[Today's Guide]
○ State Council General Office to support vaccines development and enhance supervision on distribution
○ Paraquat prices rise rapidly, pesticide industry booms
○ Huilong Huaze Investment bought shares of TianMuShan Pharmaceutical Enterprise by 5 pct. limit and will continue to buy more shares
○ Xinchao Energy applied to resume review over asset restructuring, Winsan (Shanghai) Medical Science And Technology sees shareholding increase again
[SSN Focus]
○ State Council General Office to support vaccines development and enhance supervision on distribution
------
The General Office of the State Council issued a guideline to boost development and management of vaccines. The guideline called for support in vaccine research and development and efforts to improve vaccine quality. Vaccine manufacturers should be encouraged to upgrade their management of vaccine quality and production, according to the document. The guideline also called for enhanced supervision of purchases and distribution of vaccines and the establishment of the cold-chain distribution management system to strengthen the administration on the cold-chain storage and distribution process.
Comment: Zhongtai Securities believes that under the centralized bidding on provincial platforms, vaccine manufacturers can effectively hedge price reduction in bidding and the loss of channels through the development or introduction of new vaccines. The HPV vaccine and pneumococcus vaccine enjoy huge potential in China. Chongqing Zhifei Biological Products Co., Ltd. (300122.SZ) and Walvax Biotechnology Co., Ltd. (300142.SZ) are developing such vaccines. The vaccine frozen storage equipment produced by Aucma Company Limited (600336.SH) may benefit from the establishment of the cold-chain distribution management system.
○ Laws and regulations involving salt reform to implement soon
------
SSN learnt from the authorities that salt laws and regulations, including the Measures on Monopoly of Table Salt and the Regulations for the Management of Salt Industry, are soliciting public opinions and might be officially launched in the first half of 2017. It is learnt that departments like the National Development and Reform Commission (NDRC) encourage all provincial-level salt enterprises to grow better and stronger, and encourage various places to establish joint-stock companies in the salt industry, advance the listing of relevant enterprises, and build cross-province industrial leaders that integrate production and sales. In addition, China National Salt Industry Corporation also proposes to "rely on capital market and strive to advance integration".
[SSN Selection]
○ The central government recently issued the Certain Opinions on Defining and Strictly Sticking to the Red Lines of Ecological Protection, requiring to fully complete the definition of red lines across the country by end 2020.
○ The Ministry of Agriculture recently released the 13th five-year plan for the development of agricultural science and technology, setting clear goals for fields like modern seed industry, agricultural mechanization and agricultural informatization.
○ As of Jan. 31, China's foreign exchange reserves stood at 2,998.2 billion US dollars, indicating that its month-on-month drop has narrowed for consecutive months.
○ Vanke announces its sales for January at 48.1 billion yuan, up by 88 percent and 106 percent respectively on a yearly and monthly basis.
○ The substantial shareholder of Henan Tongli Cement Co., Ltd. (000885.SZ) plans to decrease shareholding by no more than 20 million shares, or 4.21 percent of the total share capital, within no later than 6 months after 15 trading days.
TOP
[Industry Information]
○ Paraquat prices rise rapidly, pesticide industry booms
------
Data from www.baiinfo.com shows that China's paraquat price index on Feb. 7 surged to 18,000 yuan a tonne from 15,000 yuan a tonne, and recorded a cumulative growth of nearly 70 percent since the fourth quarter last year. Other pesticides, including imidacloprid and glufosinate-ammonium, also remained strong.
Comment: Driven by stricter environmental regulations, lack of new productivity and lower inventories, the pesticide industry is warming up. Nanjing Red Sun Co., Ltd. (000525.SZ) saw its share prices soar after announcing its first-quarter profits close to that obtained throughout last year. Zhejiang Xinan Chemical Industrial Group Co., Ltd. (600596.SH) and Nantong Jiangshan Agrochemical ＆ Chemicals Co., Ltd. (600389.SH) also said that an increase in product prices push higher their earnings.
