Trip to visit Chinese companies June-July 2019

Recently I just finished a long trip to visit companies in China. Some were AGMs, some were part of a group tour; some were just interviews with management. I wasn’t interested in all of them, but I wanted to write down some of my notes and thoughts. These are not in-depth, I plan to do an in-depth analysis of some. I am really grateful for meeting with K.L,  N.J of Asia Value, and Ken, and for meeting other members in Asia Value. I have visited so many companies, it will take me some time to go back and reflect on each one; these are just brief notes.

Fujian (May 13th – 15th)

Fuyao (SHSE:600660) - 福耀玻璃工业集团股份有限公司 

Fuyao Glass only focuses on automobile glass. They have their own float glass and automobile glass factories in China, USA, Russia, etc. They are the dominant supplier/OEM in China. Competitors include Asahi Glass, XinYi Glass, Nippon Glass, St. Gobain, PPG, etc. Key milestones were their partnership with St.Gobain in 1996 and PPG in 2004. 　

Anhui (May 15^th – 18^th)

Anhui Expressway (SEHK:995) - 安徽皖通高速公路股份有限公司

I wanted to understand more about expressways and it was interesting to learn that the highways from east to west were more important to Anhui expressway than the ones from North to South, which would be brining goods from Beijing to Shanghai or other provinces. This means that a lot of exported or imported goods are dependent on expressways. Also, developing countries tend to have class 3-5 (medium sized) vehicles, while developed countries tend to have pedestrian vehicles and much larger class 5-6 construction or vehicles for freight.

TsingDao (Jun 12^th- 15^th)

Haier Electronics (SEHK:1169) - 海爾電器集團有限公司

For Haier electronics, it was more of a guided tour with a lot of listeners. It seems like a lot of analysts cover appliances such as Midea, Gree, etc.

I was surprised by how many product lines there were and wonder if there’s a lack of focus. They even have a high end brand now called Carsarte. A lot of developers and hotels have their T.Vs, fridges, air conditioning, etc pre-installed.

QingDao Port (SEHK:6198) - 青岛港国际股份有限公司

QingDao’s port. It is interesting how automated some of the processes are. I need to research to see how it compares to other ports.

TsingDao Beer Museum  (SEHK:168) - 青岛啤酒股份有限公司 

I thought there would be a company visit, but it was the museum instead. It’s interesting how Germans first started the beer factory, then the Japanese took over, and eventually the communist party seized control.

Luye Pharma Group Ltd. (SEHK:2186) - 綠葉制葯

We got to see the R&D processes and the fabrication lab. My knowledge of pharmaceuticals is very weak, and I might avoid pharmaceuticals all together.

HangZhou (Jun 15^th-20^th)

Hikvision - (SZSE:002415) - 杭州海康威视数字技术股份有限公司

I’m surprised at how high tech and ubiquitous surveillance cameras have become. They can recognize your face, height, body temperature, etc. It seems like Orwell’s police state is true.

DaHua (SZSE:002236) - 浙江大华技术股份有限公司 

DaHua is also into surveillance, but they are not state-owned, which enables them to have strategic cooperation with some other countries/companies.

Jason Furniture (SHSE:603816) - 顾家家居股份有限公司

Robam Appliances (SZSE:002508) - 杭州老板电器股份有限公司 

NingBo (Jun 20^th – 22^rd)

Minth (SZSE:002508) - 杭州老板电器股份有限公司

Hua Zhong (SEHK:6830) - 華眾控股有限公司

Shanghai (Jun 22^nd – 23^rd)

Asia Value Office – presentation of Duty Free Shops

Beijing (Jun 23^th-28^th)

China Machinery Engineering Corporation (SEHK:1829) - 中国机械设备工程股份有限公司

CRRC AGM (SHSE:601766) - 中国中车股份有限公司

TravelSky (SEHK:669) - 創科實業有限公司 

Beijing ChunliZhen Medical (SEHK:1858) - 北京市春立正达医疗器械股份有限公司

Chengsha, Jilin (July 1^st-5^th)

JiuGuiJiu (SZSE:000799) - 酒鬼酒股份有限公司 

(Previously the strongest baijiu company, stronger than MaoTai and WuLiangYe, fell from grace)

JinDong Group (private Baijiu company) 金東集團 -  (一壇好酒, 開口笑, 湘窖)

YuTong (Manufacturer for buses) (SHSE:600066) - 郑州宇通客车股份有限公司