Event

1. Zhongjiang Real Estate (600053.CH/ 53.82, bought), Jiuding Investment and Lhasa Kunwu have completed the transfer of the underlying assets of this transaction, and the company has legally owned 100% of Kunwu Jiuding. According to the Business license and Industrial and Commercial change Registration data obtained by Kunwu Jiuding on December 1, 2015, the enterprise type of Kunwu Jiuding has been changed to: limited liability company, and Kunwu Jiuding has become a wholly-owned subsidiary of the company.

two。 The company held the 19th meeting of the sixth session of the board of directors on December 2, 2015, and examined and adopted the "bill on the change of company name": in view of the completion of the company's major asset purchase and related party transactions, and according to the needs of the company's business development, the company intends to change its name from "Jiangxi Zhongjiang Real Estate Co., Ltd." to "Kunwu Jiuding Investment holding Co., Ltd.".

Comment

1, injected into Kunwu, renamed Jiuding, gorgeous transformation of the first PE shares. The company purchased the 100% equity interest in Kunwu Jiuding held by Jiuding Investment (the controlling shareholder of the company's controlling shareholder, Zhongjiang Group) and Lhasa Kunwu (a wholly-owned subsidiary of Jiuding Investment) for 909.8621 million yuan by cash payment. Through reorganization, the company will obtain all the private equity investment management business injected by Jiuding Investment, and plan to change its name to "Kunwu Jiuding Investment holding Co., Ltd.", gorgeously transformed into the first share of PE in Shanghai and Shenzhen stock markets, and formed a business development model of parallel real estate and private equity investment management.

2. The size of Jiuding PE fund is 30 billion, with a long-term planning of 6-80 billion. As of May 2015, Kunwu Jiuding's fund subscription scale has reached 33.2 billion, and the invested project IRR has reached 33%. It is the leading enterprise in the domestic private equity industry. According to the company's strategic plan and 12 billion additional investment projects, the long-term fund size of Kunwu Jiuding will be expanded to 6-80 billion. In addition, the existing team members of Kunwu Jiuding have been integrated into the company after the implementation of this major asset purchase, and will bind the interests of professional investment managers through the "Little Giant" plan to form an effective incentive mechanism.

3. With the rise of scientific and technological innovation, the catalyst continues, and the scarcity target reiterates the buying rating. Under the background of building a multi-level capital market and "mass entrepreneurship and innovation" in China, with the acceleration of the registration scheme, the pilot project of the new third board, the establishment of a strategic new board and Science and Technology Innovation Board, the private equity industry will benefit significantly. The company is currently the only private equity A-share listed company in China, and the actual circulation proportion of market value is small, so it is expected to fully enjoy the valuation premium brought by the target scarcity. We maintain the view of the previous in-depth report "Kyushu Land, winning Venture Capital" and reiterate the company's buy rating.