Main points of investment:
What happened: the company announced that Sun Company had won a cultural, recreational and commercial land in Jiaxing.
Won the Xiuhu land in Jiaxing, the first independent land sports complex. The company announced that Laihong Sports, a holding company, won a cultural, recreational and commercial land in Xiuzhou National High-tech Zone of Jiaxing City, with a land area of about 49431 square meters and a volume ratio of 0.6-1.5. it will be planned into a sports service complex integrating sports industrial park, comprehensive sports venues and sports commerce. The land is the company's first sports complex to take land independently, which further enhances the volume of the company's sports space, strengthens the company's business foundation, and fills the market gap for enterprises to participate in the construction of sports facilities.
Accelerate the layout of sports towns, sports complexes, a number of projects landed. By the end of 2016, the company had arranged and operated 10 venues, including 1 large complex and 9 Lander Club fitness clubs. Since 2017, the company has signed contracts in three sports towns in Tonglu, Xiaoshan and Pengzhou, Sichuan, and several sports complexes in Jiaxing, Nanjing, Hangzhou, Chongqing and other places. The company has begun to have a model to accelerate the layout of the social public sports service system strategy.
The strategic direction is clear and the "two core systems" are continuously constructed. Since the transformation of sports, the company has gradually formed two core systems: "high-quality IP event operation system" and "social public sports service system", and defined the business model of "space + content". So far, the company's sports personnel, funds and business have been in place, and the transformation of sports has been continuously promoted.
Investment advice: do not rating temporarily. Based on the existing share capital (that is, before the 2016 increase), the company is expected to earn 0.03 yuan per share in 2017 and 0.05 yuan in 2018. The company's closing price on June 20, 2017 is 7.98 yuan per share, corresponding to 266.00 times of PE in 2017 and 159.60 times of PE in 2018.
The company's personnel, capital and business are in place, and the strategic layout is becoming more and more clear. Closely around the three major IP (football, basketball, ice and snow) + sports towns, the layout of the industrial chain upstream and downstream, to achieve the landing of sports IP. We are optimistic about the company's medium-and long-term development trend and the company's leading position in the sports industry. As the Southampton team acquisition (a major asset restructuring plan suspended by the company's announcement on April 14) is crucial to the company's football IP and the football town project around football IP, and plays a significant role in improving the company's profits. Considering that the acquisition of the team in the original plan is still in progress, if the acquisition is successfully completed, there is still a high probability that the company will restart the major asset restructuring related to the team in the future. In view of the great uncertainty in the acquisition of the football team and the uncertainty in profits, the rating will not be granted for the time being.
Risk hint: there is uncertainty in team acquisitions; sports towns are not as good as expected.