Main points of investment:
Company announcement / news: Luxin Venture Capital announcement board of directors through its holding subsidiary foreign investment Henderson Daxin announcement.
Summary of foreign investment: Shenzhen Huaxin Venture Capital Co., Ltd. (hereinafter referred to as "Huaxin Venture Capital"), a holding subsidiary of Luxin Venture Capital (600783), plans to contribute 37.45 million yuan to participate in Henderson's non-public offering A shares. 5 million shares of Henderson Daxin were subscribed at 7.49 yuan per share, accounting for 1.85% of the company's total share capital after the completion of the non-public offering. The participating non-public offering shares shall not be transferred within 36 months from the date of completion of the issue.
The company has been invested by Luxin Venture Capital holding subsidiary, and the transformation will be more smooth. Hengji Daxin transformed into LNG logistics and released the 2014 non-public offering A-share preliminary Plan on June 5, 2014. After all the funds raised by the company are used to supplement the company's liquidity, the company will timely promote the progress of the company's existing projects (including Jin Tengxing warehousing project, Shandong oil and gas project and LNG project in cooperation with Green Energy Hi-Tech) according to the investment plan. Luxin Venture Capital, one of the core participants in the non-public offering, announced that its board of directors announced the foreign investment announcement of Henderson through its holding subsidiary, and the company went a step further from raising funds for the non-public offering. At the same time, we think that Luxin Venture Capital, as a professional venture capital institution and its fund management model suitable for state-owned venture capital, will provide rich operation experience for the company's transformation of LNG logistics, and the company's transformation will be more smooth.
LNG logistics more than 2000 billion major markets to be developed, the company's traditional chemical logistics business month-on-month improvement. The market space of LNG logistics is more than 2000 billion. We believe that with the supply and demand of natural gas, the field of LNG logistics, which provides third-party services, will give birth to companies with a market capitalization level of 10 billion. With the continuous increase of channel value, canal-type LNG logistics company has become our most optimistic sub-industry. As for the company, in the second quarter of 2014, the company achieved operating income of 45.0001 million yuan and attributable net profit of 14 million yuan, an increase of 10.21% and-9.21% respectively over the same period last year, a significant improvement over the first quarter. Based on the fact that part of the significant improvement in operating performance comes from the Yangzhou subsidiary, we are confident that the completion of the II phase of the Yangzhou expansion project will reach production.
Maintain the profit forecast for 2014-2016 and reiterate the "overweight" rating. We maintain the profit forecast of 54 million yuan, 65 million yuan and 67 million yuan for 2014-2016 (not considering the profit contribution of investment cooperation projects and projects under construction for the time being), and the corresponding fully diluted EPS is 0.22,0.27,0.28 yuan. If we consider investment cooperation projects and projects under construction, the company's net profit will be greatly increased in the next two years. The PE corresponding to the latest stock price is 55.6X, 46.5X and 44.6X respectively. Although the valuation of PE is relatively high, we reiterate our "overweight" rating based on the company's positive outlook for the next three years after this private offering and the catalyst for oil and gas reform.