Main points of investment
On March 2, 2016, the non-public offering plan of Xiangjiang Holdings was conditionally approved. The company's shares have resumed trading since the opening of the market on March 3, 2016.
Comments:
The approval of 2.36 billion yuan will greatly enhance the strength of the company. The approved fixed increase plan is the second after the first fixed increase completed by the company in December of 15 years (2.45 billion yuan in scale and 6.02 yuan in price). The price is 6.06yuan per share. the main content is to inject 5 household commercial properties under the southern Hong Kong, Shenzhen Golden Haima and Hong Kong Group. 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, and major shareholders' support for the listing platform will also be further increased; at the same time, the total amount of funds raised in the two rounds will reach 4.81 billion, leaving 3.81 billion after deducting 1 billion of the cash paid to major shareholders, which will further enhance the company's financial strength, effectively boost investor confidence, and provide protection for the company's long-term development.
Keep optimistic about the prospect of cooperation between the company and Baidu, Inc.. The company signed a cooperation framework agreement with Baidu, Inc. in December 15 to cooperate with Baidu, Inc. Future Store in the areas of intelligence, big data and the application of innovation and technology. We believe that the strong cooperation between the company and Baidu, Inc. 's future store will help the company to lay out the future business ecology. At the same time, the introduction of Baidu, Inc. big data system will help to derive more intelligence-related business models, which is conducive to the long-term development of the company.
The stock incentive granted by the management helps to enhance the cohesion and combat effectiveness; the major shareholders are rich in resources and attach importance to the listing platform. Management recently granted the first stock incentive, a number of 24.48 million, accounting for about 3.19% of the equity (770 million shares) at the time the plan was signed, unlocked on the condition that the relative annual growth rate of non-net profit in 2016-2018 was no less than 82%, 99% and 120%. Stock incentive will help to enhance the cohesion and combat effectiveness of the management of the company. As the only listing platform of major shareholders, Xiangjiang Holdings has also been highly valued by major shareholders.
Investment suggestion: the approval of the company's non-public offering will greatly enhance the financial strength of the company. we are optimistic that the major shareholders of Hong Kong Holdings attach great importance to its only listing platform. the layout of major shareholders in the fields of trade and logistics, big finance, big health and other fields will bring broad space for the future growth of listed companies. At present, the company's RNAV is 11.50 yuan, which provides a certain margin of safety for the current stock price. Regardless of the changes in equity after the private offering, the EPS for 2015-2017 is expected to be 0.28,0.35 and 0.45 yuan respectively, corresponding to a corresponding PE of 25.1,20.1 and 15.6 times, maintaining a "buy" rating.
Risk hint: sales pick up less than expected; restructuring progress is not as expected.
