[Today's Guide]
○ Fuchunjiang Environmental Thermoelectric and SGSG Science ＆ Technology to release annual reports first on SZSE with performance growth
○ National memorizer base project to start construction, Threshold on subsidiary for new energy vehicle raised
○ Great Wall Movie And Television to acquire two film ＆ TV assets with RMB1,900 mln, Addsino invests nearly RMB1.5 bln to wholly control information security operator
○ Largest shareholder bought Sihuan Bioengineering to 5 pct again through secondary market acquisition
[SSN Focus]
○ Fuchunjiang Environmental Thermoelectric and SGSG Science ＆ Technology to release annual reports first on SZSE with performance growth
------
Shenzhen Stock Exchange released the arrangement on the disclosure of 2016 annual reports of listed companies. Zhejiang Fuchunjiang Environmental Thermoelectric Co., Ltd. (002479.SZ) and SGSG Science ＆ Technology Co., Ltd. Zhuhai (300561.SZ) will release their annual reports first on Jan. 17, 2017. CASIN Guoxing Property Development Co., Ltd. (000838.SZ), Jilin Gpro Titanium Industry Co., Ltd. (000545.SZ), Zhejiang Garden Bio-chemical High-tech Co., Ltd. (300401.SZ), Zhejiang Jindun Fans Co., Ltd. (300411.SZ), Jiangsu Yunyi Electric Co., Ltd. (300304.SZ), Shandong Wohua Pharmaceutical Co., Ltd. (002107.SZ) and Chongqing Sansheng Industrial Co., Ltd. (002742.SZ) will release their annual reports in January.
Comment: Institutes' statistics show that listed companies releasing annual reports generally enjoy stronger profitability. Shanghai Beite Technology Co., Ltd. (603009.SH), which will release the annual report first on Shanghai Stock Exchange, has been surging by the daily limit for two consecutive days last week. Among the companies to release annual reports earlier, Fuchunjiang Environmental Thermoelectric and SGSG Science ＆ Technology expected a year-on-year increase of 20-40 percent and 2-16 percent in net profit for the whole year. Gpro Titanium Industry announced price rises on titanium dioxide products. The Vitamin D3 program of Garden Bio-chemical High-tech was expected to make profit in the fourth quarter. Yunyi Electric proposed high share conversion and dividend. As for subsequent performance, companies in the household appliance and project machinery industries with outstanding performance as well as the spirit and chemical engineering industries benefiting from price rises are favored by institutes.
[SSN Selection]
○ The meeting of the Leading Group for Overall Reform held on Dec. 20, 2016 deliberated the highlights in 2017, requiring advancing significant SOEs, fiscal and taxation as well as financial reforms.
○ The manufacturing PMI declined 0.3 percentage points to 51.4 percent in December 2016. The production cut caused by the haze resulted in significant decreases in the iron ＆ steel and other industries.
○ China Securities Regulatory Commission approved the IPO applications of five companies, which are expected to raise no more than 2.6 billion yuan.
○The State Administration of Foreign Exchange indicated that Chinese foreign exchange purchase quota of 50,000 US dollars a year per person remains unchanged. Banks' responsibility on the examination of authenticity and compliance will be intensified.
○Banks are required to report all yuan-denominated cash transactions exceeding 50,000 yuan to the People's Bank of China (PBOC), down from the current level of 200,000 yuan. Cross-border transfers more than 200,000 yuan by individuals will also be subject to the report process.
○Huawei expects to record 520 billion yuan in sales revenue for 2016, representing a 32 percent year-on-year jump. The company is building an ecology platform centering on products like virtual reality (VR) and electronic bracelets.
TOP
【Industry information】
○National memorizer base project to start construction, relevant companies to see benefit
------
As reported by the Xinhua News Agency, the national memorizer base project, involving a total investment of 24 billion US dollars, officially starts construction in the Wuhan East Lake Hi-tech Development Zone. Upon completion in 2020, its annual output will exceed 10 billion US dollars. The project, jointly invested in by Tsinghua Unigroup, China Integrated Circuit Industrial Fund and etc., focuses on chip manufacturing, and integrates the product design, technology R＆D and sales of memorizer as well as the production and testing of wafer together. Upon completion, the project will also boost the development of design, packaging, manufacturing, application and etc. of the chip industry.
