Key points of investment
Incident: 1. The company and Pangu (Shenzhen) Development Co., Ltd. jointly invested in cash to establish Shenzhen Pangubang Financial Services Co., Ltd., with a registered capital of 10 million yuan, with investment ratios of 30% and 70% respectively. 2. The company and Pangu (Shenzhen) Development Co., Ltd. jointly invested in cash to establish Shenzhen Pangbang Bang Innovation Incubation Co., Ltd., with a registered capital of 10 million yuan, with investment ratios of 30% and 70% respectively.
Reviews:
Expanding financial services and incubation businesses will create new growth poles for future profits. The company previously signed a cooperation framework agreement with Pangu Group and Kuoye Company to jointly build the “Internet+E-commerce Industrial Park” business, and plans to expand 50-100 industrial parks across the country in the future. Venture incubation companies are mainly responsible for incubating enterprises entering the e-commerce industrial park and the operation and management of the park, and financial service companies are responsible for providing financial services to small and micro enterprises in the e-commerce industrial park and enterprises surrounding the e-commerce industrial park. The financial service companies and incubators set up by the company mainly serve enterprises entering the industrial park, including a large number of start-ups and small and medium-sized enterprises that need to be incubated. According to the company's estimates, a medium-sized industrial park can accommodate at least 500 small and medium-sized enterprises. We expect financial service companies and incubation companies to become important service platforms for the company's future parks, which is expected to create new growth poles for the company's future profits.
The “Internet+E-commerce Industrial Park” business continues to expand, and the development plan is clear. The company signed a cooperation framework agreement with Pangu Group and Kuoye Company to establish joint ventures to establish “e-commerce real estate companies,” “venture incubators,” and “financial service companies.” Currently, companies corresponding to the company's three businesses have all been implemented. We expect the company's “Internet+E-commerce Industrial Park” business to continue to expand further in the future, and the company's development plan is clear. The company's newly developed financial services and incubation business responds to the “mass entrepreneurship, mass innovation” national strategy advocated by the government, which will help the company build an “Internet+E-commerce” industrial park brand and create a new model and platform for enterprise development.
Investment suggestions: Through in-depth cooperation with Pangu Group, the company is expanding financial services and incubation business, which will create a new growth pole for future profits; Caixin Development's majority shareholders have obvious local competitive advantages, and rich resources and strong soft power will lead the company's continuous development. We are optimistic about the rapid development of the majority shareholders and their continued strong support for listed companies. The company's EPS for 2015, 2016, and 2017 is expected to be 0.37, 0.47, and 0.55 yuan, respectively, and the corresponding PE is 126.8, 99.8, and 85.3 times, respectively, maintaining the “buy” rating.
Risk warning: future sales fall short of expectations.