[Today's Guide]
○ Jiangsu to promote SOEs asset securitization and overall listing
○ Policy benefit further releases, sales of heavy truck to maintain growth
○ Chinese smart phone brands rise, brings opportunities to industrial chain
○ Improve Medical Instruments to raise RMB600 mln through private placement to develop principal business, Mizuda Printing ＆ Dyeing Group sees shareholding increase by individual shareholder
TOP
[SSN Focus]
○ Jiangsu to promote SOEs asset securitization and overall listing
------
Jiangsu Province will advance the upgrading of the investment with provincial state-owned capitals and operation companies to speed up in the asset securitization of state-owned enterprises (SOEs), indicated Shi Taifeng, governor of Jiangsu, in the government work report on Feb. 6. It will conduct pilot on selecting managers and professional agents through market-based methods for provincial enterprises and make innovation in the regulatory system on state-owned assets.
Comment: The asset securitization of provincial enterprises in Jiangsu is less than 20 percent and enjoys huge potential. It is learnt that Jiangsu will take advantage of resources of listed companies to promote the overall listing of competitive enterprises. In terms of the mixed ownership reform, it will select 10 enterprises to conduct pilot employee shareholding. It will also attract social capitals to establish investment funds with mixed ownership to participate in SOEs reform.
[SSN Selection]
○ The 32th meeting of the Central Leading Group for Deepening Overall Reform was held on Feb. 6, which deliberated and passed the opinions on promoting the opening of public information resources and the reform plan on facilitating the issuing of certificates of permanent residence to foreigners.
○ The central bank suspended liquidity injection into the market through reverse repurchase agreements (repo) as the liquidity in the banking system maintained at a high level after the Spring Festival.
○ Data shows that multiple domestic n-butyl alcohol producers raised their quoted price by 200 yuan per ton on Feb. 6, while urea producers raised their product price by 10-50 yuan per ton.
○ The northbound trading of Shanghai-Hong Kong Stock Connect saw a net inflow of 2.1 billion yuan on Feb. 6, the highest single-day record since August 2016.
○ Financial stocks like China Minsheng Banking Corp., Ltd., (600016.SH), China Merchants Bank Co., Ltd. (600036.SH) and China Pacific Insurance (Group) Co., Ltd. (601601.SH) saw block trading worth hundreds of millions of yuan on Feb. 6, and the sellers and buyers did the transaction in the same business department of UBS Securities.
○ The contracted sales amount of China Evergrande Group hit around 37.2 billion yuan in January, representing a year-on-year growth of 75.2 percent and a month-on-month growth of 51.7 percent, respectively.
TOP
[Industry Information]
○ Policy benefit further releases, sales of heavy truck to maintain growth
------
As reported by www.cvworld.cn, around 82,000 vehicles were sold in domestic heavy truck market in January, representing a month-on-month growth of 9 percent. The figure, hitting the highest record in January of recent six years, also represents a large growth of 122 percent from the 36,800 vehicles sold in the same period of last year. Driven by the state's new policies on overloading transportation and the coal market's demand for replenishment, highway transportation capacity is severely lacked of and the sales of new heavy trucks rapidly climbs from October 2016 to now. The heavy truck market continued high year-on-year growth in January and maintained the great momentum seen in the fourth quarter of 2016.
Comment: Securities companies said in their research reports that policies on curbing overload and over speed will bring more benefits this year. Given the low replacement rate of heavy trucks, its inventories now stand at the lowest level in 7 years. The sales of heavy trucks are expected to grow 10 to 20 percent this year. Among listed companies, CNHTC Jinan Truck Co., Ltd. (000951.SZ) forecast a growth of 40-60 percent last year due to an increase in demands for heavy trucks. Weifu High-Technology Group Co., Ltd. (000581.SZ) is a leading supplier of diesel engine's burning system. Its performance used to be highly related to the performance of the heavy truck industry and the upgrading of emission standards.
