[Today' Guide]
○ Guidance on new materials development plan to release, industry to maintain high growth
○ 13th Five-year Plan on national IT application released, e-government and electronic evidence to see opportunities
○ China to speed up in space development, commercial space market to expand
○ Zonfa Trinity Technology and Hengda Hi-Tech bought through secondary acquisitions to 5 pct threshold, North Huajin Chemical Industries and Zhongzhu Healthcare Holding forecast growth
[SSN Focus]
○ Guidance on new materials development plan to release, industry to maintain high growth
------
SSN Dec. 27 learnt that the Guidance on the Plan on the Development of New Materials drafted by the Ministry of Industry and Information Technology (MIIT) will be released soon. It proposes that special functional inorganic non-metallic materials, advanced composite materials and special functional metallic materials will enjoy priority in the new material industry. It also proposes to speed up in the research and development of key technologies in advanced smelting, consolidation forming, vapor deposition and other new materials, strengthening basic studies and the establishment of systems to make breakthroughs in industrialization. It will actively develop special new materials for military and civil uses, speed up in the two-way transformation of technologies and promote the civil-military integrated development in new materials.
Comment: China International Capital Corporation Limited (CICC) pointed out that driven by policies, technical development and the surging demand in the downstream, it is expected that new material market will reach 5 trillion yuan in 2020 with a compound average growth rate of 20 percent during the 13th Five-year Plan period. The application of carbon fiber will expand and the industry will see huge growth potential. The 3D printing is on the eve of industrialization. It is expected to be widely used on space, medical devices, automobile and other industries. The market-based industrialization and scaled application of graphene will be formed and will be mainly used in electronic devices, lithium battery materials and anticorrosive paintings.
[SSN Selection]
○ The recovery of profits made by industrial enterprises above the designated size sped up in November. A year-on-year growth of 14.5 percent is the second highest level in the year.
○ The investor stock-bank transaction saw a net transfer-in of 65.3 billion yuan last week while the number of investors in A-share transactions dropped to 14.19 million.
○ The State Administration of Taxation indicated that the replacement of business tax with value-added tax reduced the tax with 469.9 billion yuan in the first 11 months, which will further expand next year.
○ China will conduct the establishment of the electronic traceability system on table salt and the enterprise credit system to ensure the safety and stability of the table salt market.
○ The overall plan on building Shaanxi free-trade zone (FTZ) has been submitted to the State Council for approval. It will conduct innovations in culture and tourism.
TOP
[Industry Information]
○ 13th Five-year Plan on national IT application released, e-government and electronic evidence to see opportunities
------
The State Council issued the plan on national IT application during the 13th Five-year Plan period, which proposes targets in information technology and industries, information infrastructure, information economy and all indicators on information services. Among all indicators, the online handling of basic public services will be improved from 20 percent in 2015 to 80 percent in 2020 while the e-lawsuit will account for more than 15 percent compared with the currently less than 1 percent.
Comment: Based on the targets proposed in the plan, the two indicators will see huge development during the 13th Five-year Plan period, which will bring huge market opportunities to e-government and electronic evidence. Among listed companies, Fujian Rongji Software Co., Ltd. (002474.SZ) mainly provides software development and system integration services in the e-government and information security industries. It is quite competitive in Beijing, Fujian, Zhejiang, Henan and Shanghai. Based on the interim report of Xiamen Meiya Pico Information Co., Ltd. (300188.SZ), the company recorded high growth in electronic evidence equipment and big data platforms, the verification of electronic evidence and relevant services on information security.
TOP
○ China to speed up in space development, commercial space market to expand
------
The State Council Information Office released the White Paper on China's Space Activities in 2016 on Dec. 27, proposing that China will speed up in building a space power. In the next five years, work will go on in the basic nuts and bolts of the space industry, with extensive research breaking new ground in essential technology. It will continue to advance manned spaceflight, lunar exploration and other significant projects. Wu Yanhua, deputy chief of the National Space Administration, pointed out that the white paper introduced relevant policies on commercial spaceflight and encourage private capitals, social capitals and diversified capitals, including overseas capitals.
