Main points of investment:
Announce the establishment of a life insurance company and complete the land compensation of Yangpu District Land Storage Center. The company announced that it invested RMB 200 million to set up a life insurance company with a total registered capital of 2 billion yuan. The company will contribute 200 million yuan in cash to participate in the establishment of Life Insurance Co., Ltd. and account for 10% of its shares. The establishment of the life insurance company will increase the company's financial attributes and further strengthen the company's investment scope and capacity. At the same time, the company announced that it received 300 million yuan in compensation for land relocation.
The company cooperates with Sanwu Group to develop Disney land. At the end of 2014, the company announced that it was prepared to cooperate with the Sanwu Group to develop the land reserve of the South sixth Highway. The area of these two pieces of land is 565 mu and 132 mu respectively. The two pieces of land are only about 4 kilometers away from the planned address of Shanghai Disney Park. They have a large space for development and growth, and are important points of interest for the company in the future. American Sanwu Group is a large multinational enterprise with diversified development, and its actual controller is the American Ghermezian family. The company involves a number of industries, which are mainly concentrated in the real estate industry, financial investment industry and manufacturing industry. The development and construction of super-large shopping and tourism centers is a major feature of the third five-year Group. This cooperation is expected to further enhance the value of the site.
The company continues to increase investment in high-altitude wind power industry. The company announced in September 2014 that it intends to invest 30 million yuan in Guangdong High altitude Wind Energy Technology Co., Ltd. In December of that year, the non-public offering plan was announced to raise 2 billion yuan from the affiliated companies of Mr. Chen Rong, the actual controller, Shanghai Rongflash Investment Center (limited partnership) and Shanghai Rongzhi Investment Center (limited partnership). As a result, a 400MW high-altitude wind power project is invested.
High-altitude power generation is a new mode of power generation with new energy. At present, the mainstream wind power generation mainly uses the wind energy in the area with a height of 100 meters, but the wind energy resources at this height are small and unstable. On the other hand, the high-altitude wind energy uses 300-1000 meters high-altitude wind energy, and its wind energy density is much higher than that of the surface wind energy, and the wind energy obtained in the same area is tens to hundreds of times that of the surface. In addition, wind energy output is also relatively stable. The large wind energy density and stability determine that the cost of high-altitude wind power generation is lower than that of other power generation equipment. High-altitude wind energy is advancing smoothly. The company has previously announced that the Wuhu high-altitude wind energy demonstration power plant project has been released for nine times from May 4 to July 12, 2015. The operating height is 132m ~ 488m, the generating voltage is 350mm to 420Vacation, the frequency range is 49.5Hz, the output power of power generation is 53 hours and the cumulative generating capacity is 31000 kWh.
Investment advice. It is estimated that the company's earnings per share in 2015 and 2016 are 0.26 yuan and 0.33 yuan respectively. As of December 17, the company closed at 59.55 yuan, corresponding to 229.0 times PE in 2015 and 180.5 times PE in 2016. In our report "Middle Road shares: Disney and High-altitude Wind Energy, dual Business highlights" on December 15, 2014, we made it clear that once the company's two major businesses are promoted, they will have a significant impact on the future development of the company. At present, the above business is advancing normally, which is a step further from the harvest time. The enterprise high-altitude wind energy business is a subversive attempt of the new energy industry, and once the breakthrough is made, it will bring about a major change to the whole industry chain. The company was given a 300x PE in 2015, corresponding to the target price of 78 yuan, and was rated as "overweight" for the first time. Risk hint. The company's business development is not up to expectations.
