Main points of investment:
Event: the company announced the appointment of Mr. Yao Zhenyan as deputy general manager.
The new vice president has a lot of experience, and the senior management team is like a tiger. The company announced that Mr. Yao Zhenyan will be appointed as deputy general manager. Mr. Yao Zhenyan has held important positions in a number of sports companies and has rich experience and resources in event operation, sports marketing, planning and design. The company's senior management team will add more strong players, and its sports experience and resources will contribute to the sustained and healthy development of the company's sports industry.
A number of funds have been set up and the funds are in place. The company has signed cooperation agreements with a number of enterprises and institutions and set up a number of funds, including the Asian Olympic Fund, the Sports Industry Fund (5 billion), the Culture and Sports Industry Fund (1 billion), etc., which will help to broaden the investment and financing channels of the company's sports industry.
Under the three-pronged approach of football, ice and snow and basketball, the layout of the business line is becoming more and more perfect. In terms of football, the company cooperates with Hangzhou Sports Bureau Sports Development Group to develop Zhejiang women's football team. The company's actual controller, controlling shareholder Gao Jisheng subordinate company has signed a formal acquisition of ST. An agreement for an 80% stake in MARY'S FOOTBALL GROUP LTD. In terms of ice and snow, in cooperation with CTT China GmbH Switzerland of Switzerland, the company has obtained the exclusive agency of video rights for international Class An events-World Curling Championship Tour CCT in China and video rights distribution rights in Asia; it has reached a strategic cooperation agreement with famous ski resorts in Switzerland and will actively promote ice and snow sports and ice and snow tourism projects. In basketball, the company already has two high-quality IP events, namely, the Stankovic Cup Intercontinental Basketball match and the Asian Professional Basketball League, and will continue to develop and enhance the value of IP in 2017.
Personnel, capital and business are in place, and the "two core systems" will be built continuously. So far, the company's sports personnel, funds and business have been in place, unswervingly build the "two core systems"-- high-quality IP operation system and social public sports service system, and continue to promote the transformation of sports.
Investment advice: do not rating temporarily. Based on the existing equity, the company's earnings per share in 2017 and 2018 are expected to be 0.03 yuan and 0.05 yuan respectively, and the company's closing price on May 19, 2017 is 10.31 yuan per share, corresponding to 343.67 times of PE in 2017 and 206.20 times of PE in 2018. The company's personnel, capital and business are in place, and the strategic layout is becoming more and more clear. Closely around the three major IP (football, basketball, ice and snow) + sports towns, the layout of the industrial chain upstream and downstream, to achieve the landing of sports IP. We are optimistic about the company's medium-and long-term development trend and the company's leading position in the sports industry. As the Southampton team acquisition is critical to the company's football IP and the football town project around football IP, and plays a significant role in improving the company's profits, considering that the team acquisition in the original plan is still in progress, if the acquisition is successfully completed, there is still a high probability that the company will restart the major asset restructuring related to the team in the future. In view of the great uncertainty in the acquisition of the football team and the uncertainty in profits, the rating will not be granted for the time being.
Risk hint: there is uncertainty in team acquisitions; sports towns are not as good as expected.