[Today's Guide]
○ China to deepen reform on construction industry, leaders to benefit
○ Largest RQFII fund sees consecutive subscription, funds flow back to RMB-denominated assets
○ Building material industry to push forward supply side reform, glass ＆ cements sector expected to cut productivity
○ SLAC Precision Equipment and Zhongli Group to launch employee shareholding plans, Mayinglong Phar. Group to raise price of its principal product
[SSN Focus]
○ China to deepen reform on construction industry, leaders to benefit
------
China will deepen the reform in the construction industry to promote the upgrading and development of the industry, according to the document of the State Council executive meeting held on Feb. 8. It proposed to establish a unified and open construction market, break regional barriers and cancel unreasonable access restrictions on construction enterprises in all regions and industries. It required catching up internationally advanced criteria, improving the design and construction level of construction, promote intelligent and prefabricated construction and improve the arrangement on projects construction. It will speed up in the contract of projects, improve the administration of the construction of projects invested by the government and establish professional consultancy and construction enterprises.
Comment: Driven by the promotion of the PPP model and policies on maintaining stable economic growth, the investment in infrastructure is likely to maintain at a relatively high level this year. The cancellation of regional barriers will facilitate leading enterprises in gaining higher market share. Shanghai Construction Group Co., Ltd. (600170.SH) has proposed the employee shareholding plan with sufficient orders. Arcplus Group PLC (600629.SH) has consolidated many construction design institutes, which caught much attention from institutes. In addition, as more policies on supporting prefabricated construction released, institutes estimate that it will maintain an annual average growth of 20 percent in the following decade and the market will reach 2.8 trillion yuan by 2025. They are rosy about Hangxiao Steel Structure Co., Ltd. (600477.SH), Anhui Honglu Steel Construction (Group) Co., Ltd. (002541.SZ) and other steel structure companies
TOP
○ Largest RQFII fund sees consecutive subscription, funds flow back to RMB-denominated assets
------
SSN learns from people close with the management of CSOPFTSE China A50 ETF that the fund is subscribed for the fourth consecutive trading day since Feb. 3 and sees a net inflow of nearly 400 million yuan. CSOPFTSE China A50 ETF is the largest RQFII A-share ETF in Hong Kong and it once suffered net redemption for seven consecutive months since July 2016 and saw a net outflow of over 7 billion yuan. RQFII fund managers indicated that since the mainland China maintains steady economic growth, signs show that overseas fund have started to flow back to RMB-denominated assets like A shares.
[SSN Selection]
○ China Securities Regulatory Commission (CSRC) on Feb. 8 replied the proposal of the Chinese People's Political Consultative Conference (CPPCC) that it will strengthen the examination over the merger and acquisition (M＆A) of enterprises and intensify the supervision over performance compensation.
○ The net profit of 24 listed securities companies in January 2017 recorded 3.163 billion yuan. The merger and acquisition (M＆A) and reorganization business, driven by state-owned enterprises reform and etc., catches institutions' attention.
○ The Ministry of Agriculture on Feb. 8 held a special forum to accelerate the construction of modern milk industry. Five actions including guaranteeing quality pasture and developing healthy breeding will be carried out.
○ Data from www.100ppi.com shows that Zhejiang Satellite Petrochemical Co., Ltd. (002648.SZ) raised the quoted price of acrylic acid by around 2 percent on Feb. 8, representing that the price of acrylic acid has hiked around 70 percent since the fourth quarter of 2016.
○ China's first National Engineering Laboratory for Big Data Circulation and Transaction Technology, to be jointly constructed by Inspur Group and Shanghai Data Exchange Corporation, is nodded by the National Development and Reform Commission (NDRC).
TOP
[Industry Information]
○ Building material industry to push forward supply side reform, glass ＆ cements sector expected to cut productivity
------
China's building material industry should seek progress while maintaining stability to push forward the supply-side structural reform, make market play a decisive role in resource allocation and give a better play to government, so as to resolve excess production capacity in the building material industry and other traditional industries and solve acute structural imbalance, said Xu Lejiang, vice minister of the Ministry of Industry and Information Technology (MIIT) during an inspection to China Building Material Federation, according to the MIIT's website.
Comment: Guosen Securities noted earlier in its research report that the supply side reform in the iron ＆ steel and coal industries has achieved affects. This year polices are expected to extend to other industries with production capacity. The supply side reform is expected to be carried out in the glass industry. Glass enterprises, such as Zhuzhou Kibing Group Co., Ltd. (601636.SH) and CSG Holding Co., Ltd. (000012.SZ), are first choices for the reform. Cement enterprises, including state-owned company Tangshan Jidong Cement Co., Ltd. (000401.SZ), are among first choices for the reform.
