[Today's Guide]
○ No. 1 central document highlights supply-side structural reform in agriculture, structural improvement enjoys huge potential
○ Research on optical communication system achieves breakthroughs, industry to continue great prosperity
○ Planning on development and utilization of geothermal energy issued and expected to bring investment worth billions yuan
○Yuan Qihong buys Donlinks International Investment to 5 percent threshold through secondary market acquisition, shareholders of Wuchangyu and Zongyi increase shareholding
[SSN Focus]
○ No. 1 central document highlights supply-side structural reform in agriculture, structural improvement enjoys huge potential
------
The Guidelines of the CPC Central Committee and State Council on Deepening Supply-side Structural Reform of Agriculture and Accelerating the Cultivation of New Growth Drivers for Agriculture and Rural Areas was released on Feb. 5. This is the 14th year in a row that the "No. 1 central document" has been devoted to agriculture, farmers and rural areas. The document calls for improving structures in the industry, promoting "green" production, extending the sector's industrial and value chain, boosting innovation, consolidating shared rural development and enhancing rural reforms. SSN has reported that with the convening of conferences supporting the supply-side structural reform in agriculture, it will enjoy priority in 2017.
Comment: Compared with the representations in the "No. 1 central documents" of previous years, the supply-side structural reform in agriculture shows that the agricultural development will not only rely on new policies. It will see systematic reforms on the whole. Institutes believe that the structural improvement will focus on the cut of corn zones without advantages, raising the proportion of appropriate scale operation, the integrated development of the first, secondary and tertiary industries in rural areas, the innovation in agricultural innovation and the promotion of water-saving technologies. Institutes are bullish about modern seeding, land transfer, agricultural machinery, farmland and water conservancy as well as other investment themes.
[SSN Selection]
○The executive meeting of the State Council held on Feb. 3 approved the 13th five-year plans for national food and drug safety, requiring improving detecting and testing systems.
○China's central bank raised the interest rates of reverse repos and standing lending facility (SLF) on Feb. 3. Institutions hold cautious expectation on capital supply in February.
○The State Council recently released the 15-year guideline for national land planning. It is proposed to construct 1.2 billion mu high-standard farmland.
○Data from www.baiinfo.com shows that domestic price of Styrene totally surged around 1,250 yuan per ton on Feb. 3 and 4, representing a price hike around 12 percent.
○Shaanxi province recently issued a circular proposing to select around 10 state-owned holding mixed-ownership enterprises to pilot employee stock ownership plan.
○Hainan province recently issued a circular to encourage the development of the cruise tourism industry. For every voyage, a maximum reward of 400,000 yuan can be granted.
TOP
[Industry Information]
○Research on optical communication system achieves breakthroughs, industry to continue great prosperity
------
FiberHome Technologies Group announced on Feb. 4 that it first realized 560Tb/s optical transmission system experiment with ultra-large capacity wavelength division multiplexing and space division multiplexing in China, enabling 13.5 billion people to communicate by telephone on the same fiber optic. It marks that China steps on a new stage in the research field of "ultra-large capacity, ultra-long distance and ultra-high speed" optical communication system. The experiment adopts fiber optic with self-owned intellectual property as transmission media.
Comment: With the rapid development of mobile Internet, cloud computing, big data and application of Internet of Things, surge in flow brings huge challenge to information communication network. Institutions believe that driven by construction and upgrading of fixed network broadband and demand of data center, optical communication market will keep high prosperity in 2017. Fiberhome Telecommunication Technologies Co., Ltd. (600498.SH) is a company under FiberHome Technologies Group. Profit of Hengtong Optic-electric Co., Ltd. (600487.SH) in 2016 is expected to move up by 1.2-1.7 times due to growth in optical communication business.
TOP
○Planning for development and utilization of geothermal energy issued and expected to bring investment worth billions yuan
------
National Development and Reform Communication (NDRC), National Energy Administration and Ministry of Land and Sources recently issued the 13th Five Year Planning for Development and Utilization of Geothermal Energy, proposing that the area of newly-added heating supply (refrigeration) with geothermal energy will increase 1.1 billion square meters to 1.6 billion square meters and the installed generating capacity through geothermal energy will be added by 500MW to reach about 530MW by 2020.
Comment: According to the planning, it is roughly estimated that heating supply (refrigeration) of shallow geothermal energy can bring investment worth about 140 billion yuan, heating supply of hydrothermal geothermal energy is able to attract investment worth about 80 billion yuan and geothermal power generation can pull investment worth about 40 billion yuan, which total about 260 billion yuan. In addition, development and utilization of geothermal energy can also boost development of a series of key technologies such as prospection and valuation of geothermal resources, well drilling, heat pump and heat transfer and equipment manufacturing industry.