Comment：Dongxing Securities indicated in the research report that as China's policy barrier gradually removed and the business mode becomes increasingly clear, the number of private satellite launching is expected to continue to grow. The scale of commercial aerospace markets will keep expanding, and is expected to contribute to the new growth point of China's space industry. In the long run, prospect of the satellite launching and application area is bright. Relevant companies include China Aerospace Times Electronics Co., Ltd. (600879.SH) and China Zhenhua (Group) Science ＆ Technology Co., Ltd. (000733.SZ).
TOP
[Announcement Interpretation]
○ Zonfa Trinity Technology bought by Tsinghua Unigroup to 5 pct threshold through secondary acquisition for three times
------
Tsinghua Unigroup Co., Ltd. and its parties acting in concert from August 1 to Dec. 26 bought 7,926,300 shares of TongLing Zonfa Trinity Technology Co., Ltd. (600520.SH) through secondary market acquisition, accounting for 5 percent of the total share capital of the listed company. The average price ranges from 16.87 yuan to 23.5 yuan per share. Up till now, Tsinghua Unigroup and its parties acting in concert in total hold 15 percent of the shares of the company. Tsinghua Unigroup indicated that it will likely to continue to increase shareholding of the company in the next 12 months. Tsinghua Unigroup currently control three listed companies, including Unisplendour Corporation Limited (000938.SZ), Xiamen Unigroup Xue Co., Ltd. (000526.SZ) and Unigroup Guoxin Co., Ltd. (002049.SZ).
○ Shangyuan Capital bought Hengda Hi-Tech to 5 pct threshold through secondary market acquisition
------
Shangyuan Capital on Dec. 27 increased holding 5,521,800 shares of Jiangxi Hengda Hi-Tech Co., Ltd. (002591.SZ) through secondary market acquisition, accounting for 2.12 percent of the total share capital of the company. Its total shareholding in the company increased to 13.05 million shares, representing 5.01 percent of the total share capital.
○ Largest shareholder and ESOP of Hongli Zhihui to increase shareholding
------
Hongli Zhihui Group Co., Ltd. (300219.SZ) proposes to launch an employee stock ownership plan (ESOP), to hold no more than 10 percent equities of the company. At the same time, Li Guoping, the largest shareholder and CEO of Hongli Zhihui committed that he will increase no less than 30 million yuan worth of shares of the company in the six months started from Dec. 30. Hongli Zhihui declined by more than 30 percent in the seven trading days after resumption of trading.
○ Largest shareholder of Changelight changed
------
Wang Weiyong, shareholder of Xiamen Changelight Co., Ltd. (300102.SZ) on Dec. 26 reduced holding 4,509,950 shares of the company through block trade, accounting for 0.64 percent of the total share capital of the company. The shareholding of Wang declined to 15.28 percent. Shenzhen Hejun Zhengde Asset Management Company Limited and its party acting in concert Suzhou Hezheng Equity Investment Fund Management Corporation (Limited Partnership) in total hold 110 million shares of the company, accounting for 15.61 percent of the total share capital of the company, becoming the largest shareholder. There's no controlling shareholder or actual controller for the company.
○ Several companies saw increase of shareholding by actual controller or senior management
------
Actual controller of Cnlight Co., Ltd. (002076.SZ) on Dec. 23 and 26 in total increased holding 2.12 million shares of the company. General Manager of Hangzhou Hikvision Digital Technology Co., Ltd. (002415.SZ) on Dec. 27 continue to increase holding 15.5 million shares of the company. Director of Shanghai 2345 Network Holding Group Co., Ltd. (002195.SZ) on Dec. 26 and 27 increased holding 760,000 shares of the company. Controlling shareholder of Nanjing Inform Storage Equipment (group) Co., Ltd. (603066.SH) on Dec. 27 increased holding 550,000 shares of the company. Largest shareholder of Zhongshan Public Utilities Group Co., Ltd. (000685.SZ) on Dec. 26 increased holding 15.34 million shares of the company.
