Events:

The company recently issued a resumption announcement: cash acquisition of 5% stake in Amon Energy held in Xiangjiang; establishment of an industrial M & A fund; and signing a strategic cooperation framework agreement with Shaanxi Financial Control.

Comments:

1, the suspension of the acquisition of 100% stake in Amon Energy failed to land, but does not rule out the possibility of continuing the acquisition within 3 months.

The company announced in January 15 that quasi-oil shares and Amon Energy formed a joint venture company to invest in the acquisition of Galaz block, of which Amon Energy Holdings 65%, Amon Energy was set up by Chuangyue Energy and Sunghui Xiangjiang Joint Venture, and Chuangyue Energy accounted for 95%.

The announcement revealed that the suspension originally intended to acquire 100% stake in Amon Energy, but failed to land in the end, and the completion of the replenishment and increase may be an important inducement. At the same time, the company disclosed that the acquisition of 100% stake in Amon Energy is expected to cost 450 million yuan, and does not rule out the acquisition of 95% stake in Amon Energy in the next three months, and major shareholders do not have the possibility of arbitrage.

2, the layout of the financial sector, the follow-up trend is worthy of attention.

The company contributed 4 million yuan, accounting for 40% of the registered capital, and Rongxi Investment as a LP, initiated the establishment of the former Haizhouyou M & A fund. The first phase of the M & A fund is 3 billion yuan, of which LP contributes 100 million yuan proportionally.

Signed a strategic cooperation agreement with Shaanxi Financial Control, the two sides carried out cooperation in the fields of energy transactions, M & A funds, Internet finance, and business cooperation between Zhunyou and Shaanxi Nonferrous Metals Trading Center, a subsidiary of Shaanxi Financial Control.

Chuang Yue Energy's business model has always adhered to the principle of "light assets and fast turnover". The M & A project of the company focuses on the blocks in the exploration and mining stage, which can not only combine the company's advantages in geological exploration, but also pave the way for "light assets and high turnover". From the point of view of the establishment of M & A funds and cooperation with Shaanxi Financial Control, the company began to lay out the financial sector.

3. The progress of Galaz shows that the merger and acquisition of the company can stand up to scrutiny.

The Galaz oil field proves the company's ability. A lot of evidence shows that the reserve determination of NW-konys block is conservative, the price is fair, the output of single well and the quality of crude oil are excellent. Although the current price of crude oil has softened substantially, in terms of asset quality, M & A projects can withstand scrutiny and inspection.

From the acquisition of Galaz block, the company has a strong team in reservoir and geology, and has the potential to make use of poor technology and poor information to discover more than expected reservoirs.

3. Maintain the investment rating of "prudent recommendation-A".

We estimate that the company's earnings per share from 2015 to 2017 are 0.06,0.28 and 0.67 yuan respectively, taking into account the possible breakthrough of NW-konys147 square kilometers and other factors, maintain the "prudent recommendation-A" investment rating.

Risk hint: progress in Central Asia is slow.