TOP
[Announcement Interpretation]
○ Goocoo Robot Industry buys Donlinks International Investment to 5 percent threshold through secondary market acquisition with RMB500 mln
------
Donlinks International Investment Co., Ltd. (000893.SZ) disclosed that Goocoo Robot Industry Share Holding Co. Ltd. from Jan. 20 to Jan. 26 in aggregate increased holding 37,845,200 shares of the company, accounting for 5 percent of the company's total share capital. The average trading price was about 13.2 yuan per share, and the total turnover was about 500 million yuan. Goocoo Robot Industry indicates that it is optimistic about future development prospect of the company, and will continue to increase or decrease shareholding of the company in the next twelve month according to actual conditions.
Goocoo Robot Industry is controlled by Yuan Qihong, former actual controller of TongLing Zonfa Trinity Technology Co., Ltd. (600520.SH). Goocoo Robot Industry currently holds 25 percent shareholding of Anhui Sierte Fertilizer Industry Co., Ltd. (002538.SZ), and has signed subscription agreement with Anhui Ankai Automobile Co., Ltd., proposing to subscribe 51,546,400 shares (6.64 percent share capital) of Ankai Automobile issued in the private placement.
○ Shareholder increases holding of Wuchangyu
------
Changjin Equity Investment Partnership, shareholder of Hubei Wuchangyu Co., Ltd. (600275.SH) from Sept. 29, 2016 to Jan. 26, 2017 increased holding 2.5 percent shareholding of the company. So far, Changjin Equity Investment and its parties acting in concert in total hold 90.94 million shares of the company, accounting for 17.87 percent of the total share capital of the company.
Actual controller of Jiangsu Zongyi Co., Ltd. (600770.SZ) on Feb. 3 increased holding 3.8 million shares of the company, and proposes to increase no more than 2 percent shareholding of the company in the next six months. Controlling shareholder of Henan Senyuan Electric Co., Ltd. (002358.SZ) on Feb. 3 increased holding 4.88 million shares of the company. General manager of Guizhou Yibai Pharmaceutical Co., Ltd. (600594.SH) on Jan. 26 increased holding 1 million shares of the company.
Controlling shareholder of JiangSu Jin Tong Ling Fluid Machinery Technology Co., Ltd. (300091.SZ) on Jan. 26 increased holding 440,000 shares of the company.
○ Palm Eco-Town Development Co., Ltd. (002431.SZ) signed an agreement with the municipal government of Laiyang City with respect to the comprehensive reclamation PPP project of Wulonghe River. The contract sum is 2 billion yuan, which is more than 45 percent the company's revenue in 2015.
[Financial Reports Express]
○ Controlling shareholder of Nantong Jinghua Pharmaceutical Co., Ltd. (002349.SZ) proposes 10-for-10 conversion of capital surplus into shares combined with 1.5 yuan dividend for each 10 shares in the annual report.
TOP
○ No. 1 central document highlights supply-side structural reform in agriculture, structural improvement enjoys huge potential
○ Research on optical communication system achieves breakthroughs, industry to continue great prosperity
○ Planning on development and utilization of geothermal energy issued and expected to bring investment worth billions yuan
○Yuan Qihong buys Donlinks International Investment to 5 percent threshold through secondary market acquisition, shareholders of Wuchangyu and Zongyi increase shareholding
[SSN Focus]
○ No. 1 central document highlights supply-side structural reform in agriculture, structural improvement enjoys huge potential
------
The Guidelines of the CPC Central Committee and State Council on Deepening Supply-side Structural Reform of Agriculture and Accelerating the Cultivation of New Growth Drivers for Agriculture and Rural Areas was released on Feb. 5. This is the 14th year in a row that the "No. 1 central document" has been devoted to agriculture, farmers and rural areas. The document calls for improving structures in the industry, promoting "green" production, extending the sector's industrial and value chain, boosting innovation, consolidating shared rural development and enhancing rural reforms. SSN has reported that with the convening of conferences supporting the supply-side structural reform in agriculture, it will enjoy priority in 2017.
Comment: Compared with the representations in the "No. 1 central documents" of previous years, the supply-side structural reform in agriculture shows that the agricultural development will not only rely on new policies. It will see systematic reforms on the whole. Institutes believe that the structural improvement will focus on the cut of corn zones without advantages, raising the proportion of appropriate scale operation, the integrated development of the first, secondary and tertiary industries in rural areas, the innovation in agricultural innovation and the promotion of water-saving technologies. Institutes are bullish about modern seeding, land transfer, agricultural machinery, farmland and water conservancy as well as other investment themes.
[SSN Selection]
○The executive meeting of the State Council held on Feb. 3 approved the 13th five-year plans for national food and drug safety, requiring improving detecting and testing systems.
○China's central bank raised the interest rates of reverse repos and standing lending facility (SLF) on Feb. 3. Institutions hold cautious expectation on capital supply in February.
○The State Council recently released the 15-year guideline for national land planning. It is proposed to construct 1.2 billion mu high-standard farmland.
○Data from www.baiinfo.com shows that domestic price of Styrene totally surged around 1,250 yuan per ton on Feb. 3 and 4, representing a price hike around 12 percent.
○Shaanxi province recently issued a circular proposing to select around 10 state-owned holding mixed-ownership enterprises to pilot employee stock ownership plan.
