[Today's Guide]
○Construction of high-speed bandwidth network to accelerate, optical communication to embrace rapid development
○13th five-year development plan for tourism industry rolled out, construction of outstanding tourist spots to advance
○ Positive signals frequently show for food ＆ beverage sector, industrial boom likely to continue
○ Shares of Wanfang Aluminum Manufacturing and Welltech Automation bought to placarded threshold of 5 pct, Chemical Fibre and NHU Company to conduct private placement
[SSN Focus]
○Construction of high bandwidth network to accelerate, optical communication to embrace rapid development
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The National Industrialization and Informatization Work Conference was held on Dec. 26 in Beijing. It is proposed on the meeting to move faster in advancing the transition of the information communication industry, and consolidate the basis for building China into a network powerhouse in 2017. It is also proposed to accelerate the construction of high-speed broadband network, improve the service ability of websites, and expand the coverage of 4G network in rural and remote areas. It is proposed that in 2017, the capability of urban households' residential-access bandwidth must reach 100Mbps, 1G supper bandwidth service are provided in some cities, over 80 percent of administrative villages are connected with fiber optic, the Internet bandwidth is expanded to 1,000G, and three new Internet backbone direct connection points are added.
Comment: Institutions believe that driven by access, metro region and backbone market, the telecom market might achieve stable growth in next few years. The explosive growth of data flow will boost the upgrading and expansion of optical modules in the whole optical network. As predicted by Lightcounting, the optical devices market of cloud data center expects a compound growth rate of 20 percent in next five years. InnoLight Technology (Suzhou) Ltd., to be acquired by Shandong Zhongji Electrical Equipment Co., Ltd. (300308.SZ), is involved in the production of high-end optical module products; Accelink Technologies Co., Ltd. (002281.SZ) is a leading domestic company in optical module products.
[SSN Selection]
○The China Securities Regulatory Commission (CSRC) and the National Development and Reform Commission (NDRC) jointly issued a circular to advance the asset securitization of Public-Private-Partnership (PPP) projects, which is of great significance in improving the asset liquidity of PPP projects.
○A total fixed-asset investment of 1.8 trillion yuan is planned for highway and waterway in 2017, advancing the reforms in highway management system and market-oriented maintenance.
○The Ministry of Housing and Urban-Rural Development (MOHURD) vows to start and complete the construction of over 500 km rail transit, respectively, and start the construction of over 2,000 km underground comprehensive pipe gallery in 2017.
○Shang Fulin, president of the China Banking Regulatory Commission (CBRC), proposed on the annual meeting of the trust industry on Dec. 26 to reverse the industrial trend of heading from real economy towards fictitious economy.
○Sealand Securities Co., Ltd. (000750.SZ) announced that it has signed relevant agreements with seven institutions and it will strive to enter into agreement with other relevant parties soon.
TOP
[Industry Information]
○13th five-year development plan for tourism industry rolled out, construction of outstanding tourist spots to advance
------
The State Council recently rolled out the 13th five-year development plan for the tourism industry. It is proposed to reach annual increases in number of tourists, tourism revenue, and direct tourism investment of 10 percent, 11 percent, and 14 percent, respectively. By 2020, the total tourism market reaches 6.7 billion person-times, the investment in tourism aggregates 2 trillion yuan and the total revenue of the tourism industry records 7 trillion yuan. It is also proposed in the plan to advance the construction of outstanding tourist spots, accelerate the development of leisure tourism products, make great efforts in developing maritime tourism, ice-snow tourism and etc.
Comment: It is proposed in the plan that in the future, consumption on tourism will be more popular and the consumption needs of high-quality tourism will increase in China. Relevant companies holding special tourism resources and providing mid- to high-end tourism experience might attract more tourists. Dalian Sunasia Tourism Holding Co., Ltd. (600593.SH) recently announced that it signed contracts for several cooperation projects, covering hot tourism destinations in Yangtze River Delta region, Xiamen city, Sanya city and etc. and improving its maritime tourism product lines; Bohai Ferry Co., Ltd. (603167.SH) started its cruise ship business in the second half of 2014; Changbai Mountain Tourism Co., Ltd. (603099.SH) is the only passenger transport operator in Changbai Mountain.
TOP
○ Positive signals frequently show for food ＆ beverage sector, industrial boom likely to continue
------
Based on the latest announcement of Kuaijishan Shaoxing Wine Co., Ltd. (601579.SH), it will raise the price of productions under Chunzheng Wunian series by 6 percent from Jan. 1, 2017; it will do so by 11 percent for its aging wines from next Jan. 25. Fenjiu Group held a dealers' meeting on Dec. 26, according to jiuyejia.com. Tan Zhongbao, general manager of Fenjiu Group and also chairman of Shanxi Xinghuacun Fen Wine Factory Co., Ltd. (600809.SH), indicated that it plans to take two years from 2017 to make its benchmarking product "Qinghua 30" back to brand value regarding to market performance and also price.
