A reasonable valuation of 22.8 billion, with a "highly recommended-A" rating corresponding to more than 40% space after the completion of the acquisition and fixed increase. 1) Dalian Friendship has a net worth of 1.835 billion at the end of 2015. at present, the static PB of the A-share listed commercial and retail industry is 2.9 times that of 2015. Considering the decline of the company's traditional strategic position in the main business, it is conservatively valued at 2.0x15PB, corresponding to a market capitalization of 3.67 billion. 2) the acquisition target promises a net profit of not less than 638 million in 2016. with reference to the dynamic PE of more than 30 times the Internet financial target of A shares, we value the company's financial business 30x16PE, corresponding to a market capitalization of 19.14 billion.
As a drag on the economic downturn, the traditional main business has encountered bottlenecks. The company's traditional main business is retail, real estate and hotel. In recent years, due to the rapid development of e-commerce and sustained economic decline, retail business growth is weak; real estate business is subject to oversupply into a slow destocking stage; hotel business is facing the plight of oversupply and declining profits of the industry as a whole.
Actively transform financial business and build Wuhan financial control platform. The company issued an additional 6.27 billion to Wuxin Investment Group and Wuxin Management Company in November 2015. acquire 100% of Wuxin guarantee Group, 100% of Wuhan small and medium-sized guarantee, 90% of Wuhan Entrepreneurship guarantee, 100% of Wuhan Credit, 18% of Wuxin small loan, 100% of Wuhan Credit, 90% of Wuxin rating, 70% of Hanxin Internet Finance, at the same time, an additional 3 billion to 10 specific investors to increase capital for acquired assets and replenish liquidity.
The four major financial plates complement each other to build a small and micro financing industry chain. The financial assets acquired this time include four major business sectors: guarantee, credit lending, credit information, and Internet finance, forming a complete business industrial chain in providing financing and related product line services for small and medium-sized enterprises. help the company to build a regional financial control platform. 1) the guarantee section covers three companies: Wuxin guarantee, Wuhan small and medium-sized guarantee and Wuhan Entrepreneurship Guaranty. It is committed to providing financing guarantee services for small and medium-sized enterprises through the construction of hierarchical and systematic business levels. 2) Credit issuing and small loan companies in the credit sector focus on providing entrusted loans and micro-loan services for small and micro enterprises. 3) Wuhan credit rating and Wuxin rating of the credit board rely on close cooperation with local governments, and play an important role in the market rating of corporate credit checking Xiaobai Maimai Inc; 4) the Internet financial sector relies on Hanxin Internet Company and "Hanjin Institute" platform, with P2P network lending as the main business model to achieve financing.
Risk hint: traditional business continues to be in the doldrums, business integration is not as expected.