Main points of the briefing: the company's future business will show a "tripod" situation, namely: health products, real estate and financial equity investment. At present, each section is accounted for and assessed independently, and there is a special management team responsible for management.
The possible transformation direction of the company in the future is "financial holding company" and "asset enterprise".
We think the latter is more likely. Because the high-tech project itself requires a long period of investment and training, the initial return is very low, and the performance of listed companies can not be supported in the short term, and the same is true of venture capital companies. Only enterprises with resources can achieve the effect of short-term profit. However, because some of the asset impairment involves the cases of former executives, even the restructuring can only be carried out after the case has a clear conclusion and implementation. However, we believe that transformation and capital recovery will be a trading investment opportunity for the company in the future.
From a purely bad point of view, however, there is still nearly 26 million of the possible provision. As for the decline in inventory prices and the impairment of fixed assets, we think that with the large provision of 40 million yuan for Hunan Jinnong last year, the space for provision this year is limited. As a result, this year's asset impairment loss will be smaller than last year's level.
We believe that the company belongs to a typical "value reversal" enterprise, which foreshadowed the next change by withdrawing large asset impairment losses through a big "bath" in 2008. Therefore, in the future, whether it is a huge amount of impairment preparation to return funds, or the asset restructuring of the company, or even the sale of financial assets or the listing of venture capital companies will bring better trading investment opportunities, but in view of the current development of the main industry and high market capitalization. We give it a "wait and see" rating.