◆ Meanwhile, prices of carbon black, refrigerant R22, cobaltous oxide and ivory board also surged significantly by 14 percent, 12 percent, 10 percent and 3 percent respectively.
TOP
[Announcement Interpretation]
○ Huilong Huaze Investment bought shares of TianMuShan Pharmaceutical Enterprise by 5 pct. limit and will continue to buy more shares
------
As Qingdao Huilong Huaze Investment Co., Ltd., an investment company under the Bureau of Finance of Laoshan District in Qingdao city, Shandong province, was rosy about future development prospect of Hangzhou TianMuShan Pharmaceutical Enterprise Co., Ltd. (600671.SH), it bought 6,089,000 stocks of the listed company during Jan. 24 and Feb. 7, accounting for 5 percent of the company's total share capital. Huilong Huaze Investment said that it intends to continue to buy 5 percent equity of the company at least in next 12 months if stock price of TianMuShan Pharmaceutical Enterprise isn't higher than 32 yuan per share. At present, the stock price is 27.98 yuan per share.
TOP
○ Shandong Xinchao Energy Corporation Limited (600777.SH) has finished auditing and evaluating assets of the targeted company it plans to acquire, and it applies to China Securities Regulatory Commission to resume review over major asset restructuring.
○ Sichuan Lanrun Asset Management Co., Ltd., shareholder of Winsan (Shanghai) Medical Science And Technology Co., Ltd. (600767.SH), continued to purchase 1.7 million stocks of the company on Feb. 7. Controlling shareholder of Taihai Manoir Nuclear Equipment Co., Ltd. (002366.SZ) increased its shareholding by 956,700 shares during Jan. 23 and Feb. 7.
○ Wuxi Lead Intelligent Equipment to acquire Titans Technology with RMB1.35 bln
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Wuxi Lead Intelligent Equipment Co., Ltd. (300450.SZ) proposes to buy the entire equities of Zhuhai Titans Technology Co., Ltd. at the consideration of 1.35 billion yuan, which will be satisfied by cash payment of 600 million yuan and fundraising about 750 million yuan from issuance of 21.85 million shares at 33.98 yuan per shares through private placement. The company at the same time proposes to raise supporting fund of no more than 621 million yuan. Products of Titans Technology include dynamic soft package battery equipment and system, dynamic shell battery equipment and system and cylindrical battery equipment and system, which could form synergy effect with the existing business of the listed company. Original shareholder of the subject company committed that net profits of the company from 2017 to 2019 will be no less than 105 million yuan, 125 million yuan and 145 million yuan.
○ Anjie Technology proposes to buy entire equities of Weibo Precision Technology with RMB3.4 bln
------
Suzhou Co., Ltd. (002635.SZ) proposes to buy the entire equities of Huizhou Weibo Precision Technology Co., Ltd. at the consideration of 3.4 billion yuan, which will be satisfied by share issuance and cash payment, to expand consumer electronics metal precision parts business. In particular, the company proposes to issue shares at 30.22 yuan per share to purchase assets, and raise supporting fund of 1.52 billion yuan by issuing shares at 30.63 yuan per share through private placement. The counterparty committed that net profits of Weibo Precision from 2047 to 2019 will be no less than 330 million yuan, 420 million yuan and 530 million yuan.
[Trading Alarm]
○ Two new shares offer for IPOs on Feb. 8
------
Fujian Haixia Environmental Protection Group Co., Ltd. (732817.SZ) will offer for subscription at 4.04 yuan per share. The upper limit for each applicant is 33,000 shares. The company is primarily engaged in sewage treatment. Suzhou Anjie Technology Co., Ltd. (300613.SZ) will offer for subscription at 55.64 yuan per share. The upper limit for each applicant is 11,000 shares. The company is primarily engaged in video monitoring chip.