Comment: Recently, Kweichow Moutai Co., Ltd. (600519.SH), Wuliangye Yibin Co., Ltd. (000858.SZ) and Luzhou Laojiao Co., Ltd. (000568.SZ) revealed their operational plans for 2017, showing positive signals of controlling production, supporting the price, optimizing product structure, and detailing channel system in the industry. Stepping in 2017, food ＆ beverage industry will still continue the boom with stronger recovery, which may shows in performance report, research report of China Investment Securities pointed out. Along with speeding-up consumption upgrading and reinforcing inflation expectation, this industry is very likely to accelerate the performance and change the valuation, with its investment value obviously showed.
TOP
[Announcement Interpretation]
○ Shares of Wanfang Aluminum Manufacturing and Welltech Automation bought to placarded threshold of 5 pct
------
Jiayi Investment Co., Ltd. has carried out net buying of around 59.509 million shares of Jiaozuo Wanfang Aluminum Manufacturing Co., Ltd. (000612.SZ) since Nov. 8 to Dec. 26, accounting for 5 percent equities. Jiayi Investment indicated that it is optimistic on the listed company's future development, and plans to gain investment yields from added value of equities; meanwhile, it may increase the shareholdings in next 12 months. Jiayi Investment now still holds 19.47 percent equities of CRED Holding Co., Ltd. (600890.SH).
7,177,800 shares of Shanghai Welltech Automation Co., Ltd. (002058.SZ) have been bought by Jinan Auto Accessories Manufacturing Co., Ltd., taking up 5 percent equities. The buyer did so based on its optimistic attitude towards the listed company's development, and it may continue to increase the shareholdings in next 12 months.
○ Chemical Fibre to raise RMB1.5 bln for its main business
------
Nanjing Chemical Fibre Co., Ltd. (600889.SH) proposes to issue no more than 132 million shares with 11.38 yuan per share as the bottom price to its controlling shareholder Nanjing New Industrial Investment Group Co., Ltd. and others to raise 1.5 billion yuan for constructing differentiation rayon staple project with annual production of 160,000 tons. Especially, New Industrial Investment Group plans to carry out subscription with no less than 200 million yuan in cash. The said project is expected to reach annual profit of 180 million yuan after tax.
○ NHU Company to raise RMB4.9 bln through private placement to improve industrial chain
------
Zhejiang NHU Company Ltd. (002001.SZ) plans to issue no more than 269 million shares at a price no less than 18.19 yuan per share to raise no more than 4.9 billion yuan for methionine project with annual production of 250,000 tons. It indicated that this project can realize local mehionine supply for China, if it reaches the designed capacity.
○ Senior management increased shareholdings in Wuchangyu and others
------
Long-term Investment, shareholder of Hubei Wuchangyu Co., Ltd. (600275.SH), increased 10.88 million shareholdings from Sept. 26 to Dec. 26, accounting for 2.14 percent equities, and it holds 7.14 percent equities after transaction. Controlling shareholder of Shenzhen Grandland Group Co., Ltd. (002482.SZ) on Dec. 26 increased 6.32 million shareholdings in the listed company. Hu Yangzhong, general manager of Hangzhou Hikvision Digital Technology Co., Ltd. (002415.SZ) on Dec. 23 continued to increase 11.53 million shareholdings. Actual controller of Qingdao Hengshun Zhongsheng Group Co., Ltd. (300208.SZ) on Dec. 23 and 26 increased 2.94 million shareholdings. Controlling shareholder of Suzhou New District Hi-Tech Industrial Co., Ltd. (600736.SH) on Dec. 26 increased 1.88 million shareholdings.
○ Hong Kong subsidiary of Dongguan Kingsun Optoelectronic Co., Ltd. (002638.SZ) proposes to acquire the equity of NIT Education Group in cash.
[Trading Alarms]
○ IPOs of Peacebird Fashion, Huatong Meat Products and Sito Bio-technology on Dec. 27
------
Ningbo Peacebird Fashion Co., Ltd. (603877.SH) is mainly engaged in multi-brand fashionable clothes, with offering price of 21.30 yuan per share and upper subscription limit of 16,000 shares; 6.55 yuan per share and 17,500 shares for Zhejiang Huatong Meat Products Co., Ltd. (002840.SZ) mainly engaged in livestock slaughtering and meat processing; 40.29 yuan per share and 9,500 shares for Shandong Sito Bio-technology Co., Ltd. (300583.SZ) mainly engaged in raw materials for steroid medicine.
