The company is mainly engaged in road passenger transport business and passenger bus station business, providing domestic and international road passenger transport services and passenger bus station services, is one of the leading road passenger transport companies in Xinjiang. In recent years, due to the re-outbreak of terrorism in Xinjiang, residents' willingness to travel has declined; at the same time, the opening of railway lines has caused a certain diversion of road transport passengers, 2014-2016H1, the company implemented operating income of 4.01,3.28 and 121 million yuan respectively, an increase of-14.90%,-17.01% and-23.45% respectively over the same period last year.
The raised capital of 165.6 million yuan will be used to increase the capital of Xinjiang Zhendong Delixi Transportation Co., Ltd. to invest in the "Wucaiwan second Class passenger Station Project of Zhendong Economic and technological Development Zone" and the natural gas bus renewal project. The increased capital passenger station expands the company's operating scale and stations, improves the competitiveness of the company's industry, and adds new profit growth points, which is conducive to the company's development of medium-and short-distance passenger transport business and multi-station joint venture advantages. Updating the natural gas bus will help the company reduce operating costs and upgrade the system at the same time.
According to the company's planned fund-raising (165.6 million) plus issuance expenses (32.7898 million) divided by the number of shares issued (33.34 million shares), the application price is 5.95 yuan per share, and the non-post-earnings ratio is 16.08 after the corresponding issue. According to the Industry Classification guidelines for listed companies formulated by the China Securities Regulatory Commission, the company belongs to the "Road 54 transport industry" under "G Transportation, warehousing and Post", with an average monthly dynamic price-to-earnings ratio of 21.09 times. According to the price-to-earnings ratio pricing method, the company's 15-year earnings per share (after dilution) is 0.37 yuan, according to the industry average price-earnings ratio of 21.09 times, the target price is 7.80 yuan.
Risk tips: the impact of riot and terrorism in Xinjiang, the impact of international relations on international passenger transport, diversion of high-speed rail, etc.