Matters: the private increase plan announced by the company has been approved in principle by the State-owned assets Supervision and Administration Commission of the Beijing Municipal people's Government. At the same time, the company will hold a shareholders' meeting on June 19.
Peace viewpoint:
The introduction of Zengyi into CDC has been approved by SASAC: the company's previously announced non-public plan is to raise 48 million shares of CDB, with a total planned fund of 600 million yuan. After the completion of the increase, the company's share capital expanded to 300 million shares, of which Beijing Tianzhu Airport Economic Development Company, a major shareholder, accounted for 49%, and Guokai Finance accounted for 16%. The fixed increase plan has been agreed by SASAC in principle, and the follow-up company will continue to promote the introduction of CDF through this increase to promote the transformation and upgrading of the company's existing business.
CDB has strong financial strength and rich resources in the field of equity direct investment and urban exhibition: CDB is wholly owned by CDB, mainly engaged in private equity funds, direct investment and other business, with a registered capital of 35 billion yuan. The core advantage of CDB Finance is that it has the only RMB equity investment license in the domestic banking industry, and its business relies on CDB's strong operating platform and local government resources. Experienced in the field of equity direct investment and urban exhibition.
CDF is expected to help the company achieve a breakthrough in business upgrading and remote replication: the introduction of CDF this time reflects the firm determination of management to improve the company's business situation. The company still has more than 4000 mu of land reserve in the airport area, which will form a new type of industrial cluster with the airport economic zone as the core in the future. By the end of March 2015, more than 2200 enterprises have moved into the park, mainly aviation logistics, electronic information, cultural and creative enterprises. We judge that with the entry of CDF, the company will actively participate in small and medium-sized companies or provide financial services for small and medium-sized enterprises. Relying on the resource network of CDF, it is also expected to achieve the pace of gradually radiating the whole country from Beijing to Beijing, Tianjin and Hebei.
Profit forecast: due to the decline in previous profits, the company's market capitalization is currently the smallest of its kind. We estimate that the EPS of the company from 2015 to 2016 is 0.20 and 0.25RMB respectively, corresponding to the PE of 118x in 2015, and the industry average is 92 times. The valuation is still at a reasonable level. Considering that the introduction of CDF is of inflection point to the company's operation and management, and at the same time, the company's first-level opening reserves and corporate resources will also support the future business upgrading exhibition, we are optimistic about the management right premium brought by the CDF's ownership. We believe that there is much room for improvement in the company's market capitalization, covering and giving a "strongly recommended" rating for the first time.
Risk hint: the increase is not as expected.