[Financial Reports Express]
○ North Huajin Chemical Industries and Zhongzhu Healthcare Holding forecast growth
------
North Huajin Chemical Industries Co., Ltd. (000059.SZ) forecasts 448 percent to 508 percent growth in its annual report, primarily due to the sharp decline of production cost. Zhongzhu Healthcare Holding Co., Ltd. (600568.SH) forecasts250 percent to 330 percent growth in its annual report, primarily due to it has completed the M＆A of integrated health care and recorded substantial earnings growth.
○ Friendship＆ Apollo Commercial proposes high share conversion and dividend
------
Hunan Friendship＆ Apollo Commercial Co., Ltd. (002277.SZ) revised upwardly its annual earnings. The controlling shareholder proposes 10-for-10 conversion of capital surplus in to shares combined with 1 yuan dividend for each 10 shares, and will continue to increase shareholding. Shenzhen Longood Intelligent Electric Co., Ltd. (300543.SZ) forecasts 15 percent to 29 percent growth in its annual report, and its actual controller proposes 10-for-10 conversion of capital surplus into shares with 6.5 yuan dividend for each 10 shares.
[Trading Alarm]
○ Three new shares offer for IPO on Dec. 28
------
Anhui Province Natural Gas Development Co., Ltd. (732689.SZ) will offer for subscription at 7.87 yuan per share. The upper limit for each applicant is 33,000 shares. Ningbo Tianlong Electronics Co., Ltd. (732266.SZ) will offer for subscription at 14.63 yuan per share. The upper limit for each applicant is 10,000 yuan. The company is primarily engaged in precision injection products. Wenzhou Wanlima Leather Co., Ltd. (300591.SZ) will offer for subscription at 3.07 yuan per share. The upper limit for each applicant is 24,000 shares. The company is primarily engaged in leather products.
TOP
○ Guidance on new materials development plan to release, industry to maintain high growth
○ 13th Five-year Plan on national IT application released, e-government and electronic evidence to see opportunities
○ China to speed up in space development, commercial space market to expand
○ Zonfa Trinity Technology and Hengda Hi-Tech bought through secondary acquisitions to 5 pct threshold, North Huajin Chemical Industries and Zhongzhu Healthcare Holding forecast growth
[SSN Focus]
○ Guidance on new materials development plan to release, industry to maintain high growth
------
SSN Dec. 27 learnt that the Guidance on the Plan on the Development of New Materials drafted by the Ministry of Industry and Information Technology (MIIT) will be released soon. It proposes that special functional inorganic non-metallic materials, advanced composite materials and special functional metallic materials will enjoy priority in the new material industry. It also proposes to speed up in the research and development of key technologies in advanced smelting, consolidation forming, vapor deposition and other new materials, strengthening basic studies and the establishment of systems to make breakthroughs in industrialization. It will actively develop special new materials for military and civil uses, speed up in the two-way transformation of technologies and promote the civil-military integrated development in new materials.
Comment: China International Capital Corporation Limited (CICC) pointed out that driven by policies, technical development and the surging demand in the downstream, it is expected that new material market will reach 5 trillion yuan in 2020 with a compound average growth rate of 20 percent during the 13th Five-year Plan period. The application of carbon fiber will expand and the industry will see huge growth potential. The 3D printing is on the eve of industrialization. It is expected to be widely used on space, medical devices, automobile and other industries. The market-based industrialization and scaled application of graphene will be formed and will be mainly used in electronic devices, lithium battery materials and anticorrosive paintings.
[SSN Selection]
○ The recovery of profits made by industrial enterprises above the designated size sped up in November. A year-on-year growth of 14.5 percent is the second highest level in the year.
○ The investor stock-bank transaction saw a net transfer-in of 65.3 billion yuan last week while the number of investors in A-share transactions dropped to 14.19 million.
