Events:
On February 19, 2017, Shenzhen Huicheng announced the progress of major asset restructuring. The company intends to purchase 55% of the equity of Jiangsu Qunlishi Investment and Development Co., Ltd. (hereinafter referred to as "Qunlishi") and 77.57% of Chengdu Duokemeng Network Technology Co., Ltd. (hereinafter referred to as "this transaction").
Main points of investment
1. The change of the actual controller injects new vitality into the company.
In June, the company changed the actual controller to Zhongchi Speed, which is controlled by Mr. Wang Chaoyong, chairman of Xinzhongli Group, a famous domestic investment company. Since then, based on confidence in the future development of the company, the company headed by Mr. Wang Chaoyong has increased its holdings of the company's shares for three times in a row. At the same time, the establishment of M & A fund has introduced high-quality assets such as big data, Internet services and equity of listed companies for the positive transformation of the company.
two。 Set up M & A funds to attract high-quality assets
The company has set up a 1.8 billion M & A fund to invest in groups for a century, based on the original main electrical manufacturing use of big data combined with the requirements of industry 4.0 to carry out in-depth information and intelligent transformation. Then around Internet + to build an integrated Internet service provider, invest in domestic and foreign game hairstyle platform integrated service provider duo Kemeng. Finally, the acquisition of high-quality equity investment assets of major shareholders, Xinzhongli Equity Center and Xinzhongda, to achieve a new growth point of the company's profits.
3. Investment suggestion
In view of the fact that Xin Zhongli, the parent company of Shenzhen Huicheng Holdings, has many excellent project resources and cash reserves, it is assumed that the company has completed the 100% merger and acquisition of Groupon Century and Duokemeng with cash. According to the exam prep performance of the two companies and the original main business performance of Shenzhen Huicheng, the performance in 17 / 18 is expected to be 2.91 and 3.55. The corresponding PE is 48Universe 39. Considering that the industrial investment fund has invested in Xin Zhongli Equity Center and Xin Zhongda owns part of the equity of Qingdao Tianneng heavy Industry Co., Ltd., which has been passed by IPO, part of the equity of Guangzhou Longwen Education Technology Co., Ltd., which has been acquired by listed companies frequently, and part of the equity of listed companies such as contemporary Mingcheng. After these gradual withdrawal are included in the company's operating performance, the performance is likely to improve significantly. Therefore, it is recommended to give a recommended rating.
4. Risk hint
The risk that the performance of the target of M & A falls short of the expected risk and the exit risk of the investment target.