TOP
○ Chinese smart phone brands rise, brings opportunities to industrial chain
------
IDC's quarterly report shows that OPPO, Huawei and Vivo ranked top three in Chinese mobile phone market by shipment in 2016. Specifically, OPPO's shipment increased as high as 122 percent, marking its first time becoming top one. In addition, in the global market, Samsung and Apple saw their market shares shrinking, while Chinese brands Huawei, OPPO and vivo are expanding.
Comment: Securities companies think that Chinese mobile phone manufacturing isn't merely imitation and cheap copy any longer, but it boasts core innovation advantage through solid research and development. The strong rising of domestic mainstream mobile brands will bring opportunities to relevant industrial chain. Shenzhen O-film Tech Co., Ltd. (002456.SZ) ranks NO.1 in terms of shipment of touch display, fingerprint module and camera module in China and it has seen shareholding increase by its actual controller and senior managers. Sunwoda Electronic Co., Ltd. (300207.SZ) is a major cellphone battery supplier of some mobile phone makers such as OPPO, Huawei and Vivo.
TOP
[Announcement Interpretation]
○ Improve Medical Instruments to raise RMB600 mln through private placement to develop principal business
------
Guangzhou Improve Medical Instruments Co., Ltd. (300030.SZ) plans to raise no more than 600 million yuan by issuing 60 million shares at most through private placement. The fundraising will be invested in some projects of medical care products such as automated production of collection tube for liquid biopsy specimen, automated production of thrombelastogram detecting system and construction of disposable venous indwelling needle and integral moving project of hospital of traditional Chinese medicine in Yizhang County.
○ Mizuda Printing ＆ Dyeing Group sees shareholding increase by individual shareholder
------
Zhou Lingsong, the fourth biggest shareholder of Zhejiang Mizuda Printing ＆ Dyeing Group Co., Ltd. (002034.SZ), bought 2,258,600 shares of the company at a price of 40.18-49.30 yuan per share during Jan. 13 and Feb. 6, making the shares he holds account for 5 percent of the company's total share capital. The latest stock price is 49.59 yuan per share. Zhou said that the reason for increasing shareholding was that he was rosy about the company's future development prospect as well as its business transformation.
○ Brother Enterprises to expand main business with fundraising of RMB1.66 bln from private placement, two actual controllers participate in subscription
------
Brother Enterprises Holding Co., Ltd. (002562.SZ) proposes to raise no less than 1.66 billion yuan through private placement at no less than 11.2 yuan per share. The fundraising will be primarily used for hydroquinone and hydroquinone derivatives construction projects with annual capacities of 20,000 tons and 31,100 tons and diodone project with annual capacity of 1,000 tons. Qian Zhida and Qian Zhiming, two actual controllers of the company, will respectively subscribe no less than 10 percent of the shares to be issued through private placement.
○ Lanrun Asset, shareholder of Winsan (shanghai) Medical Science And Technology Co., Ltd. (600767.SH) has from Feb. 3 to 6 in total increased holding 1,630,000 shares of the company. Shenzhen Liantronics Co., Ltd. (300269.SZ) proposes to repurchase shares with a total of no more than 240 million yuan in the next twelve months at no more than 25 yuan per share.
○ Zhejiang Jingsheng Mechanical ＆ Electrical Co., Ltd. (300316.SZ) signed an agreement of purchase and sale of crystal growth system. The contract sum is 339 million yuan, accounting for 57 percent of the company's operating revenue in 2015.
[Trading Alarm]
○ Two new shares offer for IPOs on Feb. 7
------
Poten Environment Group Co., ltd. (732603.SZ) will offer for subscription at 6.74 yuan per share. The upper limit for each applicant is 12,000 shares. The company is primarily engaged in water environment solutions. Zhejiang Viewshine Intelligent Meter Stock Co., Ltd. (002849.SZ) will offer for subscription at 12.08 yuan per share. The upper limit for each applicant is 8,000 shares. The company is primarily engaged in gas meter.
