Company announcement as of August 9, controlling shareholder Langfang Holdings accumulated 7.4437 million shares of the company, accounting for 1.96% of the total share capital, with an average transaction price of 23.62 yuan per share, with a total amount of 176 million yuan, with a cumulative holding of 58.1737 million shares, accounting for 15.30% of the total share capital. surpassing Evergrande Group to become the largest shareholder again.
Main points of investment:
The company is the only state-controlled listed company in Langfang. The increase of the controlling shareholder Langfang Holdings is based on the fact that the company plays an important role in the strategic planning of Langfang Holdings, which can meet the development strategy of "one body and two wings" with urban development as the main body and industrial operation and capital innovation as the two wings. On July 13, Langfang Holdings plans to increase its shares in the company by choosing an opportunity to increase its shares within six months from the date of resumption of trading, with an amount of between 50 million and 500 million yuan. From July 21 to August 9, 2016, Langfang Holdings bought 7.4437 million shares of Langfang Development through the Shanghai Stock Exchange, accounting for 1.96% of the total share capital. the average transaction price was 23.62 yuan per share, with a total amount of 175.8275 million yuan, which is still 324.1725 million yuan from the upper limit of the planned increase. Based on the current share price of 24.46 yuan per share, Langfang Holdings can still increase its holdings by about 13.2532 million shares, accounting for 3.49% of the total share capital. The total shareholding ratio is about 18.89%.
Evergrande raised its cards several times in a few months. Evergrande Real Estate Group bought 19.028 million shares of Langfang Development on April 11 / 12, accounting for 5.005%, increasing the average holding price by 15.30 yuan per share, listing for the first time and becoming the second largest shareholder; after the resumption of trading, the company increased its holdings again by 18.989 million shares, accounting for 4.995%, with an average holding price of 14.06 yuan per share, with a total shareholding of 10%. On August 4, it increased its holdings by 19.008 million shares, accounting for 5%, with an average price of 20.98 yuan per share, with a total shareholding of 15%. Evergrande plans to increase its holdings in the secondary market by not less than RMB 50 million in the next 12 months. At the current share price of RMB 24.46 per share, Evergrande will increase its holdings by about 2.0442 million shares, accounting for 0.54 per cent of the total share capital, with a total shareholding of about 15.54 per cent.
As the only listing platform of Langfang State Asset, Langfang State Asset is not willing to give up control easily: the current market value of the company is about 9.3 billion yuan, and Evergrande has a strong desire to continue to fight for control. In the future, we will pay attention to the possible changes in the fundamentals of the company. As a contested shell company, the shell value is more valuable than the profit forecast at present. It is suggested that we should continue to pay attention to the price fluctuation opportunities that may be brought about by the equity dispute. It is prudent to estimate that the EPS for 16-18 will be 0.02,0.02,0.02 yuan, maintaining the "recommended" rating.
Risk hint: the uncertain risk of the equity dispute and the risk that the improvement of the main business is less than expected.