Civil Aviation Administration, recently indicated that the growth of China's air traffic has the ceiling of guarantee capability. China should strive to launch concrete new policies to guide the healthy and orderly development of low-cost airlines.
TOP
[Industry Information]
○ Export tariff of nitrogen phosphorus fertilizer export canceled, demand and supply of industry likely to improve
------
Ministry of Finance disclosed at its official website that China will made partial adjustment to the import and export tariff. The export tariff of nitrogen phosphorus fertilizers will be canceled, and export tariff of the ternary compound fertilizer will be properly reduced. Data shows that the export tariff of urea and diammonium hydrogen phosphate were 80 yuan and 100 yuan per ton in 2016, and the tax rate of the ternary compound fertilizer was 30 percent. After this adjustment, the export tariff of urea and diammonium hydrogen phosphate will be canceled, and the tax rate of the ternary compound fertilizer will be 20 percent.
Comment: currently, the export of nitrogen phosphorus fertilizer accounts for 10 to 15 percent of the total of the industry. The reduction of tariff will improve the competitiveness of China's fertilizer export, and enhance the supply and demand of the industry. Driven by environmental protection examination and price hike, the prices of urea and diammonium hydrogen phosphate continue to increase. The price of urea has improved by nearly 40 percent from the low in August. Securities companies indicated in the research report that several companies will see substantial growth of performance due to price hike, including Yunnan Yuntianhua Co., Ltd. (600096.SH), and Shandong Hualu-Hengsheng Chemical Co., Ltd. (600426.SH), a leading coal head of urea manufacturer.
○ Parking difficulty heightened, construction of facilities expected to accelerate
------
Cheng Zhenggao, head of the Ministry of Housing and Urban-Rural Development (MOHURD) on Dec. 24 says that one of the reasons that cause the parking difficulty is that China has not prepared well for the explosive growth of cars. He says that the shortage of urban parking lots is about 50 percent. According to this estimation, China's parking lots shortage is about 50 million. At the same time, China's private cars increased at about 18 million each year. With the increase of private cars, the contradiction become increasingly heightened. In the next step, China will further open the market, to attract social capitals in construction of parking lots, and increase the development of underground space.
Comments: In recent years, in order to promote the construction of parking lots, the National Development and Reform Commission (NDRC), the Ministry of Housing and Urban-Rural Development and other departments introduced a series of support policies. The construction of parking lots construction is an important area of cooperation in the PPP model. The State Council clearly stated that China encourages social capital to invest in the construction of parking lots and other municipal infrastructure projects. Anhui Honglu Steel Construction (Group) Co., Ltd. (002541.SZ) recently signed a cooperation agreement with Tiancheng Zhiyuan Co., Ltd, and is expected to use the latter's local resources and the cooperation platform with government to carry out steel-structure residential and 3D garage business. Shenzhen Jieshun Science And Technology Industry Co., Ltd. (002609.SZ) forests to grow 20 to 50 percent for the year of 2016 duet to the fast development of its intelligent community and intelligent parking lots business.
TOP
[Announcement Interpretation]
○ Guo Changwei to become new controller of Zhongrun Resources Investment
------
Nanwu Bei'an Asset Management Co., Ltd., the controlling shareholder of Zhongrun Resources Investment Corporation (000506.SZ), plans to transfer its 233 million shares it holds in the listed company to Ningbo Ransheng Shengyuan Investment Management Partnership at 9.69 yuan per share for a total of about 2,258 million yuan.
After the transfer, the actual control of Zhongrun Resources Investment will change to Guo Changwei. In the third quarter of this year, Guo Changwei bought shares in another listed company Kee Ever Bright Decorative Technology Co., Ltd. (002464.SZ). According to announcement, Guo's companies are mainly involved in investment, real estate and property and health.
○ Guo Xianxing and his son held 10pct. shares in Haida Rubber and Plastic
------
Jiangyin Haida Rubber and Plastic Co., Ltd. (300320.SZ) announces that Guo Xianxing and his son Guo Jianyong increased shareholding by a total of 14,667,400 shares, accounting for 5 percent of the company's capital share, at 17.54 yuan to 20.13 yuan per share from Nov. 22 to Dec. 22. So far, Guo Xianxing and his son holds a total of 29,334,900 shares in the company, accounting for 10 percent of the company's capital share.
Guo Xianxing and his son said that they increased shareholding in the company because they are optimistic about the A-share market and bullish on the company's prospect. Guo Xianxing and his son are the actual controller of the listed company Yotrio Group Co., Ltd. (002489.SZ).