TOP
○ State Council General Office to support vaccines development and enhance supervision on distribution
○ Paraquat prices rise rapidly, pesticide industry booms
○ Huilong Huaze Investment bought shares of TianMuShan Pharmaceutical Enterprise by 5 pct. limit and will continue to buy more shares
○ Xinchao Energy applied to resume review over asset restructuring, Winsan (Shanghai) Medical Science And Technology sees shareholding increase again
[SSN Focus]
○ State Council General Office to support vaccines development and enhance supervision on distribution
------
The General Office of the State Council issued a guideline to boost development and management of vaccines. The guideline called for support in vaccine research and development and efforts to improve vaccine quality. Vaccine manufacturers should be encouraged to upgrade their management of vaccine quality and production, according to the document. The guideline also called for enhanced supervision of purchases and distribution of vaccines and the establishment of the cold-chain distribution management system to strengthen the administration on the cold-chain storage and distribution process.
Comment: Zhongtai Securities believes that under the centralized bidding on provincial platforms, vaccine manufacturers can effectively hedge price reduction in bidding and the loss of channels through the development or introduction of new vaccines. The HPV vaccine and pneumococcus vaccine enjoy huge potential in China. Chongqing Zhifei Biological Products Co., Ltd. (300122.SZ) and Walvax Biotechnology Co., Ltd. (300142.SZ) are developing such vaccines. The vaccine frozen storage equipment produced by Aucma Company Limited (600336.SH) may benefit from the establishment of the cold-chain distribution management system.
○ Laws and regulations involving salt reform to implement soon
------
SSN learnt from the authorities that salt laws and regulations, including the Measures on Monopoly of Table Salt and the Regulations for the Management of Salt Industry, are soliciting public opinions and might be officially launched in the first half of 2017. It is learnt that departments like the National Development and Reform Commission (NDRC) encourage all provincial-level salt enterprises to grow better and stronger, and encourage various places to establish joint-stock companies in the salt industry, advance the listing of relevant enterprises, and build cross-province industrial leaders that integrate production and sales. In addition, China National Salt Industry Corporation also proposes to "rely on capital market and strive to advance integration".
[SSN Selection]
○ The central government recently issued the Certain Opinions on Defining and Strictly Sticking to the Red Lines of Ecological Protection, requiring to fully complete the definition of red lines across the country by end 2020.
○ The Ministry of Agriculture recently released the 13th five-year plan for the development of agricultural science and technology, setting clear goals for fields like modern seed industry, agricultural mechanization and agricultural informatization.
○ As of Jan. 31, China's foreign exchange reserves stood at 2,998.2 billion US dollars, indicating that its month-on-month drop has narrowed for consecutive months.
○ Vanke announces its sales for January at 48.1 billion yuan, up by 88 percent and 106 percent respectively on a yearly and monthly basis.
○ The substantial shareholder of Henan Tongli Cement Co., Ltd. (000885.SZ) plans to decrease shareholding by no more than 20 million shares, or 4.21 percent of the total share capital, within no later than 6 months after 15 trading days.
TOP
[Industry Information]
○ Paraquat prices rise rapidly, pesticide industry booms
------
Data from www.baiinfo.com shows that China's paraquat price index on Feb. 7 surged to 18,000 yuan a tonne from 15,000 yuan a tonne, and recorded a cumulative growth of nearly 70 percent since the fourth quarter last year. Other pesticides, including imidacloprid and glufosinate-ammonium, also remained strong.
Comment: Driven by stricter environmental regulations, lack of new productivity and lower inventories, the pesticide industry is warming up. Nanjing Red Sun Co., Ltd. (000525.SZ) saw its share prices soar after announcing its first-quarter profits close to that obtained throughout last year. Zhejiang Xinan Chemical Industrial Group Co., Ltd. (600596.SH) and Nantong Jiangshan Agrochemical ＆ Chemicals Co., Ltd. (600389.SH) also said that an increase in product prices push higher their earnings.