TOP
○ Jiangsu to promote SOEs asset securitization and overall listing
○ Policy benefit further releases, sales of heavy truck to maintain growth
○ Chinese smart phone brands rise, brings opportunities to industrial chain
○ Improve Medical Instruments to raise RMB600 mln through private placement to develop principal business, Mizuda Printing ＆ Dyeing Group sees shareholding increase by individual shareholder
TOP
[SSN Focus]
○ Jiangsu to promote SOEs asset securitization and overall listing
------
Jiangsu Province will advance the upgrading of the investment with provincial state-owned capitals and operation companies to speed up in the asset securitization of state-owned enterprises (SOEs), indicated Shi Taifeng, governor of Jiangsu, in the government work report on Feb. 6. It will conduct pilot on selecting managers and professional agents through market-based methods for provincial enterprises and make innovation in the regulatory system on state-owned assets.
Comment: The asset securitization of provincial enterprises in Jiangsu is less than 20 percent and enjoys huge potential. It is learnt that Jiangsu will take advantage of resources of listed companies to promote the overall listing of competitive enterprises. In terms of the mixed ownership reform, it will select 10 enterprises to conduct pilot employee shareholding. It will also attract social capitals to establish investment funds with mixed ownership to participate in SOEs reform.
[SSN Selection]
○ The 32th meeting of the Central Leading Group for Deepening Overall Reform was held on Feb. 6, which deliberated and passed the opinions on promoting the opening of public information resources and the reform plan on facilitating the issuing of certificates of permanent residence to foreigners.
○ The central bank suspended liquidity injection into the market through reverse repurchase agreements (repo) as the liquidity in the banking system maintained at a high level after the Spring Festival.
○ Data shows that multiple domestic n-butyl alcohol producers raised their quoted price by 200 yuan per ton on Feb. 6, while urea producers raised their product price by 10-50 yuan per ton.
○ The northbound trading of Shanghai-Hong Kong Stock Connect saw a net inflow of 2.1 billion yuan on Feb. 6, the highest single-day record since August 2016.
○ Financial stocks like China Minsheng Banking Corp., Ltd., (600016.SH), China Merchants Bank Co., Ltd. (600036.SH) and China Pacific Insurance (Group) Co., Ltd. (601601.SH) saw block trading worth hundreds of millions of yuan on Feb. 6, and the sellers and buyers did the transaction in the same business department of UBS Securities.
○ The contracted sales amount of China Evergrande Group hit around 37.2 billion yuan in January, representing a year-on-year growth of 75.2 percent and a month-on-month growth of 51.7 percent, respectively.
TOP
[Industry Information]
○ Policy benefit further releases, sales of heavy truck to maintain growth
------
As reported by www.cvworld.cn, around 82,000 vehicles were sold in domestic heavy truck market in January, representing a month-on-month growth of 9 percent. The figure, hitting the highest record in January of recent six years, also represents a large growth of 122 percent from the 36,800 vehicles sold in the same period of last year. Driven by the state's new policies on overloading transportation and the coal market's demand for replenishment, highway transportation capacity is severely lacked of and the sales of new heavy trucks rapidly climbs from October 2016 to now. The heavy truck market continued high year-on-year growth in January and maintained the great momentum seen in the fourth quarter of 2016.
Comment: Securities companies said in their research reports that policies on curbing overload and over speed will bring more benefits this year. Given the low replacement rate of heavy trucks, its inventories now stand at the lowest level in 7 years. The sales of heavy trucks are expected to grow 10 to 20 percent this year. Among listed companies, CNHTC Jinan Truck Co., Ltd. (000951.SZ) forecast a growth of 40-60 percent last year due to an increase in demands for heavy trucks. Weifu High-Technology Group Co., Ltd. (000581.SZ) is a leading supplier of diesel engine's burning system. Its performance used to be highly related to the performance of the heavy truck industry and the upgrading of emission standards.
