This report is read as follows:
The company is the trading listing platform of Hangzhou Business Travel Group. Xiebai Shopping Mall and Hangzhou Mansion have rich asset value and stable profits. Since 2015, the company has been active in the field of sports and health, combined with the transformation of the group's assets.
Main points of investment:
Investment suggestion: the company is the only listing platform under Hangzhou Business Travel Group, based on traditional retail and relying on the group's resources, actively expand to health care, sports and other major service industries. The company has its own property in the core area of 210,000 square meters in Hangzhou, and its high revaluation provides a margin of safety.
Since 2015, the company has successively funded the establishment of Yihe International Health Management, the acquisition of Hangzhou Yuesheng, the layout of the great health and sports industry, and the follow-up transformation is expected to continue. Taking into account the intensified competition in the retail industry in Hangzhou, the company lowered its EPS in 2016-2017 to 0.40 (- 0.09) / 0.48 (- 0.04) yuan and EPS:0.58 in 2018; taking into account the company's transformation expectations, it gave the 2016 40XPE with reference to the industry average, raising the target price to 16 yuan and maintaining the "overweight" rating.
The asset value of the main retail business provides a margin of safety, and extension mergers and acquisitions open the road to the layout of large service industries. The company has two core retail assets, Xiebai Shopping Mall and Hangzhou Mansion Shopping Mall, with its own property of 220000 square meters and high revaluation value. In November 2015, the company invested 27 million yuan (45%) with 100 groups and Dean Diagnostics to establish Zhejiang Yihe International Health Management, and planned to build a "D2B2C" health management service platform. In January 2016, he invested 10.79 million yuan to acquire 65.63% shares of Hangzhou Yuesheng sports broker, laying out the sports lottery sales and venue operation industry.
Hangzhou Business Travel Group is rich in assets, and the reform of state-owned enterprises may promote a large service industry platform. The company is the only listing platform under Hangzhou Business and Tourism Group, which has retail, hotel, tourism services, cultural creativity and other seven sector assets, with total assets of 18.3 billion yuan and net profit of 641 million yuan in 2014. In April 2016, the company transferred the assets of the former parent company to the department store subsidiary in order to further clarify the organizational structure, and the company emerged as a holding platform for the large service industry.
Risk hints: epitaxial mergers and acquisitions fall short of expectations; the reform of state-owned enterprises falls short of expectations.