Founder Fubon's two fixed increase asset management plans announced the reduction plan, we believe that institutional shareholders fixed increase in product maturity earnings, is not related to the fundamentals of the company's conventional reduction. Guohua Life Insurance is deeply involved in the company's investment: it will increase its market value by 3.3 billion yuan and invest 13.3 billion yuan in the acquisition of Ingram. Tianhai Investment acquisition of Ingram Micro Inc.,IMI (Yingmai) has completed delivery, becoming the true leader of the global IT supply chain. The shipping industry has a strong cyclical nature, and the worst is over. Maintain the "highly recommended-A" investment rating.
Event: founder Fubon's two fixed-increase asset management plans plan to reduce the company's shares by means of centralized bidding or block trading, no more than 320756001 shares (accounting for 11.06% of the company's total share capital). The total number of shares reduced within six months through centralized bidding transactions and within any three consecutive months does not exceed 1% of the total shares of the company, and within six months through bulk trading.
With regard to this reduction, we believe that it is the product maturity income increased by institutional shareholders, which has nothing to do with the fundamentals of the company. (1) this reduction is the expiration of the products increased by institutional shareholders and the need to cash in earnings, which has nothing to do with the fundamentals of the company. (2) the company's latest closing price is 8.33 yuan, up 39% from the fixed price increase at the end of 2014. The last private offering of Tianhai Investment raised a net amount of 11.774 billion yuan, which was completed on December 29, 2014, with an offering price of 5.98 yuan. Subscribe for: HNA Logistics Group (major shareholder), Guohua Life Insurance, Shanghai Bank Fund Management Plan, founder Fubon Fund Management Plan, Caitong Fund Management Plan. (3) similar to this reduction plan, the asset management plan of Caitong Fund in 2016 is also a regular reduction, which has nothing to do with the fundamentals of the company.
Guohua Life Insurance is deeply involved in the company's investment: in addition to the fixed increase (market value 3.3 billion yuan); the acquisition of Ingram, Guohua Life Insurance invested 13.3 billion yuan. In addition to the fixed increase at the end of 2014 (14.45% of the total equity, with the latest market capitalization of about 3.3 billion yuan), it participated in the acquisition of Ingram International in 2016 (an one-time investment of 4 billion yuan, and another participating bank loan of 31.5% to 9.3 billion yuan). The acquisition of Yingmai and Guohua Life Insurance invested a total of 13.3 billion yuan).
Investment advice: we believe that the company's profitability is expected to improve significantly, to maintain the "highly recommended-A". We predict that the IT supply chain industry will grow steadily in the future, and the market for integrated service providers is vast. The acquisition of Ingram International, a leading company in the industry, will bring good synergy to the company. It is estimated that in 2017-18, EPS will reach 0.38 yuan and 0.50 yuan, maintaining the "highly recommended-A" investment rating.
Risk hint: corporate culture integration risk, business integration risk.