Comment: According to data from IC Insights, global memorizer market recorded 83.5 billon US dollars in 2015 and the memorizer is a pillar of the semi-conductor industry. Higher requirement will be raised on the performance and memory space of memorizers in the future, highlighting the strategic position of memorizer. Institutions believe that Unigroup Guoxin Co., Ltd. (002049.SZ), the only listed company involving memorizer chips under Tsinghua Unigroup, will benefit the most from the development of the memorizer industry; Hubei Dinglong Co., Ltd. (300054.SZ) is the only CMP consumable supplier in China. As a local company in Wuhan, the company might become the supplier of aforesaid memorizer project.
○Threshold on subsidiary for new energy vehicle raised, ternary lithium battery sees development opportunity
------
4 commissions and ministries including Ministry of Finance released a circular on adjusting policy on fiscal subsidiary for promoting new energy vehicles on Dec. 30, 2016. Subsidiary standard and upper limit from central and local governments for various kinds of vehicles except fuel-celled cars will decrease by 20 percent during 2019 and 2020. Besides, local government's subsidiary should not be 50 percent higher than central government's subsidiary for single vehicle. Subsidiaries from central government and local governments were the same before. New policy will be implemented from Jan. 1, 2017.
Comment: The circular has raised threshold for fiscal subsidiary from the aspects of vehicle consumption, driving range, battery performance and safety requirement. Vehicles with higher energy density of battery will obtain more subsidiaries. Institutions think the subsidiary standard gets stricter in many aspects, which will help leading enterprises with technological advantage expand market share and ternary battery with higher energy density will embrace development opportunity. Revenues from cobalt products of Zhejiang Huayou Cobalt Co., Ltd. (603799.SH) accounts for nearly 60 percent of the company's operating revenues and cobalt price increases continuously. Beijing Easpring Material Technology Co., Ltd. (300073.SZ) is engaged in ternary cathode materials for lithium battery.
TOP
[Announcement Interpretation]
○Addsino invests nearly RMB1.5 bln to wholly control information security operator
------
Addsino Co., Ltd. (000547.SZ) plans to acquire 66 percent equity of Beijing Tianxin Ruian Technology Co., Ltd. at 1.494 billion yuan by issuing 110 million shares at a price of 13.58 yuan per share to The Third Research Institute of Ministry of Public Security and others. Appreciation ratio is estimated to be 1,805.28 percent. The company will raise 1.36 billion yuan by issuing 100 million shares at the same price to China Aerospace Science ＆ Industry Corp. and other companies. The fundraising will be used for operation of next generation of information security and cloud service platform project of Tianxin Ruian Technology and securities service platform project and data flow project specific to over 100G optical networks. The counterparty promises that net profit after extraordinary gains and losses of Tianxin Ruian Technology won't be less than 125 million yuan, 178 million yuan, 216 million yuan and 251 million yuan during 2016 and 2019 respectively.
○Great Wall Movie And Television to acquire two film ＆ TV assets with RMB1,900 mln
------
Great Wall Movie And Television Co., Ltd. (002071.SZ) proposes to acquire the 100 percent equities of Beijing Premiere Age Cultural ＆ Media Co., Ltd held by Gu Changwei family and ZheJiang Tonight Films Co., Ltd. listing on the New Third Board with 1,350 million yuan and 545 million yuan respectively. It will issue 87,825,200 shares to Premiere Age's shareholders at a price of 12.3 yuan per share, and pay 270 million yuan in cash; 22,154,500 shares and 273 million yuan in cash for shareholders of Tonight Films. Meanwhile, it plans to issue the shares at the same price so as to raise the supporting fund no more than 563 million yuan.
Premiere Age promises to achieve a net profit no less than 52 million yuan, 90 million yuan, 125 million yuan and 159 million yuan from 2016 to 2019 respectively, with figures no less than 20 million yuan, 38 million yuan, 50 million yuan and 60 million yuan respectively for Tonight Films.
○Top Choice Medical Investment to raise fund by private placement for constructing women ＆ children Hospital, senior management covers nearly 80 pct of subscriptions
------
Top Choice Medical Investment Co., Inc. (600763.SH) plans to raise 1,400 million yuan through private placement with no more than 47,058,800 shares at 29.75 yuan per share to invest and construct Zhejiang Savaid Women ＆ Children Hospital. Especially, Lv Jianming, actual controller of the listed company, will carry out subscription with 805 million yuan; additionally, Zhuji TCMedical.com.cn Inc. held by senior management of the listed company, No.1 TC asset management plan under employee shareholding plan, and Lu Zhaoxi, former CEO of Alibaba, will do so with 237 million yuan, 58.34 million yuan and 100 million yuan respectively.
