The shareholder is rich in resources and the company has a clear positioning.
Luxin Group is a core backbone state-owned enterprise in Shandong Province, is the first group to participate in the reconstruction of state-owned enterprises, currently manages assets of more than 300 billion yuan, subordinate to eight business sectors, resource synergy advantage is expected to be reflected. As the equity investment platform of Luxin Group, Luxin Venture Capital is the first A-share venture capital company in China, with a sound and standardized operation and management mechanism and experienced and professional investment team. Under the reasonable regional planning and layout, the company has achieved better project investment returns, including 11 A-share listed companies and 29 new third board listed enterprises. The business cooperation between the company and Luxin Group also brings rich project resources for the company, which has a large space for cooperation and considerable prospects for development in the future.
The transformation of funds has been carried out steadily, and the layout at home and abroad has been carried out simultaneously.
The company is positioned as a state-controlled parent fund + M & A platform, actively promoting fund transformation in the past three years, and now manages 33 funds, including 2 government funds and 31 market-oriented funds (with a total size of about 12 billion yuan). The company has also set up a real estate fund in Shanghai, and successfully established an overseas fund structure in the United States. At present, it has invested in the unicorn project Intarcia in the US pharmaceutical sector as a cornerstone investor, and the company is also looking for investment opportunities in Europe to conduct business exchanges with Germany, Israel and other countries. The company plans to reach the allocation ratio of 5-3-2 in 2017, that is, 50% in the province, 30% outside the province, and 20% outside the province, steadily promoting the "going out" strategy.
Market-oriented investment style, multiple factors to promote development
The company has an open investment and financing platform, and the investment chain covers the whole industry chain from VC to listing. The company also has a professional investment team, young age structure and rich investment experience also highlight the professional investment ability. The company implements the incentive mechanism in line with the market, which is conducive to the construction and operation of overseas funds, and the follow-up of the management team can also effectively achieve risk control on the basis of incentive performance. The company's reserve projects are divided in the proportion of about 4:4:2, and the inefficient and ineffective projects have been processed in batches, which will gradually become the norm in the future. The qualification of Shandong high-tech investment private equity market maker is expected to be approved, and the company's performance will be further improved in the future.
New breakthroughs in industrial development, business to the next floor
The company's three major industrial businesses have made new breakthroughs, and the new workshop for abrasive business has been put into use, with an annual output capacity of 20000 tons, which is in a leading position in the domestic industry and has a place in the domestic market, breaking the situation that foreign products have monopolized the domestic market for a long time. The annual output of abrasive products can reach 3000 tons with sufficient orders. in the future, we will further expand the production scale and R & D efforts, compete with overseas imports with high-quality products, and expand market share. The annual output of sand cloth sand paper industry is about 20 million square meters. In the future, it will further increase the research and development of new products and improve the competitiveness of products.
The impact of the new rules on shareholding reduction is limited, the project reserve is sufficient, and the "overweight" rating is maintained.
The new rules have a limited impact on the overall exit progress of the company, and the number of block transactions will be partially affected by the change in block trading methods. At present, the company has sufficient project reserves, mainly to promote the listing of IPO to achieve exit, the performance development space is considerable. It is estimated that the EPS in 2017-19 is 0.56,0.64 and 0.73 yuan respectively, corresponding to PE 30x, 27x and 23x, and the target price range is 240.27 yuan, maintaining the "overweight" rating.
Risk hint: the progress of the reform is not as expected, the exit mechanism is not smooth, and the investment project is losing money in a large area.