Investment logic
The profit of Changjiang Investment increased by 200% in the first half of the year, and the Metal Trading Center is expected to contribute 150 million yuan for the whole year. According to the preliminary calculation of the company's financial department, it is estimated that the net profit belonging to shareholders of listed companies in the first half of 2016 will increase by about 200% compared with the same period last year, reaching 75 million yuan. Changjiang Investment, a state-owned enterprise in Shanghai, holds a 40 per cent stake in the Yangtze River United Metal Trading Center. It contributed 14 million yuan in profits in the first quarter of this year and about 40 million yuan in the second quarter, showing an upward trend and is expected to contribute 150 million yuan in profits for the whole year.
The company's Lujiao Center is profitable: the logistics sector, mainly Lujiao Center, has been committed to using advanced modern information technology to research and develop China's first and leading logistics public information platform and logistics resources trading platform. to provide modern logistics information, technology and related innovative services for the society. The company's land communication center is engaged in supply chain, cross-border e-commerce and other businesses, with an annual net profit of more than 10 million, which is expected to bring sustainable profits for the company.
The company's investment target Changwang Technology plans to enter the military industry: the invested Changwang Technology is a subsidiary of the company listed in the national share transfer system for small and medium-sized enterprises. It is mainly engaged in high-altitude detection, ground detection sensors, detection system research and production. The company is in a leading position in the development and production of radiosondes in China. Changwang Technology plans to acquire Zhongtian Rocket and cut into the military industry. After years of practice and accumulation, the company has become a leading enterprise in the field of meteorological instruments, with a strong ability of independent innovation and service implementation, and an obvious competitive advantage in the market.
The company plans to set up a 500 million yuan M & A fund, and will actively invest in emerging industries in the primary market in the future: the company plans to contribute 500 million yuan to participate in the establishment of a long-term investment growth M & A fund. Relying on the company's existing industrial integration capabilities, capital platform advantages and capital operation capabilities of professional institutions, organize multiple resources to implement capital operation, promote the company's layout and development in the field of investment, and help the company develop its investment business in the long run.
Investment suggestion
The company actively adapts to the new normal of economic development, solidly promotes investment and investment services, highlights the innovation of platform economy and business model, actively finds and cultivates new growth points, effectively excavates the efficiency of traditional industries, optimizes the industrial investment structure, strengthens the construction of internal control system, and realizes the balanced development of business scale, quality and efficiency during the reporting period.
Valuation
We expect the company to reach a market capitalization of 10 billion yuan in the medium term, giving the company a target price of 32 yuan in the next 6-12 months.
Risk.
Industry competition; the existence of M & A funds failed to raise enough funds in accordance with the agreement.