○Hainan province recently issued a circular to encourage the development of the cruise tourism industry. For every voyage, a maximum reward of 400,000 yuan can be granted.
TOP
[Industry Information]
○Research on optical communication system achieves breakthroughs, industry to continue great prosperity
------
FiberHome Technologies Group announced on Feb. 4 that it first realized 560Tb/s optical transmission system experiment with ultra-large capacity wavelength division multiplexing and space division multiplexing in China, enabling 13.5 billion people to communicate by telephone on the same fiber optic. It marks that China steps on a new stage in the research field of "ultra-large capacity, ultra-long distance and ultra-high speed" optical communication system. The experiment adopts fiber optic with self-owned intellectual property as transmission media.
Comment: With the rapid development of mobile Internet, cloud computing, big data and application of Internet of Things, surge in flow brings huge challenge to information communication network. Institutions believe that driven by construction and upgrading of fixed network broadband and demand of data center, optical communication market will keep high prosperity in 2017. Fiberhome Telecommunication Technologies Co., Ltd. (600498.SH) is a company under FiberHome Technologies Group. Profit of Hengtong Optic-electric Co., Ltd. (600487.SH) in 2016 is expected to move up by 1.2-1.7 times due to growth in optical communication business.
TOP
○Planning for development and utilization of geothermal energy issued and expected to bring investment worth billions yuan
------
National Development and Reform Communication (NDRC), National Energy Administration and Ministry of Land and Sources recently issued the 13th Five Year Planning for Development and Utilization of Geothermal Energy, proposing that the area of newly-added heating supply (refrigeration) with geothermal energy will increase 1.1 billion square meters to 1.6 billion square meters and the installed generating capacity through geothermal energy will be added by 500MW to reach about 530MW by 2020.
Comment: According to the planning, it is roughly estimated that heating supply (refrigeration) of shallow geothermal energy can bring investment worth about 140 billion yuan, heating supply of hydrothermal geothermal energy is able to attract investment worth about 80 billion yuan and geothermal power generation can pull investment worth about 40 billion yuan, which total about 260 billion yuan. In addition, development and utilization of geothermal energy can also boost development of a series of key technologies such as prospection and valuation of geothermal resources, well drilling, heat pump and heat transfer and equipment manufacturing industry.
TOP
[Announcement Interpretation]
○ Goocoo Robot Industry buys Donlinks International Investment to 5 percent threshold through secondary market acquisition with RMB500 mln
------
Donlinks International Investment Co., Ltd. (000893.SZ) disclosed that Goocoo Robot Industry Share Holding Co. Ltd. from Jan. 20 to Jan. 26 in aggregate increased holding 37,845,200 shares of the company, accounting for 5 percent of the company's total share capital. The average trading price was about 13.2 yuan per share, and the total turnover was about 500 million yuan. Goocoo Robot Industry indicates that it is optimistic about future development prospect of the company, and will continue to increase or decrease shareholding of the company in the next twelve month according to actual conditions.
Goocoo Robot Industry is controlled by Yuan Qihong, former actual controller of TongLing Zonfa Trinity Technology Co., Ltd. (600520.SH). Goocoo Robot Industry currently holds 25 percent shareholding of Anhui Sierte Fertilizer Industry Co., Ltd. (002538.SZ), and has signed subscription agreement with Anhui Ankai Automobile Co., Ltd., proposing to subscribe 51,546,400 shares (6.64 percent share capital) of Ankai Automobile issued in the private placement.
○ Shareholder increases holding of Wuchangyu
------
Changjin Equity Investment Partnership, shareholder of Hubei Wuchangyu Co., Ltd. (600275.SH) from Sept. 29, 2016 to Jan. 26, 2017 increased holding 2.5 percent shareholding of the company. So far, Changjin Equity Investment and its parties acting in concert in total hold 90.94 million shares of the company, accounting for 17.87 percent of the total share capital of the company.
Actual controller of Jiangsu Zongyi Co., Ltd. (600770.SZ) on Feb. 3 increased holding 3.8 million shares of the company, and proposes to increase no more than 2 percent shareholding of the company in the next six months. Controlling shareholder of Henan Senyuan Electric Co., Ltd. (002358.SZ) on Feb. 3 increased holding 4.88 million shares of the company. General manager of Guizhou Yibai Pharmaceutical Co., Ltd. (600594.SH) on Jan. 26 increased holding 1 million shares of the company.
Controlling shareholder of JiangSu Jin Tong Ling Fluid Machinery Technology Co., Ltd. (300091.SZ) on Jan. 26 increased holding 440,000 shares of the company.
○ Palm Eco-Town Development Co., Ltd. (002431.SZ) signed an agreement with the municipal government of Laiyang City with respect to the comprehensive reclamation PPP project of Wulonghe River. The contract sum is 2 billion yuan, which is more than 45 percent the company's revenue in 2015.
[Financial Reports Express]
○ Controlling shareholder of Nantong Jinghua Pharmaceutical Co., Ltd. (002349.SZ) proposes 10-for-10 conversion of capital surplus into shares combined with 1.5 yuan dividend for each 10 shares in the annual report.
TOP
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