Investment logic
Capital market reforms have accelerated, and the PE industry has ushered in a golden period of development. With “mass entrepreneurship and mass innovation” driving economic development, China's capital market reform has also accelerated. From the restart of IPOs, the hierarchical reform of the new three boards, and the launch of the Science and Technology Innovation Board within the year, to the launch of the registration system and strategic emerging boards in the first half of next year, at the same time, the popularity of the M&A market and the continuous advancement of mixed reform of state-owned enterprises have greatly benefited, and the industry ushered in a golden period of development.
Jiuding Investment's PE business will be listed on the secondary market, and its influence will further increase. In May 2015, Jiuding Investment acquired 100% of Zhongjiang Group's shares, thereby indirectly holding 72.4% of Zhongjiang Real Estate's shares. Jiuding Investment injected its PE business, Kunwu Jiuding, into Zhongjiang Real Estate. At the same time, Zhongjiang issued no more than 1.2 billion additional shares to Jiuding and its subsidiaries, etc., raising 12 billion yuan to invest in its own capital and develop the Little Giant Plan. When Kunwu Jiuding is listed on the secondary market, its influence will further increase.
Kunwu Jiuding is a leader in the domestic PE industry, and the company will move towards a world-class PE company. Kunwu Jiuding won the top ten PE investment institutions in China for 7 consecutive years from 2009 to 2015. Among them, it won first place in 3 years. The company is a leader in the domestic PE industry. The company has strong growth, rich investment experience, and good return on investment. After entering the secondary market, the company's financing and investment capabilities will be greatly improved, and the company will truly move towards a world-class PE company.
Jiuding Investment has many businesses, and collaborative business development will effectively enhance the company's competitiveness. After listing, Jiuding Investment's capital strength increased rapidly, and it began to develop into a global integrated financial group. The business field has expanded from a single PE investment to securities, public funds, personal venture capital, internet finance, insurance, etc. In the future, it will also be extended to the banking sector. Collaboration between various businesses continues to increase, and will strongly support the improvement of the company's competitiveness in the future.
The company is currently the purest venture capital stock in the secondary market. It has a certain scarcity. After the issuance was completed, Jiuding Investment's shareholding ratio reached 90%. The holdings were highly concentrated, and the shares in circulation were small.
Investment advice
The company has strong growth, rich investment experience, and good return on investment; with the construction of Jiuding Financial Group, strong support will be formed for the company's business development; after entering the secondary market, the company's brand influence will be greatly enhanced. At the same time, the company has few tradable shares as investment targets, which are scarce. Taking into account the company's management scale and the development of its own capital, it is estimated that the reasonable market value after the increase will be about 132 billion yuan, corresponding to the target price of 80.8 yuan/share, covered for the first time, and given a “buy” rating.
risks
The fund's investment income is affected by stock market fluctuations and policy changes; brain drain has led to a decline in competitiveness.