○ MIIT adds number code for IoTs, IoTs industry grows faster
------
SSN learnt that China is improving its regulatory service system for the Internet of Things (IoTs). The Ministry of Industry and Information Technology (MIIT) is preparing a new numbering plan for telecommunication network, which also includes numbers for the IoTs. According to the new plan, the MIIT makes codes "142XX～143XX" for IoTs number. Code 144XX is for China Mobile Limited (CHL.NYSE; 00941.HK), 141XX for China Telecom Corporation Limited (CHA.NYSE; 00728.HK) and 140XX for China United Network Communications Limited (600050.SH).
Comment: Under the guidance of the MIIT, the three major telecom operators have made plans for IoTs for 2017. For example, China Mobile plans to attract 25 million users for its OneNET platform this year. As for information technology application, the company will provide a package of solutions based on information technology for government, finance and education. It is expected that driven by the MIIT and the three telecom operators, IoTs will become popular soon.
TOP
[Announcement Interpretation]
○ SLAC Precision Equipment to repurchase stocks to launch employee shareholding plan
------
Suzhou SLAC Precision Equipment Co., Ltd. plans to repurchase the company's stocks worth no more than 75 million yuan at a price of 50 yuan per share at most, which will be taken in employee shareholding plan in the future. Besides, the company intends to raise 25 million yuan at most from employees and amplify it to 75 million yuan through asset management plan of subscription to repurchase the stocks. The latest stock price of the company is 43.38 yuan per share.
Besides, Jiangsu Zhongli Group Co., Ltd. (002309.SZ) plans to launch employee shareholding plan phase-1 to raise 100 million yuan at most. Zhonghai Trust Co., Ltd. will establish special capital trust plan and set up priority and general funds at a proportion of 1:1 with a total amount of no more than 200 million yuan.
○ Mayinglong Phar. Group to raise price of its principal product
------
Mayinglong Pharmaceutical Group Co., Ltd. (600993.SH) decided to raise supply price of its principal product Mayinglong hemorrhoids ointment (with weight of 10g) by 18 percent from the date that the announcement is released. After the price hike, the company predicts that this product will see improvement in sales revenues and gross margin this year. It is learnt that sales revenues and gross margin of this product registered 177 million yuan and 135 million yuan during January and September of 2016.
○ Jiaao Enprotech develops biodiesel product for export to Europe
------
Zhejiang Jiaao Enprotech Stock Co., Ltd. (603822.SH) announced that it has successfully developed renewable biomass fuel products conform to the requirements of the EU market, and signed a trial order contract with volume 1,300 tons for the export to Europe. This technology can effectively prevent inappropriate reutilization of swill-cooked dirty oil, as well as provide clean and environmental friendly renewable biomass fuel products to the society, driving the company to make a step forward in this area.
○ Huayu Gardening, subsidiary of Shandong Lipeng Co., Ltd. (002374.SZ), has won the bid for an ecological restoration comprehensive treatment project. The bid price is 1,584 million yuan, accounting for 117 percent of the company's operating revenue in 2015. Wuxi Xuelang Environmental Technology Co., Ltd. (300382.SZ) has won the bid of a flue gas purification system equipment procurement project with a sum of 220 million yuan, which accounts for 38 percent of the company's operating revenue in 2015.
○ Actual controller of Jiangsu Zongyi Co., Ltd. (600770.SH) from Feb. 3 to 8 in total increased holding 6.02 million shares of the company. Controlling shareholder of Yantai Shuangta Food Co., Ltd. (002481.SZ) increased holding 1 percent shares of the company. Lingzi Investment, shareholder of Shanghai New Huang Pu Real Estate Co., Ltd. (600638.SH), from Jan. 16 to Feb. 8 increased holding 20 million shares of the company. Actual controller of Lepu Medical Technology (Beijing) Co., Ltd. (300003.SZ) on Feb. 8 increased holding 590,000 shares of the company.
[Financial Reports Express]
○ Zhejiang Fuchunjiang Environmental Thermoelectric Co., Ltd. (002479.SZ) forecast 80 percent to 100 percent performance growth in Q1, primarily due to the price hike of heat supply as a result of growing demand.
[Trading Alarm]
○ Two new shares offer for IPOs on Feb. 9
------
Chongqing Construction Engineering Group Corporation Limited (730939.SZ) will offer for subscription at 3.12 yuan per share. The upper limit for each applicant is 54,000 shares. The company is primarily involved in building construction engineering. Zhejiang Meili High Technology Co., Ltd. (300611.SZ) will offer for subscription at 11.97 yuan per share. The upper limit for each applicant is 8,500 shares. The company is primarily engaged in automobile springs.
