Peace viewpoint:
The traditional retail business is struggling and continues to lose money:
Affected by the slowdown of economic growth at home and abroad, fierce competition in the consumer market, the sudden rise of e-commerce and other factors, the company's original main business operation is bleak, continuously in a state of loss, the company urgently needs to find a new business direction to achieve transformation.
Non-public offering shares to acquire the rental car network, and raise supporting funds:
The commercial city announcement plan shows that it plans to buy 113 million shares at a price of 1.46 billion yuan for a non-public offering of 113 million shares per share. At the same time, it plans to issue 105 million shares to Zhang Zhenxin and other six people in a non-public offering to raise 1.4 billion yuan of matching funds for the purchase of new cars, the construction of vehicle networking platform and supplementary liquidity.
After this transaction, the company will transform into a car networking business enterprise based on car rental business, covering the whole life cycle closed-loop service from vehicle procurement to vehicle disposal.
At the same time, after the completion of this transaction, the major shareholders will also complete the change, "Vanguard Department" will take over "Maoye Department", and Zhang Zhenxin, the actual controller of Vanguard Group, will become the actual controller of the company.
The rental car network is in good condition, and various businesses are progressing steadily:
The company has 2175 self-operated vehicles, covering 27 cities across the country.
The business of car rental network can be divided into three categories: car rental business, driver management training service and vehicle network data value-added service, among which the vehicle network data value-added service includes vehicle network platform management service, collection service and second-hand car derivative business. Among the three categories of main business, the traditional car rental business still makes the highest contribution to operating income and gross profit, accounting for 64.88% and 83.56% of the company's total operating income and gross profit, respectively.
At present, the main customers of car rental network are the government, enterprises and institutions, while the key development customers are DiDi Global Inc. Express, AA car rental and other large cloud-connected chauffeured car platform companies.
Transform the business to meet the development opportunity, the market is huge
In recent years, the policies of the car networking industry have been good, and the state has repeatedly introduced policies to promote the future development of the vehicle networking industry. Under the favorable influence of the policy, there is still a large market to be developed in the car networking industry to usher in the opportunity of rapid development, and the rental car networking also takes advantage of the east wind to usher in the development opportunity. The development of the car rental industry is also in the early stage. with the gradual promotion of the bus reform, the demand for special cars will become more and more exuberant, which will be a great opportunity for the car rental industry, especially for the development of car rental companies focusing on enterprises and institutions, such as the Internet for renting cars.
Investment advice:
The commercial city's acquisition of rental car networking is intended to take advantage of favorable policies to transform the business model from traditional business services to emerging business services, and to complete the business transformation under the new consumer development trend. The new business direction has more room for development, and the investment promises that the net profits of the rental car network in 2016, 2017 and 2018 will be 122 million yuan, 189 million yuan and 242 million yuan respectively, which will effectively thicken the company's performance. Give a "recommended" rating, taking into account the premium of the scarcity target.
Risk Tips:
Market systemic risk, restructuring less than expected risk, business transformation and integration risk.