TOP
○ Hainan Strait Shipping and others approved CSRC for reorganization
------
Hainan Strait Shipping Co., Ltd. (002320.SZ) and Besttone Holding Co., Ltd. (600640.SH) obtained conditional approval from the China Securities Regulatory Commission (CSRC) for their reorganization. Yinyi Real Estate Co., Ltd. (000981.SZ) obtained unconditional approval from the CSRC for its reorganization.
○ H＆T Intelligent Control introduces strategic investor
------
Liu Jianwei, the actual controller of Shenzhen H＆T Intelligent Control Co., Ltd. (002402.SZ), transferred 21.2 million shares to Shenzhen Qianhai Huxing Asset Management Co., Ltd. via block trading on Dec. 23, accounting for 2.55 percent of the company's capital share, aiming to take use of the latter's quality resources for industry integration so as to promote fast development of the company's main business.
[Financial Reports Express]
○ Ruize New Building Material proposes high share conversion and dividend
------
The actual controller of Hainan Ruize New Building Material Co., Ltd. (002596.SZ) proposes a 20-for-10 conversion of capital surplus into shares combined with dividend which should be no less than 10 percent of the company's attributable profit according to its annual report.
[Trading Alarms]
○ Kinwong Electronic and others to conduct IPO on Dec. 26
------
Shenzhen Kinwong Electronic Co., Ltd. (732228) will offer shares at 23.16 yuan per share with an upper limit of 14,000 shares for each applicant. The company is mainly engaged in printed circuit boards and high-end electronic materials. Zhejiang Tiantie Industry Co., Ltd. (300587.SZ) will offer shares at 14.11 yuan per share with an upper limit of 10,000 shares for each applicant. The company is mainly engaged in tracking engineering rubber. Dawn Group (002838.SZ) will offer shares at 15.28 yuan per share with an upper limit of 8,000 shares for each applicant. The company is mainly engaged in high-performance modified plastics and thermoplastic elastomer.
[Weekly Review]
○ A-share market returns to state of narrow ups and downs
------
The A-share market returned a state of narrow ups and downs last week after a remarkable decline in the previous week. Other than few themes, including state-owned enterprises (SOEs) reform, other sectors did not show continuous reform. Few rising stocks barely shored up the sectors. In fact, after insurance funds come under regulation for their acquisition of shares via the secondary market, the market finds no reason to rise. But the good thing is that the big-cap stocks are not high valued and the national team remains in the market and the possibility of continuous decline in index is low.
SSN highlighted various policy factors last week. As the year comes to an end, a series of polices have been introduced. Owing to the shortage of active fund, the market is not passionate in interpreting most of these polices. There is only one week for 2016. It almost becomes a settle thing that the A-share market will close lower this year. Institutions have lost interest to continue fighting as it is hard to find opportunities. However, the A-share market has accumulated a large size of stock capital, including insurance funds, fund, private funds, which hope to seek profit through secondary market acquisition. Their transfer will bring new opportunities next year. SSN will stay on guard as usual to help investors seize investment opportunities.
TOP
○ Beite Technology reports highest growth in Shanghai bourse, stocks whose performance exceed expectation favored by investors
○ Export tariff of nitrogen phosphorus fertilizer export canceled, demand and supply of industry likely to improve
○ Guo Changwei to become new controller of Zhongrun Resources Investment, Guo Xianxing and his son held 10pct. shares in Haida Rubber and Plastic
○ Hainan Strait Shipping and others approved CSRC for reorganization, Ruize New Building Material proposes high share conversion and dividend
[SSN Focus]
○ Beite Technology reports highest growth in Shanghai bourse, stocks whose performance exceed expectation favored by investors
------
The Shanghai Stock Exchange published the disclosure time of 2016 annual reports. The first annual report in the Shanghai bourse will be issued by Shanghai Beite Technology Co., Ltd. (603009.SH) on January 14, 2017, which will be followed by Beijing Dahao Technology Corporation Limited (603025.SH), Guizhou Chitianhua Co., Ltd. (600227.SH), Wuhan Thalys Medical Technology Inc. (603716.SH), Shanxi Antai Group Co., Ltd. (600408.SH), Yunnan Jinggu Forestry Co., Ltd. (600265.SH), Shandong Jiangquan Industry Co., Ltd. (600212.SH), Anxin Trust Co., Ltd. (600816.SH). These companies will disclose their annual reports before next February. In the above companies, the earnings of Anxin Trust in the first three quarters will be 2.3 billion yuan, and it announced that its whole-year performance has improved significantly; Jinggu Forestry and Jiangquan Industry also realized profits in the first three quarters, and expected to turn year on year deficit into profits.
