Core ideas:
The increase will be smooth, and the transformation will take a solid step forward.
Hualian shares announced in the evening that the issue of shares to purchase assets by the CSRC was conditionally approved, and the transformation took a firm step. According to the previous increase plan, the company plans to issue a total of 510 million shares to CITIC Industrial Fund's Shanghai Rongshang, CITIC mezzanine and Shannan, Tibet, at a cost of 3.37 yuan per share, to acquire assets held by the Industrial Fund in Qingdao and Taiyuan under construction, and raise matching funds. After the completion of the fixed increase, Citic Industrial Fund held a total of 18.67%, making it the company's second largest shareholder, while Hualian Group, the largest shareholder, reduced its shareholding to 24.05%.
Join hands with CITIC Industrial Fund, the logic of long-term transformation is clear.
The core profit model of the company's original shopping operation is self-construction / purchase of property, which will be sold when the operation is mature, enjoy operational value-added and withdraw funds. After Dingzeng is introduced into CITIC Industrial Fund, the company will invest and incubate high-quality consumer projects under the Industrial Fund, and transform shopping center operation + equity investment two-wheel drive.
In addition to last year's ele.me ($90 million) and singing bar (160 million yuan) project, the company has completed equity investments in Wanguo apartment (230 million), Changping Longde Square (115 million) and Qingdao Changshan Xing (260 million) so far this year.
Short-term performance is under pressure, waiting for follow-up capital operation.
Due to the large number of new projects opened last year (a net increase of 13 projects in 15 years) and the disposal divestiture of mature projects (5 in 15 years + 3 in 16 years), and the performance of the main business is under pressure, we believe that in the short term, the company will mainly focus on the improvement of the main business operation capacity of shopping malls. The EPS of the temporary maintenance company in 16-18 is estimated to be 0.07, 0.16, 0.22 yuan. We are optimistic about the company's long-term strategic transformation and maintain its "buy" rating.
Risk hint.
The landing cycle of fixed increase is long; the return on equity investment fluctuates; the operating profit of shopping center declines.