TOP
○ Largest shareholder bought Sihuan Bioengineering to 5 pct again through secondary market acquisition
------
Kunshan Chunagye Investment Co., Ltd., largest shareholder of Jiangsu Sihuan Bioengineering Co., Ltd. (000518.SZ) and it parties acting in concert Kunshan Chuangye Holdings and Kunshan Energy Construction Development Co., ltd. have jointly increased shareholdings in the company. Shares held by the three parties in total account for 10 percent of total share capital of the listed company. Previously, the company was bought by small and medium- sized investment companies.
○ Suning Commerce buys entire equity of TTK Express with RMB4.2 billion
------
Suning Logistics, wholly owned subsidiary of Suning Commerce Group Co., Ltd. (002024.SZ), proposes to buy 70 percent equities of TTK Express with 2,975 million yuan in cash. Within 12 months after the delivery, Suning Logistics will buy the remainder 30 percent equities of TTK Express with 1,275 million yuan. The forecasted net profits of TTK Express in 2016 and 2017 after deducted of tax are no less than 84 million yuan and 180 million yuan.
[Financial Reports Express]
○ Changjiang Publishing ＆ Media forecasts growth
------
Changjiang Publishing ＆ Media Co., Ltd. (600757.SH) forecasts 65 percent to 85 percent growth in the annual report, primarily due to the rapid development of issuing business and increase of revenue from financial investment.
[Trading Alarms]
○ Three new shares offer for IPO on Jan. 3
------
PNC Systems (732690.SZ) will offer for subscription at 1.73 yuan per share. The upper limit for each applicant is 20,000 shares. The company provides high purity process system solutions. Weaver Network Co., Ltd. (732039.SZ) will offer for subscription at 14.9 yuan per share. The upper limit for each applicant is 16,000 shares. The company is primarily engaged in coordinated management software. Guangdong Hoshion Industrial Aluminium Co., Ltd. (002824.SZ) will offer for subscription at 9.8 yuan per share. The upper limit for each applicant is 12,000 shares. The company is primarily involved in aluminum alloy products.
TOP
○ Fuchunjiang Environmental Thermoelectric and SGSG Science ＆ Technology to release annual reports first on SZSE with performance growth
○ National memorizer base project to start construction, Threshold on subsidiary for new energy vehicle raised
○ Great Wall Movie And Television to acquire two film ＆ TV assets with RMB1,900 mln, Addsino invests nearly RMB1.5 bln to wholly control information security operator
○ Largest shareholder bought Sihuan Bioengineering to 5 pct again through secondary market acquisition
[SSN Focus]
○ Fuchunjiang Environmental Thermoelectric and SGSG Science ＆ Technology to release annual reports first on SZSE with performance growth
------
Shenzhen Stock Exchange released the arrangement on the disclosure of 2016 annual reports of listed companies. Zhejiang Fuchunjiang Environmental Thermoelectric Co., Ltd. (002479.SZ) and SGSG Science ＆ Technology Co., Ltd. Zhuhai (300561.SZ) will release their annual reports first on Jan. 17, 2017. CASIN Guoxing Property Development Co., Ltd. (000838.SZ), Jilin Gpro Titanium Industry Co., Ltd. (000545.SZ), Zhejiang Garden Bio-chemical High-tech Co., Ltd. (300401.SZ), Zhejiang Jindun Fans Co., Ltd. (300411.SZ), Jiangsu Yunyi Electric Co., Ltd. (300304.SZ), Shandong Wohua Pharmaceutical Co., Ltd. (002107.SZ) and Chongqing Sansheng Industrial Co., Ltd. (002742.SZ) will release their annual reports in January.
Comment: Institutes' statistics show that listed companies releasing annual reports generally enjoy stronger profitability. Shanghai Beite Technology Co., Ltd. (603009.SH), which will release the annual report first on Shanghai Stock Exchange, has been surging by the daily limit for two consecutive days last week. Among the companies to release annual reports earlier, Fuchunjiang Environmental Thermoelectric and SGSG Science ＆ Technology expected a year-on-year increase of 20-40 percent and 2-16 percent in net profit for the whole year. Gpro Titanium Industry announced price rises on titanium dioxide products. The Vitamin D3 program of Garden Bio-chemical High-tech was expected to make profit in the fourth quarter. Yunyi Electric proposed high share conversion and dividend. As for subsequent performance, companies in the household appliance and project machinery industries with outstanding performance as well as the spirit and chemical engineering industries benefiting from price rises are favored by institutes.
