Event: Zhonglu shares announcement plans to transfer the 4.0% and 0.8% shares of Guangdong High altitude Wind Energy Company held by Zhang Jianjun and Zou Nanzhi at RMB 15 million and 3 million yuan respectively, rising to 62.841%.
Maintain the overweight rating and raise the target price to 75.4 yuan. We believe that China Road will benefit from the dual catalysis of the Shanghai Walt Disney Company theme and the high-altitude wind power project. The transfer of some shares, which coincides with the critical period of trial operation, installation and commissioning of 2.5MW in Wuhu, Anhui Province, highlights the listed companies' confidence in the development of high-altitude wind power projects, raising the company's target price to 75.40 yuan and maintaining the "overweight" rating. In terms of profit forecast, we maintain our previous point of view, and we expect the company's net profit for 2015-2016 to be 115,000,000 yuan, corresponding to EPS0.36/0.43 yuan.
The transfer of part of the stake in high-altitude wind energy highlights the development confidence. China Road shares issued a fixed increase plan in December 2014, raising no more than 2.5 billion yuan (locked for three years) from the affiliated partnership controlled by Chen Rong, the actual controller of the company. Of these, 2 billion yuan is invested in the 400MW high-altitude wind power project and 500 million yuan is used to supplement working capital. After the completion of the project, it will bring the company an average annual operating income of nearly 1.1 billion yuan. The transfer of part of the equity comes at a critical period of trial installation and commissioning of 2.5MW in Wuhu, Anhui Province, highlighting the confidence of listed companies in the development of high-altitude wind power projects. After the completion of this transaction, Zhonglu will hold a total of 62.841% of Guangdong High altitude Wind Energy Company, Zhang Jianjun, the core technology backbone, will hold 30.9661% of High altitude Wind Energy, and Zou Nanzhi will hold 6.1932% of High altitude Wind Energy.
Layout businesses such as high-altitude wind energy and commercial complexes are carried out in an orderly manner, laying the foundation for the company's take-off.
We continue to be optimistic about the development prospects of high-altitude wind energy projects and commercial complex projects promoted by China Road shares in an orderly manner. In addition to the high-altitude wind energy project, the company plans to develop the Walt Disney Company commercial complex project with 700mu of land. We believe that the company is expected to become the biggest beneficiary of the completion and opening of Shanghai Walt Disney Company Paradise.
Risk hint: the progress of high-altitude wind energy and commercial complex projects is lower than expected.