Event: the company announced on October 16, after full consultation between the company and the parties to the transaction, the parties decided to terminate this major asset restructuring and sign the termination agreement of issuing shares and paying cash for asset purchase agreement, share subscription agreement and equity transfer agreement. The termination of this major asset restructuring has not adversely affected the production and operation of the company. Undertake not to plan any major asset restructuring within at least one month from the date of publication of this announcement.
The path of strategic transformation and upgrading of the company will not change. As early as 2014, the company put forward the idea of actively becoming bigger and stronger through capital operation and project mergers and acquisitions, and successively acquired a 51% stake in Xi'an OUTLETS Shopping Company and a 19% stake in Xi'an CITS, actively laying out new business and striving to build the whole tourism industry chain. In 2015, the company once again proposed to advocate Internet thinking and take the development path of new products, new resources and new models. At present, the above strategic direction of the company has entered a period of practice, although the reorganization is terminated this time, the company will continue to promote industrial transformation and upgrading, find new profit growth points, improve the company's profitability, and enhance the company's competitiveness. the development path has not changed.
On June 16 this year, Shaanxi Province issued opinions on accelerating the securitization of state-owned assets, encouraging state-controlled listed companies to be better and stronger through mergers and acquisitions, and actively encouraging qualified state-controlled listed companies to carry out cross-regional and cross-ownership mergers and acquisitions by means of equity, cash, debt financing, etc. The implementation path: first, to support provincial state-controlled listed companies to increase capital and shares or M & A by means of asset exchange and the introduction of new shareholders, so as to enlarge the asset scale and market value of listed companies. The second is to support group companies with existing listing platforms to gradually inject high-quality group assets into listed companies, so as to make listed companies become an important platform for magnifying state-owned capital and maintaining and increasing their value. Third, the listed companies with poor asset quality, poor main business and poor profitability should be reorganized within a time limit to invigorate the shell resources of listed companies. Fourth, for qualified provincial state-controlled listed companies, actively explore the implementation of equity incentives or incentive fund plans to enhance the vitality of development.
Stop the reorganization or run out of profits. Considering that the company has previously warned about the risk of major asset restructuring failure, the impact on the company's share price should have been responded, so we believe that this announcement may mean that the short-term interest has been exhausted. At the same time, the company has previously won the partner Saishi Group brand, the follow-up development is worth looking forward to. To sum up, our "2016-2018 EPS of 0.03,0.04,0.06 yuan", "2016 5 times PB, corresponding to the target price of 16.75 yuan" forecast, buy rating. Risk hint: the progress of capital operation is not as expected; the progress of state-owned enterprise reform in Shaanxi Province is not as expected.