Main points of investment:
Event: the company announced "about cooperating with Zhejiang Sports Bureau to build Zhejiang women's hockey team and curling team" and "signing the cooperation agreement with the people's Government of Pengzhou City on Gexianshan Sports and Leisure Town".
Create a sports and leisure town and open up the southwest sports market. The company signed an agreement with the people's Government of Pengzhou City to jointly develop the sports and leisure town of Gexianshan, "Pengzhou" in China. With a total planned investment of 4 billion yuan and a total planned area of about 575ha, the project will create an international sports tourism resort featuring sports, leisure and entertainment, creative real estate and the settlement of Internet creators.
Jointly build Zhejiang ice hockey team and consolidate the layout of ice and snow sports industry. The company announced that it will work with Zhejiang Sports Bureau to build Zhejiang women's hockey team and Rhine Hockey Club. Listed companies are responsible for the commercial operation and management of the club and enjoy exclusive commercial development and marketing as well as the right to obtain operating income. On the other hand, the Sports Bureau of Zhejiang Province gives certain financial support and guarantee to training, equipment, participation and so on.
Investment advice: do not rating temporarily. Based on the existing equity (that is, before the implementation of the 2016 increase), 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 June 7, 2017 is 8.42 yuan per share, corresponding to 280.67 times of PE in 2017 and 168.40 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 (a major asset restructuring plan suspended by the company's announcement on April 14) is crucial to the company's football IP and the football town project around football IP, it also plays a significant role in improving the company's profits. Considering that the acquisition of the team 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.