◆ Meanwhile, prices of carbon black, refrigerant R22, cobaltous oxide and ivory board also surged significantly by 14 percent, 12 percent, 10 percent and 3 percent respectively.
TOP
[Announcement Interpretation]
○ Huilong Huaze Investment bought shares of TianMuShan Pharmaceutical Enterprise by 5 pct. limit and will continue to buy more shares
------
As Qingdao Huilong Huaze Investment Co., Ltd., an investment company under the Bureau of Finance of Laoshan District in Qingdao city, Shandong province, was rosy about future development prospect of Hangzhou TianMuShan Pharmaceutical Enterprise Co., Ltd. (600671.SH), it bought 6,089,000 stocks of the listed company during Jan. 24 and Feb. 7, accounting for 5 percent of the company's total share capital. Huilong Huaze Investment said that it intends to continue to buy 5 percent equity of the company at least in next 12 months if stock price of TianMuShan Pharmaceutical Enterprise isn't higher than 32 yuan per share. At present, the stock price is 27.98 yuan per share.
TOP
○ Shandong Xinchao Energy Corporation Limited (600777.SH) has finished auditing and evaluating assets of the targeted company it plans to acquire, and it applies to China Securities Regulatory Commission to resume review over major asset restructuring.
○ Sichuan Lanrun Asset Management Co., Ltd., shareholder of Winsan (Shanghai) Medical Science And Technology Co., Ltd. (600767.SH), continued to purchase 1.7 million stocks of the company on Feb. 7. Controlling shareholder of Taihai Manoir Nuclear Equipment Co., Ltd. (002366.SZ) increased its shareholding by 956,700 shares during Jan. 23 and Feb. 7.
○ Wuxi Lead Intelligent Equipment to acquire Titans Technology with RMB1.35 bln
------
Wuxi Lead Intelligent Equipment Co., Ltd. (300450.SZ) proposes to buy the entire equities of Zhuhai Titans Technology Co., Ltd. at the consideration of 1.35 billion yuan, which will be satisfied by cash payment of 600 million yuan and fundraising about 750 million yuan from issuance of 21.85 million shares at 33.98 yuan per shares through private placement. The company at the same time proposes to raise supporting fund of no more than 621 million yuan. Products of Titans Technology include dynamic soft package battery equipment and system, dynamic shell battery equipment and system and cylindrical battery equipment and system, which could form synergy effect with the existing business of the listed company. Original shareholder of the subject company committed that net profits of the company from 2017 to 2019 will be no less than 105 million yuan, 125 million yuan and 145 million yuan.
○ Anjie Technology proposes to buy entire equities of Weibo Precision Technology with RMB3.4 bln
------
Suzhou Co., Ltd. (002635.SZ) proposes to buy the entire equities of Huizhou Weibo Precision Technology Co., Ltd. at the consideration of 3.4 billion yuan, which will be satisfied by share issuance and cash payment, to expand consumer electronics metal precision parts business. In particular, the company proposes to issue shares at 30.22 yuan per share to purchase assets, and raise supporting fund of 1.52 billion yuan by issuing shares at 30.63 yuan per share through private placement. The counterparty committed that net profits of Weibo Precision from 2047 to 2019 will be no less than 330 million yuan, 420 million yuan and 530 million yuan.
[Trading Alarm]
○ Two new shares offer for IPOs on Feb. 8
------
Fujian Haixia Environmental Protection Group Co., Ltd. (732817.SZ) will offer for subscription at 4.04 yuan per share. The upper limit for each applicant is 33,000 shares. The company is primarily engaged in sewage treatment. Suzhou Anjie Technology Co., Ltd. (300613.SZ) will offer for subscription at 55.64 yuan per share. The upper limit for each applicant is 11,000 shares. The company is primarily engaged in video monitoring chip.
TOP
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