TOP
○Construction of high-speed bandwidth network to accelerate, optical communication to embrace rapid development
○13th five-year development plan for tourism industry rolled out, construction of outstanding tourist spots to advance
○ Positive signals frequently show for food ＆ beverage sector, industrial boom likely to continue
○ Shares of Wanfang Aluminum Manufacturing and Welltech Automation bought to placarded threshold of 5 pct, Chemical Fibre and NHU Company to conduct private placement
[SSN Focus]
○Construction of high bandwidth network to accelerate, optical communication to embrace rapid development
------
The National Industrialization and Informatization Work Conference was held on Dec. 26 in Beijing. It is proposed on the meeting to move faster in advancing the transition of the information communication industry, and consolidate the basis for building China into a network powerhouse in 2017. It is also proposed to accelerate the construction of high-speed broadband network, improve the service ability of websites, and expand the coverage of 4G network in rural and remote areas. It is proposed that in 2017, the capability of urban households' residential-access bandwidth must reach 100Mbps, 1G supper bandwidth service are provided in some cities, over 80 percent of administrative villages are connected with fiber optic, the Internet bandwidth is expanded to 1,000G, and three new Internet backbone direct connection points are added.
Comment: Institutions believe that driven by access, metro region and backbone market, the telecom market might achieve stable growth in next few years. The explosive growth of data flow will boost the upgrading and expansion of optical modules in the whole optical network. As predicted by Lightcounting, the optical devices market of cloud data center expects a compound growth rate of 20 percent in next five years. InnoLight Technology (Suzhou) Ltd., to be acquired by Shandong Zhongji Electrical Equipment Co., Ltd. (300308.SZ), is involved in the production of high-end optical module products; Accelink Technologies Co., Ltd. (002281.SZ) is a leading domestic company in optical module products.
[SSN Selection]
○The China Securities Regulatory Commission (CSRC) and the National Development and Reform Commission (NDRC) jointly issued a circular to advance the asset securitization of Public-Private-Partnership (PPP) projects, which is of great significance in improving the asset liquidity of PPP projects.
○A total fixed-asset investment of 1.8 trillion yuan is planned for highway and waterway in 2017, advancing the reforms in highway management system and market-oriented maintenance.
○The Ministry of Housing and Urban-Rural Development (MOHURD) vows to start and complete the construction of over 500 km rail transit, respectively, and start the construction of over 2,000 km underground comprehensive pipe gallery in 2017.
○Shang Fulin, president of the China Banking Regulatory Commission (CBRC), proposed on the annual meeting of the trust industry on Dec. 26 to reverse the industrial trend of heading from real economy towards fictitious economy.
○Sealand Securities Co., Ltd. (000750.SZ) announced that it has signed relevant agreements with seven institutions and it will strive to enter into agreement with other relevant parties soon.
TOP
[Industry Information]
○13th five-year development plan for tourism industry rolled out, construction of outstanding tourist spots to advance
------
The State Council recently rolled out the 13th five-year development plan for the tourism industry. It is proposed to reach annual increases in number of tourists, tourism revenue, and direct tourism investment of 10 percent, 11 percent, and 14 percent, respectively. By 2020, the total tourism market reaches 6.7 billion person-times, the investment in tourism aggregates 2 trillion yuan and the total revenue of the tourism industry records 7 trillion yuan. It is also proposed in the plan to advance the construction of outstanding tourist spots, accelerate the development of leisure tourism products, make great efforts in developing maritime tourism, ice-snow tourism and etc.
Comment: It is proposed in the plan that in the future, consumption on tourism will be more popular and the consumption needs of high-quality tourism will increase in China. Relevant companies holding special tourism resources and providing mid- to high-end tourism experience might attract more tourists. Dalian Sunasia Tourism Holding Co., Ltd. (600593.SH) recently announced that it signed contracts for several cooperation projects, covering hot tourism destinations in Yangtze River Delta region, Xiamen city, Sanya city and etc. and improving its maritime tourism product lines; Bohai Ferry Co., Ltd. (603167.SH) started its cruise ship business in the second half of 2014; Changbai Mountain Tourism Co., Ltd. (603099.SH) is the only passenger transport operator in Changbai Mountain.
TOP
○ Positive signals frequently show for food ＆ beverage sector, industrial boom likely to continue
------
Based on the latest announcement of Kuaijishan Shaoxing Wine Co., Ltd. (601579.SH), it will raise the price of productions under Chunzheng Wunian series by 6 percent from Jan. 1, 2017; it will do so by 11 percent for its aging wines from next Jan. 25. Fenjiu Group held a dealers' meeting on Dec. 26, according to jiuyejia.com. Tan Zhongbao, general manager of Fenjiu Group and also chairman of Shanxi Xinghuacun Fen Wine Factory Co., Ltd. (600809.SH), indicated that it plans to take two years from 2017 to make its benchmarking product "Qinghua 30" back to brand value regarding to market performance and also price.