[SSN Selection]
○ The meeting of the Leading Group for Overall Reform held on Dec. 20, 2016 deliberated the highlights in 2017, requiring advancing significant SOEs, fiscal and taxation as well as financial reforms.
○ The manufacturing PMI declined 0.3 percentage points to 51.4 percent in December 2016. The production cut caused by the haze resulted in significant decreases in the iron ＆ steel and other industries.
○ China Securities Regulatory Commission approved the IPO applications of five companies, which are expected to raise no more than 2.6 billion yuan.
○The State Administration of Foreign Exchange indicated that Chinese foreign exchange purchase quota of 50,000 US dollars a year per person remains unchanged. Banks' responsibility on the examination of authenticity and compliance will be intensified.
○Banks are required to report all yuan-denominated cash transactions exceeding 50,000 yuan to the People's Bank of China (PBOC), down from the current level of 200,000 yuan. Cross-border transfers more than 200,000 yuan by individuals will also be subject to the report process.
○Huawei expects to record 520 billion yuan in sales revenue for 2016, representing a 32 percent year-on-year jump. The company is building an ecology platform centering on products like virtual reality (VR) and electronic bracelets.
TOP
【Industry information】
○National memorizer base project to start construction, relevant companies to see benefit
------
As reported by the Xinhua News Agency, the national memorizer base project, involving a total investment of 24 billion US dollars, officially starts construction in the Wuhan East Lake Hi-tech Development Zone. Upon completion in 2020, its annual output will exceed 10 billion US dollars. The project, jointly invested in by Tsinghua Unigroup, China Integrated Circuit Industrial Fund and etc., focuses on chip manufacturing, and integrates the product design, technology R＆D and sales of memorizer as well as the production and testing of wafer together. Upon completion, the project will also boost the development of design, packaging, manufacturing, application and etc. of the chip industry.
Comment: According to data from IC Insights, global memorizer market recorded 83.5 billon US dollars in 2015 and the memorizer is a pillar of the semi-conductor industry. Higher requirement will be raised on the performance and memory space of memorizers in the future, highlighting the strategic position of memorizer. Institutions believe that Unigroup Guoxin Co., Ltd. (002049.SZ), the only listed company involving memorizer chips under Tsinghua Unigroup, will benefit the most from the development of the memorizer industry; Hubei Dinglong Co., Ltd. (300054.SZ) is the only CMP consumable supplier in China. As a local company in Wuhan, the company might become the supplier of aforesaid memorizer project.
○Threshold on subsidiary for new energy vehicle raised, ternary lithium battery sees development opportunity
------
4 commissions and ministries including Ministry of Finance released a circular on adjusting policy on fiscal subsidiary for promoting new energy vehicles on Dec. 30, 2016. Subsidiary standard and upper limit from central and local governments for various kinds of vehicles except fuel-celled cars will decrease by 20 percent during 2019 and 2020. Besides, local government's subsidiary should not be 50 percent higher than central government's subsidiary for single vehicle. Subsidiaries from central government and local governments were the same before. New policy will be implemented from Jan. 1, 2017.
Comment: The circular has raised threshold for fiscal subsidiary from the aspects of vehicle consumption, driving range, battery performance and safety requirement. Vehicles with higher energy density of battery will obtain more subsidiaries. Institutions think the subsidiary standard gets stricter in many aspects, which will help leading enterprises with technological advantage expand market share and ternary battery with higher energy density will embrace development opportunity. Revenues from cobalt products of Zhejiang Huayou Cobalt Co., Ltd. (603799.SH) accounts for nearly 60 percent of the company's operating revenues and cobalt price increases continuously. Beijing Easpring Material Technology Co., Ltd. (300073.SZ) is engaged in ternary cathode materials for lithium battery.