TOP
○ China to deepen reform on construction industry, leaders to benefit
○ Largest RQFII fund sees consecutive subscription, funds flow back to RMB-denominated assets
○ Building material industry to push forward supply side reform, glass ＆ cements sector expected to cut productivity
○ SLAC Precision Equipment and Zhongli Group to launch employee shareholding plans, Mayinglong Phar. Group to raise price of its principal product
[SSN Focus]
○ China to deepen reform on construction industry, leaders to benefit
------
China will deepen the reform in the construction industry to promote the upgrading and development of the industry, according to the document of the State Council executive meeting held on Feb. 8. It proposed to establish a unified and open construction market, break regional barriers and cancel unreasonable access restrictions on construction enterprises in all regions and industries. It required catching up internationally advanced criteria, improving the design and construction level of construction, promote intelligent and prefabricated construction and improve the arrangement on projects construction. It will speed up in the contract of projects, improve the administration of the construction of projects invested by the government and establish professional consultancy and construction enterprises.
Comment: Driven by the promotion of the PPP model and policies on maintaining stable economic growth, the investment in infrastructure is likely to maintain at a relatively high level this year. The cancellation of regional barriers will facilitate leading enterprises in gaining higher market share. Shanghai Construction Group Co., Ltd. (600170.SH) has proposed the employee shareholding plan with sufficient orders. Arcplus Group PLC (600629.SH) has consolidated many construction design institutes, which caught much attention from institutes. In addition, as more policies on supporting prefabricated construction released, institutes estimate that it will maintain an annual average growth of 20 percent in the following decade and the market will reach 2.8 trillion yuan by 2025. They are rosy about Hangxiao Steel Structure Co., Ltd. (600477.SH), Anhui Honglu Steel Construction (Group) Co., Ltd. (002541.SZ) and other steel structure companies
TOP
○ Largest RQFII fund sees consecutive subscription, funds flow back to RMB-denominated assets
------
SSN learns from people close with the management of CSOPFTSE China A50 ETF that the fund is subscribed for the fourth consecutive trading day since Feb. 3 and sees a net inflow of nearly 400 million yuan. CSOPFTSE China A50 ETF is the largest RQFII A-share ETF in Hong Kong and it once suffered net redemption for seven consecutive months since July 2016 and saw a net outflow of over 7 billion yuan. RQFII fund managers indicated that since the mainland China maintains steady economic growth, signs show that overseas fund have started to flow back to RMB-denominated assets like A shares.
[SSN Selection]
○ China Securities Regulatory Commission (CSRC) on Feb. 8 replied the proposal of the Chinese People's Political Consultative Conference (CPPCC) that it will strengthen the examination over the merger and acquisition (M＆A) of enterprises and intensify the supervision over performance compensation.
○ The net profit of 24 listed securities companies in January 2017 recorded 3.163 billion yuan. The merger and acquisition (M＆A) and reorganization business, driven by state-owned enterprises reform and etc., catches institutions' attention.
○ The Ministry of Agriculture on Feb. 8 held a special forum to accelerate the construction of modern milk industry. Five actions including guaranteeing quality pasture and developing healthy breeding will be carried out.
○ Data from www.100ppi.com shows that Zhejiang Satellite Petrochemical Co., Ltd. (002648.SZ) raised the quoted price of acrylic acid by around 2 percent on Feb. 8, representing that the price of acrylic acid has hiked around 70 percent since the fourth quarter of 2016.
○ China's first National Engineering Laboratory for Big Data Circulation and Transaction Technology, to be jointly constructed by Inspur Group and Shanghai Data Exchange Corporation, is nodded by the National Development and Reform Commission (NDRC).
TOP
[Industry Information]
○ Building material industry to push forward supply side reform, glass ＆ cements sector expected to cut productivity
------
China's building material industry should seek progress while maintaining stability to push forward the supply-side structural reform, make market play a decisive role in resource allocation and give a better play to government, so as to resolve excess production capacity in the building material industry and other traditional industries and solve acute structural imbalance, said Xu Lejiang, vice minister of the Ministry of Industry and Information Technology (MIIT) during an inspection to China Building Material Federation, according to the MIIT's website.
Comment: Guosen Securities noted earlier in its research report that the supply side reform in the iron ＆ steel and coal industries has achieved affects. This year polices are expected to extend to other industries with production capacity. The supply side reform is expected to be carried out in the glass industry. Glass enterprises, such as Zhuzhou Kibing Group Co., Ltd. (601636.SH) and CSG Holding Co., Ltd. (000012.SZ), are first choices for the reform. Cement enterprises, including state-owned company Tangshan Jidong Cement Co., Ltd. (000401.SZ), are among first choices for the reform.