Comment: Recently, Kweichow Moutai Co., Ltd. (600519.SH), Wuliangye Yibin Co., Ltd. (000858.SZ) and Luzhou Laojiao Co., Ltd. (000568.SZ) revealed their operational plans for 2017, showing positive signals of controlling production, supporting the price, optimizing product structure, and detailing channel system in the industry. Stepping in 2017, food ＆ beverage industry will still continue the boom with stronger recovery, which may shows in performance report, research report of China Investment Securities pointed out. Along with speeding-up consumption upgrading and reinforcing inflation expectation, this industry is very likely to accelerate the performance and change the valuation, with its investment value obviously showed.
TOP
[Announcement Interpretation]
○ Shares of Wanfang Aluminum Manufacturing and Welltech Automation bought to placarded threshold of 5 pct
------
Jiayi Investment Co., Ltd. has carried out net buying of around 59.509 million shares of Jiaozuo Wanfang Aluminum Manufacturing Co., Ltd. (000612.SZ) since Nov. 8 to Dec. 26, accounting for 5 percent equities. Jiayi Investment indicated that it is optimistic on the listed company's future development, and plans to gain investment yields from added value of equities; meanwhile, it may increase the shareholdings in next 12 months. Jiayi Investment now still holds 19.47 percent equities of CRED Holding Co., Ltd. (600890.SH).
7,177,800 shares of Shanghai Welltech Automation Co., Ltd. (002058.SZ) have been bought by Jinan Auto Accessories Manufacturing Co., Ltd., taking up 5 percent equities. The buyer did so based on its optimistic attitude towards the listed company's development, and it may continue to increase the shareholdings in next 12 months.
○ Chemical Fibre to raise RMB1.5 bln for its main business
------
Nanjing Chemical Fibre Co., Ltd. (600889.SH) proposes to issue no more than 132 million shares with 11.38 yuan per share as the bottom price to its controlling shareholder Nanjing New Industrial Investment Group Co., Ltd. and others to raise 1.5 billion yuan for constructing differentiation rayon staple project with annual production of 160,000 tons. Especially, New Industrial Investment Group plans to carry out subscription with no less than 200 million yuan in cash. The said project is expected to reach annual profit of 180 million yuan after tax.
○ NHU Company to raise RMB4.9 bln through private placement to improve industrial chain
------
Zhejiang NHU Company Ltd. (002001.SZ) plans to issue no more than 269 million shares at a price no less than 18.19 yuan per share to raise no more than 4.9 billion yuan for methionine project with annual production of 250,000 tons. It indicated that this project can realize local mehionine supply for China, if it reaches the designed capacity.
○ Senior management increased shareholdings in Wuchangyu and others
------
Long-term Investment, shareholder of Hubei Wuchangyu Co., Ltd. (600275.SH), increased 10.88 million shareholdings from Sept. 26 to Dec. 26, accounting for 2.14 percent equities, and it holds 7.14 percent equities after transaction. Controlling shareholder of Shenzhen Grandland Group Co., Ltd. (002482.SZ) on Dec. 26 increased 6.32 million shareholdings in the listed company. Hu Yangzhong, general manager of Hangzhou Hikvision Digital Technology Co., Ltd. (002415.SZ) on Dec. 23 continued to increase 11.53 million shareholdings. Actual controller of Qingdao Hengshun Zhongsheng Group Co., Ltd. (300208.SZ) on Dec. 23 and 26 increased 2.94 million shareholdings. Controlling shareholder of Suzhou New District Hi-Tech Industrial Co., Ltd. (600736.SH) on Dec. 26 increased 1.88 million shareholdings.
○ Hong Kong subsidiary of Dongguan Kingsun Optoelectronic Co., Ltd. (002638.SZ) proposes to acquire the equity of NIT Education Group in cash.
[Trading Alarms]
○ IPOs of Peacebird Fashion, Huatong Meat Products and Sito Bio-technology on Dec. 27
------
Ningbo Peacebird Fashion Co., Ltd. (603877.SH) is mainly engaged in multi-brand fashionable clothes, with offering price of 21.30 yuan per share and upper subscription limit of 16,000 shares; 6.55 yuan per share and 17,500 shares for Zhejiang Huatong Meat Products Co., Ltd. (002840.SZ) mainly engaged in livestock slaughtering and meat processing; 40.29 yuan per share and 9,500 shares for Shandong Sito Bio-technology Co., Ltd. (300583.SZ) mainly engaged in raw materials for steroid medicine.
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