Main points of investment:
The transformation of medicine, flexibility, the boat is good to turn around. The company's assets in the coal industry are relatively light, with a market capitalization of 6.7 billion, net assets of 3 billion and total assets of 5 billion. The company currently holds a 50% stake in New Continental Honda, and Honda still has a lot of cash. As the motorcycle industry is already a sunset industry, the profits of coal mines are declining, so the company has taken the initiative to reduce its investment plans in the motorcycle industry and cancelled its investment plans in yachts. A lot of money has been saved. In order to seize the opportunity of relatively cheap industrial valuation, Xinzhou United Zhongyu Capital has set up Zhongyu New Dazhou Medical Industry M & An Investment Fund with a total investment of 3 billion yuan, which will be set up in three phases, with 1 billion yuan per phase. Mr. Yu Bo, the manager of Zhongjue, has very profound experience in the pharmaceutical industry and investment experience, and the future direction of the company's development to the pharmaceutical industry is determined.
Introduce industry leaders and be good at industrial investment. The actual controller of the company originally started as a motorcycle, but in 2001, Honda was introduced as technical support because of the good prospect of motorcycles; in 2006, it acquired coal mines when coal prices just rose; in 2012, it sold 49% of its shares to Zaozhuang Mining, introduced Zaozhuang Mining, and improved technology, which made the company's profits grow against the trend when coal prices fell. In 2013, he took a stake in two large professional manufacturing companies, AVIC aircraft and San Lorenzo, and entered two industries with broad demand prospects for yachts and aircraft accessories, and is expected to enjoy a long-term growth premium. Thinking that the profit prospect of the yacht industry may be slow in 2015, cancel some of the yacht investment and switch to the pharmaceutical fund (the plan is 3 billion yuan, which is equivalent to the company's current net worth and is a huge investment project rarely seen by the company in the near future. the company is likely to transform into a pharmaceutical or professional investment company in the future).
Management shareholding, locked in for three years. In June 2014, the company's investors increased at 3.64 yuan per share, of which the management took 25 million shares and is currently the third largest shareholder of the company. as a private enterprise, we believe that the major shareholders have a very good strategic vision and the management has sufficient motivation. at the same time, we have seen a very successful investment record in the company's history, and the company's current investment direction is also very in line with the future development direction, and the company's overall interests are consistent. The prospect is promising, and it is likely to continue to become bigger and stronger.
It is estimated that from 2015 to 2017, the company will have an EPS0.08 of 0.10,0.15 yuan and give the company a target price of 9.50 yuan according to the segment valuation. The company has a price-to-book ratio of 2.3 times in 2015. In the case of widespread losses in the coal industry, the coal price in the place where the company is located is relatively strong, the motorcycle business provides the company with very stable cash flow, and the company's transformation investment has always been a leader in the industry. the establishment of the medical fund will bring new profit growth points to the company, according to 1.3 times of coal, 6.2 times of motorcycles, 4.4 times of yachts and 6 times of aircraft in 2015. The PB division of the pharmaceutical industry estimated the company's value at 9.50 yuan, gave the company a target price of 9.50 yuan, and gave it a buy rating.
Risk hint: the company has a very good record of industrial investment for a long time, but there has been a final change in the investment in the yacht business, so there is still uncertainty in the establishment of the pharmaceutical fund, and we need to be on guard against the risk of further change.