TOP
○ Chinese smart phone brands rise, brings opportunities to industrial chain
------
IDC's quarterly report shows that OPPO, Huawei and Vivo ranked top three in Chinese mobile phone market by shipment in 2016. Specifically, OPPO's shipment increased as high as 122 percent, marking its first time becoming top one. In addition, in the global market, Samsung and Apple saw their market shares shrinking, while Chinese brands Huawei, OPPO and vivo are expanding.
Comment: Securities companies think that Chinese mobile phone manufacturing isn't merely imitation and cheap copy any longer, but it boasts core innovation advantage through solid research and development. The strong rising of domestic mainstream mobile brands will bring opportunities to relevant industrial chain. Shenzhen O-film Tech Co., Ltd. (002456.SZ) ranks NO.1 in terms of shipment of touch display, fingerprint module and camera module in China and it has seen shareholding increase by its actual controller and senior managers. Sunwoda Electronic Co., Ltd. (300207.SZ) is a major cellphone battery supplier of some mobile phone makers such as OPPO, Huawei and Vivo.
TOP
[Announcement Interpretation]
○ Improve Medical Instruments to raise RMB600 mln through private placement to develop principal business
------
Guangzhou Improve Medical Instruments Co., Ltd. (300030.SZ) plans to raise no more than 600 million yuan by issuing 60 million shares at most through private placement. The fundraising will be invested in some projects of medical care products such as automated production of collection tube for liquid biopsy specimen, automated production of thrombelastogram detecting system and construction of disposable venous indwelling needle and integral moving project of hospital of traditional Chinese medicine in Yizhang County.
○ Mizuda Printing ＆ Dyeing Group sees shareholding increase by individual shareholder
------
Zhou Lingsong, the fourth biggest shareholder of Zhejiang Mizuda Printing ＆ Dyeing Group Co., Ltd. (002034.SZ), bought 2,258,600 shares of the company at a price of 40.18-49.30 yuan per share during Jan. 13 and Feb. 6, making the shares he holds account for 5 percent of the company's total share capital. The latest stock price is 49.59 yuan per share. Zhou said that the reason for increasing shareholding was that he was rosy about the company's future development prospect as well as its business transformation.
○ Brother Enterprises to expand main business with fundraising of RMB1.66 bln from private placement, two actual controllers participate in subscription
------
Brother Enterprises Holding Co., Ltd. (002562.SZ) proposes to raise no less than 1.66 billion yuan through private placement at no less than 11.2 yuan per share. The fundraising will be primarily used for hydroquinone and hydroquinone derivatives construction projects with annual capacities of 20,000 tons and 31,100 tons and diodone project with annual capacity of 1,000 tons. Qian Zhida and Qian Zhiming, two actual controllers of the company, will respectively subscribe no less than 10 percent of the shares to be issued through private placement.
○ Lanrun Asset, shareholder of Winsan (shanghai) Medical Science And Technology Co., Ltd. (600767.SH) has from Feb. 3 to 6 in total increased holding 1,630,000 shares of the company. Shenzhen Liantronics Co., Ltd. (300269.SZ) proposes to repurchase shares with a total of no more than 240 million yuan in the next twelve months at no more than 25 yuan per share.
○ Zhejiang Jingsheng Mechanical ＆ Electrical Co., Ltd. (300316.SZ) signed an agreement of purchase and sale of crystal growth system. The contract sum is 339 million yuan, accounting for 57 percent of the company's operating revenue in 2015.
[Trading Alarm]
○ Two new shares offer for IPOs on Feb. 7
------
Poten Environment Group Co., ltd. (732603.SZ) will offer for subscription at 6.74 yuan per share. The upper limit for each applicant is 12,000 shares. The company is primarily engaged in water environment solutions. Zhejiang Viewshine Intelligent Meter Stock Co., Ltd. (002849.SZ) will offer for subscription at 12.08 yuan per share. The upper limit for each applicant is 8,000 shares. The company is primarily engaged in gas meter.
TOP
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