Events:
Tibet Tourism plans to acquire Lakala at a price of 11 billion yuan by issuing shares (18.65 yuan per share) and paying cash, and raise supporting funds of no more than 5.5 billion yuan by issuing shares. After the completion of the deal, Tibet Tourism will own 100% of Lakala. The company will open the dual-drive mode of "traditional tourism + third-party payment".
Main points of investment
1. Tibet Tourism acquires Lakala 100%, from traditional tourism to third-party payment
Tourism in Tibet is the main business, and the specific business includes the development and operation of scenic spots, tourism service business, advertising media and cultural business. In this transaction, Tibet Tourism paid 18.65 yuan per share, issued 8.5 billion yuan of new shares and paid 2.5 billion yuan in cash, with a total price of 11 billion yuan. At the same time, an additional 5.5 billion yuan of matching funds will be issued with 18.65 yuan per share. The total share capital after the rights issue is initially expected to be 940 million shares.
two。 Lakala performance bet to ensure high performance growth in the next three years
According to Lakala's current profit forecast, the future performance growth will mainly come from the POS order collection business Xiaobai Maimai Inc business. Lakala promised to achieve net profits of no less than 450 million yuan, 860 million yuan and 1.45 billion yuan in 2016, 2017 and 2018, respectively.
3. The actual controller becomes Sun Taoran, but it does not constitute a backdoor listing. The core shareholders all take share payment and participate in supporting financing.
After the completion of this transaction, Tibet Tourism will hold 100% equity in Lakala, the control of the listed company will be changed, and Sun Taoran and Sun Haoran will become the actual controllers of the listed company, controlling 28.14% of the shares of the listed company. Lenovo Holdings became the second largest shareholder of the company, with 23.12% of the shares. Ouyang Xu, the former actual controller of the company, and his actors held 6.49% of the shares, making it the third largest shareholder of the company. This time Lenovo Holdings, Sun Taoran, Sun Haoran and their affiliated people take share payment and participate in supporting financing.
4. Lakala: strong license advantage, the leader of third-party payment
Lakala started with "convenient business", with "third-party payment business" as the core, "financial business" in the development. Lakala is one of the first 27 third-party payment companies to obtain a "payment business license" license, and it is one of the few independent third-party payment companies in the industry with nationwide "Internet payment, mobile payment, bank card receipt, cross-border payment, credit information business, small loan business" and other business licenses. In 2015, the transaction volume of bank card collection in Lakala exceeded 900 billion, and the bank card collection business is in a leading position in the industry. In 2015, it ranked third in the market share of third-party mobile payment transactions in China in the third quarter, with a significant position in the industry. In the future, under the condition of ensuring the rapid growth of payment business, we will vigorously develop Internet POS+ projects, integrated business cloud and credit projects, and further create the layout of the "whole industry chain" of financial services. Enterprise receipt business Xiaobai Maimai Inc business will become the main profit growth point in the future.
5. Investment advice:
To sum up, we believe that the company has a clear attitude towards transformation. Through the acquisition of Lakala, the company will optimize and improve the company's existing business structure and profitability, and the company will realize a dual-main business model. the industrial structure will change from tourism to "tourism + third-party payment industry" two-wheel drive. The profit of preparing for exams for tourism in Tibet for 15-17 years (Lakala table) is 106 million, 398 million, 706 million. The EPS of the company from 2015 to 2017 is 0.11, 0.42 and 0.80, respectively, and the corresponding PE is 210, 56 and 29 respectively. We believe that Lakala is the scarce target of third-party payment, and is optimistic about the development of third-party payment industry, covering it for the first time and giving it a recommended rating.
6. Risk Tips:
(1) there is uncertainty that the acquisition failed to be completed on schedule: on March 24, 2016, the CSRC asked questions about backdoor issues, the struggle for control, and the Lakala business model.
(2) the performance of gambling is not up to expectations.