Main points of investment
Event: on April 11, 2016, the company issued shares and paid cash to purchase assets and raise matching funds and related transactions.
Comments:
Dingzeng has been approved, and the strength of the company continues to increase. The major asset restructuring plan is for listed companies to issue shares and pay cash to their related parties, Southern Xiangjiang, Shenzhen Golden Haima and Xiangjiang Group, to purchase property assets related to household business. The acquired assets include southern Xiangjiang's 100% stake in Shenyang Haotiandi, Shenzhen Jinhai's 100% stake in Shenzhen Home Ford, Changchun property and Zhengzhou property, and Guangzhou property held by Xiangjiang Group, of which 700 million yuan is paid in cash. At the same time, the company plans to raise no more than 2.35 billion yuan in matching funds for non-public offerings. It is expected that with the successful implementation of the two core asset injections and supporting financing by major shareholders, the company's high-quality assets will be greatly expanded; at the same time, the fixed increase of no more than 2.35 billion yuan will further enhance the company's financial strength and provide protection for the company's long-term development.
Expand the "own property + own investment operation" model, the scale effect is enhanced. Due to the long development cycle of commercial real estate, it is difficult for the company to provide a large number of high-quality commercial properties for commercial business in the short term. This asset injection will help to speed up the strategic transformation of listed companies to trade business and enhance the core competitiveness of the company's trade business. At the same time, the quality of the company's assets has been greatly improved, and the company's financial structure will be improved. In the future, the continuous and stable rental income of the commercial properties held by the company will effectively improve the financial pressure of the company and enhance the stability of performance.
Investment suggestion: the company will be approved, which will greatly enhance the strength of the company. Major shareholder resources continue to support the development of the company, equity incentives effectively enhance cohesion and combat effectiveness. We estimate the company's RNAV at 11.50 yuan. Regardless of the changes in equity after the private offering, the company's EPS in 2016-2018 is expected to be 0.38,0.49 and 0.58 yuan respectively, corresponding to a PE of 19.4,15.1 and 12.7 times respectively, maintaining a "buy" rating.
Risk tip: sales rebounded less than expected.