Comment: according to past experience, market usually pay greater attention to the listed companies that disclose their annual reports earlier. Subsequently, stocks whose performance exceed expectation also expected to be favored by the market. Securities companies pointed out in the research report that according to the data of the third quarter, food＆ beverage, forage breeding, chemical pharmacy industries saw better match of valuation and profits. In addition, since the next half year, the prices of chemical products in general surged. Such products will likely to continue to surge in the future. Investment opportunities include PTA, whose supply and demand see constant improvement, polyester filament yarn, and spandex. Demand for fertilizer and pesticide also increased, leading the agrochemical industry to bottom out.
[SSN Selection]
○ Promote "Made in China 2025" conference and the 4th meeting of National Manufacturing Power Construction Leading Group was held on Dec. 23 in Changsha City, Hunan Province.
○ Chinese scientist realized ten photon pairs for the first time and break world record. This achievement could be used large scale of quantum information technology.
○ Nuclear reactor zero power device "Venus II" on Dec. 23 realized initial criticality, signaling China has reached international advanced level as to the R＆D of new generation zero power device of nuclear reactor.
○ Baidu launched 3D map at the smart travel ecology conference held on Dec. 23, and indicated that it will make greater efforts in walking AR navigation, indoor map, 4K map, and trajectory navigation features.
○ Feng Zhenglin, head of the Civil Aviation Administration, recently indicated that the growth of China's air traffic has the ceiling of guarantee capability. China should strive to launch concrete new policies to guide the healthy and orderly development of low-cost airlines.
TOP
[Industry Information]
○ Export tariff of nitrogen phosphorus fertilizer export canceled, demand and supply of industry likely to improve
------
Ministry of Finance disclosed at its official website that China will made partial adjustment to the import and export tariff. The export tariff of nitrogen phosphorus fertilizers will be canceled, and export tariff of the ternary compound fertilizer will be properly reduced. Data shows that the export tariff of urea and diammonium hydrogen phosphate were 80 yuan and 100 yuan per ton in 2016, and the tax rate of the ternary compound fertilizer was 30 percent. After this adjustment, the export tariff of urea and diammonium hydrogen phosphate will be canceled, and the tax rate of the ternary compound fertilizer will be 20 percent.
Comment: currently, the export of nitrogen phosphorus fertilizer accounts for 10 to 15 percent of the total of the industry. The reduction of tariff will improve the competitiveness of China's fertilizer export, and enhance the supply and demand of the industry. Driven by environmental protection examination and price hike, the prices of urea and diammonium hydrogen phosphate continue to increase. The price of urea has improved by nearly 40 percent from the low in August. Securities companies indicated in the research report that several companies will see substantial growth of performance due to price hike, including Yunnan Yuntianhua Co., Ltd. (600096.SH), and Shandong Hualu-Hengsheng Chemical Co., Ltd. (600426.SH), a leading coal head of urea manufacturer.
○ Parking difficulty heightened, construction of facilities expected to accelerate
------
Cheng Zhenggao, head of the Ministry of Housing and Urban-Rural Development (MOHURD) on Dec. 24 says that one of the reasons that cause the parking difficulty is that China has not prepared well for the explosive growth of cars. He says that the shortage of urban parking lots is about 50 percent. According to this estimation, China's parking lots shortage is about 50 million. At the same time, China's private cars increased at about 18 million each year. With the increase of private cars, the contradiction become increasingly heightened. In the next step, China will further open the market, to attract social capitals in construction of parking lots, and increase the development of underground space.
Comments: In recent years, in order to promote the construction of parking lots, the National Development and Reform Commission (NDRC), the Ministry of Housing and Urban-Rural Development and other departments introduced a series of support policies. The construction of parking lots construction is an important area of cooperation in the PPP model. The State Council clearly stated that China encourages social capital to invest in the construction of parking lots and other municipal infrastructure projects. Anhui Honglu Steel Construction (Group) Co., Ltd. (002541.SZ) recently signed a cooperation agreement with Tiancheng Zhiyuan Co., Ltd, and is expected to use the latter's local resources and the cooperation platform with government to carry out steel-structure residential and 3D garage business. Shenzhen Jieshun Science And Technology Industry Co., Ltd. (002609.SZ) forests to grow 20 to 50 percent for the year of 2016 duet to the fast development of its intelligent community and intelligent parking lots business.
