Item:
Tiancheng Holdings announced on the evening of March 9 that it planned to raise 4.88 billion yuan with an additional 400 million shares at 12.2 yuan per share, of which 220 million shares were subscribed by major shareholders.
Peace viewpoint:
Locate Internet finance and actively promote transformation: the company's suspension defines the future layout of Internet finance, and the total amount of funds raised by the company's private bank does not exceed RMB 4.88 billion yuan. After deducting the bank fees, all of them will be used for the construction of small and micro financial services platform based on mobile Internet. The small and micro financial service platform based on mobile Internet is designed to serve nearly 55 million small and micro businesses and customers across the country. to solve the financial survival state of small and micro "difficult to collect", "difficult to apply", "difficult to settle accounts", "difficult to withdraw", "difficult to serve" and "difficult to finance", and has more room for business development. At the same time, through this fixed increase, the holding proportion of major shareholders and concerted actors has increased from 20.90% to 35.90%, leaving room for the company to push its capital operation step by step.
The company has been planning the layout of Internet finance for a long time, and with the help of third-party payment and smart city layout, the format of Internet finance will be gradually improved: after obtaining a third-party payment license to "buy a 100% stake in Guohua Huiyin" in November 2013, the Internet Finance Business Department was formally established and officially began to get involved in Internet finance. Since 2014, the company has successfully signed the Strategic Cooperation Agreement on the Construction Project of Digital Service platform with the six people's governments of Zunyi City, Linfen City, Baoshan City, Baoding City, Hezhou City and Laiwu City. According to the agreement, the company will join local business operators and public industry units to interconnect the bank's digital system, through the "Tianchengtong" smart terminal and smart card launched in the city. To provide more intelligent living payment and payment facilities for local small and micro enterprises and urban residents. Making use of the unique strategic cooperation point of the smart city, the company will more conveniently promote the "Tianchengtong" mobile intelligent terminal and smart card, and turn the small and micro enterprises in the smart city into a financial service network that can provide more abundant financial services, so as to improve the operating profits of small and micro enterprises.
With the steady progress of medium and high voltage, the company hopes to promote profits after the mineral resources are put into production: the company's traditional main business is gas equipment manufacturing, the sales volume of on-load tap-changer in the field of high voltage ranks third in the world, and its domestic market share ranks first.
Considering that the existing high-and medium-voltage market competition is sufficient, the market share and business model of the company's main products are becoming more and more stable. In the future, the company will focus on the research and development of tap-changers with voltage levels above 220 kV, and strive to actively expand into the UHV field. In recent years, the company has successively integrated many molybdenum-nickel ore resources in Guizhou Province, and officially opened up the field of African zirconium-titanium resources through asset exchange in January 2014. In the future, the company will focus on the field of resources and energy, actively promote the construction of zirconium-titanium production and processing base in Mozambique, deeply explore the zirconium-titanium resources in the region, and continue to expand to this field through self-construction, purchase and other ways. At present, some of the company's mineral projects are still under construction, and with the commissioning of these projects, the company's profits are expected to be improved.
Profit forecast and investment advice: without considering the company's future purchase and thickening performance, the company's EPS is expected to be 0.02,0.06 and 0.16 yuan in 14-16 years, corresponding to the closing price PE of 771.3, 244.6 and 96.5 times respectively on March 10. We are optimistic about the development potential of the company's future Internet financial layout and maintain the "recommended" rating.
Risk tips: 1) the extension expansion is not as expected; 2) the risk of overseas policy fluctuations.