Main points of investment:
The actual controller of the company plans to change, and the stock will resume trading from January 12. On April 11, 2016, the company suspended its trading due to major planning, and then issued a preliminary plan to acquire e-sports 's assets Longlin Network and Kuaiping Network. On November 28, 2016, the company suspended trading again and terminated the acquisition of the above-mentioned e-sports assets after a brief resumption of trading. On December 26, 2016, the company announced the share transfer Agreement signed with Tibetan Longwei Culture. The agreement shows that Wanjia Group, the company's largest shareholder, transferred its 185 million tradable shares to Longwei Media, accounting for 29.135% of the total shares, with a transfer price of 3.06 billion yuan and a transfer price of 16.54 yuan per share. After the completion of the transfer, the actual controller of the company will be changed from Kong Deyong to Zhao Wei, the actual controller of Longwei Media (Longwei Media controlling shareholder, holding 95% of Longwei Media). The company's shares will resume trading on January 12 and have fallen 5.67% and 10.55% respectively during the Shanghai and Shenzhen 300 and gem periods since November.
The first transformation, dabbling in "Internet finance". The company's Internet financial information service platform "Yellow River Finance" was officially put into operation in June 2014. by the end of 15 years, it had made a total of 1.108 billion yuan in dealmaking, served nearly 300 small and medium-sized enterprises, and created a profit of 16.2 million yuan for platform investors.
The second transformation, the acquisition of Xiangtong animation into entertainment media. On June 11, 2015, the company spent 1.2 billion yuan to acquire 100% stake in Xiangtong animation and entered the entertainment industry. Xiangtong Animation was founded in 2012, the main mobile Internet animation business and derivatives and online game development, including the three major telecom operators, including a strong operating system. Its animation products have visited more than 1 billion users and ordered more than 80 million users, developed and operated PC games "Zero era", page games "God Wars", and built web game platforms "daring to play" and "65Wan". It promised that the net profit of deducting non-return from 14 to 17 years would not be less than 8370 yuan, 10988 yuan, 14145 yuan and 155.48 million yuan respectively, with an actual completion of 118.45 million yuan (+ 7.8%) in 15 years.
The establishment of Wanjia e-sports, in-depth layout of the second dimension. In September 2015, the company and Mao Kankan jointly funded the establishment of Wanjia e-sports, focusing on the overall layout of e-sports industry; and successively carried out strategic cooperation with Acfun, middle-line media (China Education Television Business Operation Company), Spring and Autumn Yongle and Youku Tudou to jointly develop two-dimensional cultural IP, e-commerce, competitive games and surrounding performances. In addition, in conjunction with Japan's top production team to launch idol girl group Astro12, tailored to create heavyweight variety, stage dramas and other offline performances, so as to achieve strong fans and multi-channel realization.
Profit forecast and valuation: there is great uncertainty in the change of the controller, so the rating will not be given for the time being. In November 2015, the company bought 100% equity in Wanjia real estate and 65% in Wanjia mining, divesting the original main business to transform and develop a new cultural and financial industry. Due to the great uncertainty that this major matter of the company involves the change of the actual controller, based on the principle of prudence, we still make profit forecasts based on the reasonable development of the company's existing business. It is estimated that the return net profit in 2016 and 2017 will be 153 million and 177 million respectively, corresponding to 66 times PE in 17 years.
Risk hints: the market systemic risk, the actual controller change there is greater uncertainty, the future development of the main business there is greater uncertainty.
