20150702-兴业证券-A-Share_Daily_Express_11页_737kb

Summary of Document Content

Core Content

The document provides a comprehensive overview of the Chinese stock market performance on June 28 and 30, 2015, alongside detailed financial and operational data for two listed companies: Suofeiya Home Collection (002572.SZ) and Shenzhen Kingdom Sci-Tech (600446.SH). It includes market indices, sector performance, company events, analyst reports, and key financial indicators.

Market Indices Overview

• SSE Composite Index: Closed at 3912.77, down 3.48%.
• SZSE Component Index: Closed at 12924.19, down 5.32%.
• CSI 300 Index: Closed at 4108.00, down 3.41%.
• ChiNext Index: Closed at 2649.32, down 3.99%.
• HSI (Hang Seng Index): Closed at 26282.32, up 0.12%.
• HSCEI (Hang Seng China Enterprises Index): Closed at 12784.65, down 1.51%.
• Market Turnover: CNY 1286 billion, down 15.8% from previous levels.

Main Market Trends

• The Chinese stock market continued its downward trend on June 28, 2015, despite regulatory interventions such as relaxed margin buying rules and reduced transaction fees.
• Financial blue chips showed some resilience in the late afternoon, but most stocks fell sharply, dragging down indices.
• The decline was more pronounced in sectors such as oil & gas, transportation, and power, with some companies hitting daily lower limits.
• The market sentiment was generally negative, with declining issues outnumbering advancing ones by a ratio of 15.4:1.

Sector Review Highlights

• Banks: Bank of Communications (601328) rose 2.54%, while China CITIC Bank (601998) surged to daily limit.
• Oil & Gas: Petrochina (601857) jumped 8.75%, lifting the sector.
• Brokerage Firms: Huatai Securities (601688) gained 3.65%, outperforming the market.
• Transportation & Power: Suffered significant corrections, with China Southern Airlines (600029) and Daqin Railway (601006) hitting daily lower limits. GD Power (600795) and Zhejiang Zheneng (600023) plummeted by 10.00% and 9.90%, respectively.
• Light Industry & Others: Also faced substantial declines.

Daily Headlines

• The Chinese government announced measures to support equity markets, including faster introduction of margin-trading rules and lower transaction fees.
• There were discussions about potential rate cuts in the second half of the year, contingent on inflation levels.
• Experts suggested that injecting liquidity during market declines could help stabilize the stock market.
• Natural gas price liberalization was mentioned as a steady process.
• The National Development and Reform Commission (NDRC) has more projects in the pipeline, including 4 packages for emerging industries, manufacturing, logistics, and urban rail.

Company Events

• CCB (601939.SH): CSRC official Wang Lin may join the bank.
• China Comm. Const. (601800.SH): Dredging unit submitted HK listing application and signed a $705 million tunnel contract in Bangladesh; preferred share sale approved.
• China Cosco (601919.SH): Received CNY 3.96 billion in ship-scrapping subsidies.
• China Railway Gp (601390.SH): Won bids totaling ~CNY 38.2 billion.
• China Shipping Dev. (600026.SH): Xu Lirong named chairman; unit to buy 4 ships for $199.9 million.
• CRRC (601766.SH): Delivered 12 locomotives to Kenya.
• Everbright Sec. (601788.SH): Private placement approved.
• Goldwind (002202.SZ): To proceed with Australian project.
• Jiabao Ind. (600622.SH): Plans to raise up to CNY 1.99 billion in share sale.
• Jihua Gp (601718.SH): Plans to raise up to CNY 8 billion in private placement.
• Junzheng Energy (601216.SH): Plans to raise up to CNY 7 billion in share sale.
• TCL (000100.SZ): To buy back up to CNY 795 million in shares.

Suofeiya Home Collection (002572.SZ)

Key Financial Indicators

Key Financial Ratios

Company Profile

• Founded in 2001, based in Zengcheng.
• Engages in the R&D, manufacture, import, export, and distribution of kitchen devices and furniture.
• Offers customer-tailored home products including closets and furniture.
• Markets through approximately 800 outlets.

Stock Ownership Plans

• The company released a draft employee stock ownership plan (ESOP) and a plan for furniture dealers.
• Total funds raised: CNY 283 million.
• Employees and dealers could purchase up to 24.53 million shares (5.53% of total share capital).
• Lock-up periods: 12 months for employees, 30 months for dealers.
• The plans suggest confidence in the company's future and could help connect online and offline channels.

Analyst Comments

• The company is the absolute leader in the customer-tailored furniture industry.
• It derives core competence from advanced production systems and cost optimization, not just distribution.
• The company is expected to benefit from the trend of home integration.
• Earnings forecast: EPS at CNY 1.03 (2015), CNY 1.41 (2016), CNY 1.88 (2017).
• Potential risks include slower expansion into the cabinet market and intensified competition.

Shenzhen Kingdom Sci-Tech (600446.SH)

Key Financial Indicators

Company Profile

• Develops and markets financial security software.
• Provides computer system integration and maintenance services.
• Announced a 50:50 joint venture with Guofuyuan Venture Capital to offer equity-based crowd-funding services.
• Acquired 90% stake in Rengu Technology (Beijing) with CNY 9 million investment.

Analyst Comments

• The company's Internet finance innovations are showing positive results.
• Active expansion in the banking industry and equity-based crowd-funding market.
• Earnings forecast: EPS at CNY 0.81 (2015), CNY 1.17 (2016), CNY 1.65 (2017).
• Maintained BUY rating.
• Potential risks include unexpected Internet securities policies and slower progress in Internet finance development.

Key Data and Financial Highlights

Suofeiya Home Collection (002572.SZ)

• Closing Price: CNY 47.69
• Total Shares (Mn): 440.99
• Shares Outstanding (Mn): 255.54
• Market Cap (CNY/Mn): CNY 21,030.81
• Market Float (CNY/Mn): CNY 12,186.46
• Net Assets (CNY/Mn): CNY 1,980.07
• Total Assets (CNY/Mn): CNY 2,475.51
• BVPS (CNY): 4.49

Shenzhen Kingdom Sci-Tech (600446.SH)

• Closing Price: CNY 123.46
• Total Shares (Mn): 276.84
• Shares Outstanding (Mn): 265.64
• Market Cap (CNY/Mn): CNY 34,178.11
• Market Float (CNY/Mn): CNY 32,795.36
• Net Assets (CNY/Mn): CNY 868.33
• Total Assets (CNY/Mn): CNY 21,256.3
• BVPS (CNY): 3.14

Conclusion

Both companies are highlighted as promising investment opportunities. Suofeiya Home Collection is expected to benefit from the customer-tailored furniture trend, while Shenzhen Kingdom Sci-Tech is positioned to gain from its Internet finance initiatives. Analysts maintain a BUY rating for both, despite potential risks.