○ The State Administration of Taxation indicated that the replacement of business tax with value-added tax reduced the tax with 469.9 billion yuan in the first 11 months, which will further expand next year.
○ China will conduct the establishment of the electronic traceability system on table salt and the enterprise credit system to ensure the safety and stability of the table salt market.
○ The overall plan on building Shaanxi free-trade zone (FTZ) has been submitted to the State Council for approval. It will conduct innovations in culture and tourism.
TOP
[Industry Information]
○ 13th Five-year Plan on national IT application released, e-government and electronic evidence to see opportunities
------
The State Council issued the plan on national IT application during the 13th Five-year Plan period, which proposes targets in information technology and industries, information infrastructure, information economy and all indicators on information services. Among all indicators, the online handling of basic public services will be improved from 20 percent in 2015 to 80 percent in 2020 while the e-lawsuit will account for more than 15 percent compared with the currently less than 1 percent.
Comment: Based on the targets proposed in the plan, the two indicators will see huge development during the 13th Five-year Plan period, which will bring huge market opportunities to e-government and electronic evidence. Among listed companies, Fujian Rongji Software Co., Ltd. (002474.SZ) mainly provides software development and system integration services in the e-government and information security industries. It is quite competitive in Beijing, Fujian, Zhejiang, Henan and Shanghai. Based on the interim report of Xiamen Meiya Pico Information Co., Ltd. (300188.SZ), the company recorded high growth in electronic evidence equipment and big data platforms, the verification of electronic evidence and relevant services on information security.
TOP
○ China to speed up in space development, commercial space market to expand
------
The State Council Information Office released the White Paper on China's Space Activities in 2016 on Dec. 27, proposing that China will speed up in building a space power. In the next five years, work will go on in the basic nuts and bolts of the space industry, with extensive research breaking new ground in essential technology. It will continue to advance manned spaceflight, lunar exploration and other significant projects. Wu Yanhua, deputy chief of the National Space Administration, pointed out that the white paper introduced relevant policies on commercial spaceflight and encourage private capitals, social capitals and diversified capitals, including overseas capitals.
Comment：Dongxing Securities indicated in the research report that as China's policy barrier gradually removed and the business mode becomes increasingly clear, the number of private satellite launching is expected to continue to grow. The scale of commercial aerospace markets will keep expanding, and is expected to contribute to the new growth point of China's space industry. In the long run, prospect of the satellite launching and application area is bright. Relevant companies include China Aerospace Times Electronics Co., Ltd. (600879.SH) and China Zhenhua (Group) Science ＆ Technology Co., Ltd. (000733.SZ).
TOP
[Announcement Interpretation]
○ Zonfa Trinity Technology bought by Tsinghua Unigroup to 5 pct threshold through secondary acquisition for three times
------
Tsinghua Unigroup Co., Ltd. and its parties acting in concert from August 1 to Dec. 26 bought 7,926,300 shares of TongLing Zonfa Trinity Technology Co., Ltd. (600520.SH) through secondary market acquisition, accounting for 5 percent of the total share capital of the listed company. The average price ranges from 16.87 yuan to 23.5 yuan per share. Up till now, Tsinghua Unigroup and its parties acting in concert in total hold 15 percent of the shares of the company. Tsinghua Unigroup indicated that it will likely to continue to increase shareholding of the company in the next 12 months. Tsinghua Unigroup currently control three listed companies, including Unisplendour Corporation Limited (000938.SZ), Xiamen Unigroup Xue Co., Ltd. (000526.SZ) and Unigroup Guoxin Co., Ltd. (002049.SZ).
○ Shangyuan Capital bought Hengda Hi-Tech to 5 pct threshold through secondary market acquisition
------
Shangyuan Capital on Dec. 27 increased holding 5,521,800 shares of Jiangxi Hengda Hi-Tech Co., Ltd. (002591.SZ) through secondary market acquisition, accounting for 2.12 percent of the total share capital of the company. Its total shareholding in the company increased to 13.05 million shares, representing 5.01 percent of the total share capital.