TOP
[Announcement Interpretation]
○Addsino invests nearly RMB1.5 bln to wholly control information security operator
------
Addsino Co., Ltd. (000547.SZ) plans to acquire 66 percent equity of Beijing Tianxin Ruian Technology Co., Ltd. at 1.494 billion yuan by issuing 110 million shares at a price of 13.58 yuan per share to The Third Research Institute of Ministry of Public Security and others. Appreciation ratio is estimated to be 1,805.28 percent. The company will raise 1.36 billion yuan by issuing 100 million shares at the same price to China Aerospace Science ＆ Industry Corp. and other companies. The fundraising will be used for operation of next generation of information security and cloud service platform project of Tianxin Ruian Technology and securities service platform project and data flow project specific to over 100G optical networks. The counterparty promises that net profit after extraordinary gains and losses of Tianxin Ruian Technology won't be less than 125 million yuan, 178 million yuan, 216 million yuan and 251 million yuan during 2016 and 2019 respectively.
○Great Wall Movie And Television to acquire two film ＆ TV assets with RMB1,900 mln
------
Great Wall Movie And Television Co., Ltd. (002071.SZ) proposes to acquire the 100 percent equities of Beijing Premiere Age Cultural ＆ Media Co., Ltd held by Gu Changwei family and ZheJiang Tonight Films Co., Ltd. listing on the New Third Board with 1,350 million yuan and 545 million yuan respectively. It will issue 87,825,200 shares to Premiere Age's shareholders at a price of 12.3 yuan per share, and pay 270 million yuan in cash; 22,154,500 shares and 273 million yuan in cash for shareholders of Tonight Films. Meanwhile, it plans to issue the shares at the same price so as to raise the supporting fund no more than 563 million yuan.
Premiere Age promises to achieve a net profit no less than 52 million yuan, 90 million yuan, 125 million yuan and 159 million yuan from 2016 to 2019 respectively, with figures no less than 20 million yuan, 38 million yuan, 50 million yuan and 60 million yuan respectively for Tonight Films.
○Top Choice Medical Investment to raise fund by private placement for constructing women ＆ children Hospital, senior management covers nearly 80 pct of subscriptions
------
Top Choice Medical Investment Co., Inc. (600763.SH) plans to raise 1,400 million yuan through private placement with no more than 47,058,800 shares at 29.75 yuan per share to invest and construct Zhejiang Savaid Women ＆ Children Hospital. Especially, Lv Jianming, actual controller of the listed company, will carry out subscription with 805 million yuan; additionally, Zhuji TCMedical.com.cn Inc. held by senior management of the listed company, No.1 TC asset management plan under employee shareholding plan, and Lu Zhaoxi, former CEO of Alibaba, will do so with 237 million yuan, 58.34 million yuan and 100 million yuan respectively.
TOP
○ Largest shareholder bought Sihuan Bioengineering to 5 pct again through secondary market acquisition
------
Kunshan Chunagye Investment Co., Ltd., largest shareholder of Jiangsu Sihuan Bioengineering Co., Ltd. (000518.SZ) and it parties acting in concert Kunshan Chuangye Holdings and Kunshan Energy Construction Development Co., ltd. have jointly increased shareholdings in the company. Shares held by the three parties in total account for 10 percent of total share capital of the listed company. Previously, the company was bought by small and medium- sized investment companies.
○ Suning Commerce buys entire equity of TTK Express with RMB4.2 billion
------
Suning Logistics, wholly owned subsidiary of Suning Commerce Group Co., Ltd. (002024.SZ), proposes to buy 70 percent equities of TTK Express with 2,975 million yuan in cash. Within 12 months after the delivery, Suning Logistics will buy the remainder 30 percent equities of TTK Express with 1,275 million yuan. The forecasted net profits of TTK Express in 2016 and 2017 after deducted of tax are no less than 84 million yuan and 180 million yuan.
[Financial Reports Express]
○ Changjiang Publishing ＆ Media forecasts growth
------
Changjiang Publishing ＆ Media Co., Ltd. (600757.SH) forecasts 65 percent to 85 percent growth in the annual report, primarily due to the rapid development of issuing business and increase of revenue from financial investment.
[Trading Alarms]
○ Three new shares offer for IPO on Jan. 3
------
PNC Systems (732690.SZ) will offer for subscription at 1.73 yuan per share. The upper limit for each applicant is 20,000 shares. The company provides high purity process system solutions. Weaver Network Co., Ltd. (732039.SZ) will offer for subscription at 14.9 yuan per share. The upper limit for each applicant is 16,000 shares. The company is primarily engaged in coordinated management software. Guangdong Hoshion Industrial Aluminium Co., Ltd. (002824.SZ) will offer for subscription at 9.8 yuan per share. The upper limit for each applicant is 12,000 shares. The company is primarily involved in aluminum alloy products.
TOP
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