○ MIIT adds number code for IoTs, IoTs industry grows faster
------
SSN learnt that China is improving its regulatory service system for the Internet of Things (IoTs). The Ministry of Industry and Information Technology (MIIT) is preparing a new numbering plan for telecommunication network, which also includes numbers for the IoTs. According to the new plan, the MIIT makes codes "142XX～143XX" for IoTs number. Code 144XX is for China Mobile Limited (CHL.NYSE; 00941.HK), 141XX for China Telecom Corporation Limited (CHA.NYSE; 00728.HK) and 140XX for China United Network Communications Limited (600050.SH).
Comment: Under the guidance of the MIIT, the three major telecom operators have made plans for IoTs for 2017. For example, China Mobile plans to attract 25 million users for its OneNET platform this year. As for information technology application, the company will provide a package of solutions based on information technology for government, finance and education. It is expected that driven by the MIIT and the three telecom operators, IoTs will become popular soon.
TOP
[Announcement Interpretation]
○ SLAC Precision Equipment to repurchase stocks to launch employee shareholding plan
------
Suzhou SLAC Precision Equipment Co., Ltd. plans to repurchase the company's stocks worth no more than 75 million yuan at a price of 50 yuan per share at most, which will be taken in employee shareholding plan in the future. Besides, the company intends to raise 25 million yuan at most from employees and amplify it to 75 million yuan through asset management plan of subscription to repurchase the stocks. The latest stock price of the company is 43.38 yuan per share.
Besides, Jiangsu Zhongli Group Co., Ltd. (002309.SZ) plans to launch employee shareholding plan phase-1 to raise 100 million yuan at most. Zhonghai Trust Co., Ltd. will establish special capital trust plan and set up priority and general funds at a proportion of 1:1 with a total amount of no more than 200 million yuan.
○ Mayinglong Phar. Group to raise price of its principal product
------
Mayinglong Pharmaceutical Group Co., Ltd. (600993.SH) decided to raise supply price of its principal product Mayinglong hemorrhoids ointment (with weight of 10g) by 18 percent from the date that the announcement is released. After the price hike, the company predicts that this product will see improvement in sales revenues and gross margin this year. It is learnt that sales revenues and gross margin of this product registered 177 million yuan and 135 million yuan during January and September of 2016.
○ Jiaao Enprotech develops biodiesel product for export to Europe
------
Zhejiang Jiaao Enprotech Stock Co., Ltd. (603822.SH) announced that it has successfully developed renewable biomass fuel products conform to the requirements of the EU market, and signed a trial order contract with volume 1,300 tons for the export to Europe. This technology can effectively prevent inappropriate reutilization of swill-cooked dirty oil, as well as provide clean and environmental friendly renewable biomass fuel products to the society, driving the company to make a step forward in this area.
○ Huayu Gardening, subsidiary of Shandong Lipeng Co., Ltd. (002374.SZ), has won the bid for an ecological restoration comprehensive treatment project. The bid price is 1,584 million yuan, accounting for 117 percent of the company's operating revenue in 2015. Wuxi Xuelang Environmental Technology Co., Ltd. (300382.SZ) has won the bid of a flue gas purification system equipment procurement project with a sum of 220 million yuan, which accounts for 38 percent of the company's operating revenue in 2015.
○ Actual controller of Jiangsu Zongyi Co., Ltd. (600770.SH) from Feb. 3 to 8 in total increased holding 6.02 million shares of the company. Controlling shareholder of Yantai Shuangta Food Co., Ltd. (002481.SZ) increased holding 1 percent shares of the company. Lingzi Investment, shareholder of Shanghai New Huang Pu Real Estate Co., Ltd. (600638.SH), from Jan. 16 to Feb. 8 increased holding 20 million shares of the company. Actual controller of Lepu Medical Technology (Beijing) Co., Ltd. (300003.SZ) on Feb. 8 increased holding 590,000 shares of the company.
[Financial Reports Express]
○ Zhejiang Fuchunjiang Environmental Thermoelectric Co., Ltd. (002479.SZ) forecast 80 percent to 100 percent performance growth in Q1, primarily due to the price hike of heat supply as a result of growing demand.
[Trading Alarm]
○ Two new shares offer for IPOs on Feb. 9
------
Chongqing Construction Engineering Group Corporation Limited (730939.SZ) will offer for subscription at 3.12 yuan per share. The upper limit for each applicant is 54,000 shares. The company is primarily involved in building construction engineering. Zhejiang Meili High Technology Co., Ltd. (300611.SZ) will offer for subscription at 11.97 yuan per share. The upper limit for each applicant is 8,500 shares. The company is primarily engaged in automobile springs.
TOP
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