This report is read as follows:
Perhaps it is the name of the motorcycle company in this new continent that the market does not give him the premium he deserves to transform the aircraft and yacht industry.
Main points of investment:
Maintain the new continent increase rating, and forecast that the new continent EPS will be 0.12,0.13,0.18 yuan from 2014 to 2016. The company's coal business is estimated to be worth 1.34 billion according to 31 times PE, while other businesses are estimated to be worth 3.32 billion according to the median PB of the industry, with a total company value of 4.66 billion yuan, converted to a target price of 5.8yuan per share.
The company's biggest attraction is that it has taken the first step into the yacht and aircraft industry. 1), the company takes a 22.99% stake in St. Lorenzo, the world's second largest yacht manufacturer, acquires Hong Kong St. Lorenzo China sales Company, and sets up a subsidiary with St. Lorenzo in Hainan, which will produce all kinds of yachts on demand, and the company will deliver its first product in early 2015. 2) through the reform of state-owned enterprises, CNAC took a 10% stake in the manufacture of aircraft components, and established AVIC New Oceania Airlines (45%), supporting large aircraft engines and taking the first step into the aircraft manufacturing industry.
Coal business is growing against the trend. In 2012, the company introduced partner Zaozhuang Mining, whose rich coal mining experience significantly reduced the company's mining costs, stabilizing the company's coal business net profit at 110 million in 2012 and 2013, despite the decline in coal prices due to lower costs and higher production. The company's coal profits still increased by 13% in the first half of 2014.
The company is good at grasping the timing of investment and is good at introducing high-quality partners to solve business problems. In 2001, motorcycles had a good prospect and were introduced into Honda; in 2006, coal mines were purchased when coal prices just rose; in 2012, Zaozhuang Mining was introduced to improve the growth of technology profits against the trend; and in 2013, it entered two industries with broad demand prospects for yachts and aircraft accessories, which are expected to enjoy a long-term growth premium.
Risk hint: the State Council is not effective in extricating coal enterprises from difficulties, and the start-up time of demand for yachts and aircraft may be slower than market expectations.