TOP
[Announcement Interpretation]
○ Guo Changwei to become new controller of Zhongrun Resources Investment
------
Nanwu Bei'an Asset Management Co., Ltd., the controlling shareholder of Zhongrun Resources Investment Corporation (000506.SZ), plans to transfer its 233 million shares it holds in the listed company to Ningbo Ransheng Shengyuan Investment Management Partnership at 9.69 yuan per share for a total of about 2,258 million yuan.
After the transfer, the actual control of Zhongrun Resources Investment will change to Guo Changwei. In the third quarter of this year, Guo Changwei bought shares in another listed company Kee Ever Bright Decorative Technology Co., Ltd. (002464.SZ). According to announcement, Guo's companies are mainly involved in investment, real estate and property and health.
○ Guo Xianxing and his son held 10pct. shares in Haida Rubber and Plastic
------
Jiangyin Haida Rubber and Plastic Co., Ltd. (300320.SZ) announces that Guo Xianxing and his son Guo Jianyong increased shareholding by a total of 14,667,400 shares, accounting for 5 percent of the company's capital share, at 17.54 yuan to 20.13 yuan per share from Nov. 22 to Dec. 22. So far, Guo Xianxing and his son holds a total of 29,334,900 shares in the company, accounting for 10 percent of the company's capital share.
Guo Xianxing and his son said that they increased shareholding in the company because they are optimistic about the A-share market and bullish on the company's prospect. Guo Xianxing and his son are the actual controller of the listed company Yotrio Group Co., Ltd. (002489.SZ).
TOP
○ Hainan Strait Shipping and others approved CSRC for reorganization
------
Hainan Strait Shipping Co., Ltd. (002320.SZ) and Besttone Holding Co., Ltd. (600640.SH) obtained conditional approval from the China Securities Regulatory Commission (CSRC) for their reorganization. Yinyi Real Estate Co., Ltd. (000981.SZ) obtained unconditional approval from the CSRC for its reorganization.
○ H＆T Intelligent Control introduces strategic investor
------
Liu Jianwei, the actual controller of Shenzhen H＆T Intelligent Control Co., Ltd. (002402.SZ), transferred 21.2 million shares to Shenzhen Qianhai Huxing Asset Management Co., Ltd. via block trading on Dec. 23, accounting for 2.55 percent of the company's capital share, aiming to take use of the latter's quality resources for industry integration so as to promote fast development of the company's main business.
[Financial Reports Express]
○ Ruize New Building Material proposes high share conversion and dividend
------
The actual controller of Hainan Ruize New Building Material Co., Ltd. (002596.SZ) proposes a 20-for-10 conversion of capital surplus into shares combined with dividend which should be no less than 10 percent of the company's attributable profit according to its annual report.
[Trading Alarms]
○ Kinwong Electronic and others to conduct IPO on Dec. 26
------
Shenzhen Kinwong Electronic Co., Ltd. (732228) will offer shares at 23.16 yuan per share with an upper limit of 14,000 shares for each applicant. The company is mainly engaged in printed circuit boards and high-end electronic materials. Zhejiang Tiantie Industry Co., Ltd. (300587.SZ) will offer shares at 14.11 yuan per share with an upper limit of 10,000 shares for each applicant. The company is mainly engaged in tracking engineering rubber. Dawn Group (002838.SZ) will offer shares at 15.28 yuan per share with an upper limit of 8,000 shares for each applicant. The company is mainly engaged in high-performance modified plastics and thermoplastic elastomer.
[Weekly Review]
○ A-share market returns to state of narrow ups and downs
------
The A-share market returned a state of narrow ups and downs last week after a remarkable decline in the previous week. Other than few themes, including state-owned enterprises (SOEs) reform, other sectors did not show continuous reform. Few rising stocks barely shored up the sectors. In fact, after insurance funds come under regulation for their acquisition of shares via the secondary market, the market finds no reason to rise. But the good thing is that the big-cap stocks are not high valued and the national team remains in the market and the possibility of continuous decline in index is low.
SSN highlighted various policy factors last week. As the year comes to an end, a series of polices have been introduced. Owing to the shortage of active fund, the market is not passionate in interpreting most of these polices. There is only one week for 2016. It almost becomes a settle thing that the A-share market will close lower this year. Institutions have lost interest to continue fighting as it is hard to find opportunities. However, the A-share market has accumulated a large size of stock capital, including insurance funds, fund, private funds, which hope to seek profit through secondary market acquisition. Their transfer will bring new opportunities next year. SSN will stay on guard as usual to help investors seize investment opportunities.
TOP
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