○ Largest shareholder and ESOP of Hongli Zhihui to increase shareholding
------
Hongli Zhihui Group Co., Ltd. (300219.SZ) proposes to launch an employee stock ownership plan (ESOP), to hold no more than 10 percent equities of the company. At the same time, Li Guoping, the largest shareholder and CEO of Hongli Zhihui committed that he will increase no less than 30 million yuan worth of shares of the company in the six months started from Dec. 30. Hongli Zhihui declined by more than 30 percent in the seven trading days after resumption of trading.
○ Largest shareholder of Changelight changed
------
Wang Weiyong, shareholder of Xiamen Changelight Co., Ltd. (300102.SZ) on Dec. 26 reduced holding 4,509,950 shares of the company through block trade, accounting for 0.64 percent of the total share capital of the company. The shareholding of Wang declined to 15.28 percent. Shenzhen Hejun Zhengde Asset Management Company Limited and its party acting in concert Suzhou Hezheng Equity Investment Fund Management Corporation (Limited Partnership) in total hold 110 million shares of the company, accounting for 15.61 percent of the total share capital of the company, becoming the largest shareholder. There's no controlling shareholder or actual controller for the company.
○ Several companies saw increase of shareholding by actual controller or senior management
------
Actual controller of Cnlight Co., Ltd. (002076.SZ) on Dec. 23 and 26 in total increased holding 2.12 million shares of the company. General Manager of Hangzhou Hikvision Digital Technology Co., Ltd. (002415.SZ) on Dec. 27 continue to increase holding 15.5 million shares of the company. Director of Shanghai 2345 Network Holding Group Co., Ltd. (002195.SZ) on Dec. 26 and 27 increased holding 760,000 shares of the company. Controlling shareholder of Nanjing Inform Storage Equipment (group) Co., Ltd. (603066.SH) on Dec. 27 increased holding 550,000 shares of the company. Largest shareholder of Zhongshan Public Utilities Group Co., Ltd. (000685.SZ) on Dec. 26 increased holding 15.34 million shares of the company.
[Financial Reports Express]
○ North Huajin Chemical Industries and Zhongzhu Healthcare Holding forecast growth
------
North Huajin Chemical Industries Co., Ltd. (000059.SZ) forecasts 448 percent to 508 percent growth in its annual report, primarily due to the sharp decline of production cost. Zhongzhu Healthcare Holding Co., Ltd. (600568.SH) forecasts250 percent to 330 percent growth in its annual report, primarily due to it has completed the M＆A of integrated health care and recorded substantial earnings growth.
○ Friendship＆ Apollo Commercial proposes high share conversion and dividend
------
Hunan Friendship＆ Apollo Commercial Co., Ltd. (002277.SZ) revised upwardly its annual earnings. The controlling shareholder proposes 10-for-10 conversion of capital surplus in to shares combined with 1 yuan dividend for each 10 shares, and will continue to increase shareholding. Shenzhen Longood Intelligent Electric Co., Ltd. (300543.SZ) forecasts 15 percent to 29 percent growth in its annual report, and its actual controller proposes 10-for-10 conversion of capital surplus into shares with 6.5 yuan dividend for each 10 shares.
[Trading Alarm]
○ Three new shares offer for IPO on Dec. 28
------
Anhui Province Natural Gas Development Co., Ltd. (732689.SZ) will offer for subscription at 7.87 yuan per share. The upper limit for each applicant is 33,000 shares. Ningbo Tianlong Electronics Co., Ltd. (732266.SZ) will offer for subscription at 14.63 yuan per share. The upper limit for each applicant is 10,000 yuan. The company is primarily engaged in precision injection products. Wenzhou Wanlima Leather Co., Ltd. (300591.SZ) will offer for subscription at 3.07 yuan per share. The upper limit for each applicant is 24,000 shares. The company is primarily engaged in leather products.
TOP
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