Main points of investment:
Yueda Investment announced on July 9, 2015 that Jiangsu Yueda Group, the controlling shareholder, is planning to increase its holdings, choosing the opportunity to increase its holdings in accordance with regulations during periods of abnormal stock market fluctuations, and promising not to reduce its holdings within six months, which will greatly boost investor confidence and help the company's share price return to its due value.
The new management of Yueda Group attaches great importance to the business development of the company and the capital operation of the listing platform. With the deepening of the state-owned assets reform in Yancheng, Jiangsu, where the company is located, it is expected that there will be innovations in the management system of the group and listed companies. The overall operating efficiency will also be further improved.
As an investment platform for diversified operation, Yueda Investment will focus on automobile-related, new materials and other growing industries in the future. With the more rational use and allocation of resources of listed companies, there is a huge room for its market value to increase in the future.
At present, the leaders of the group have made great efforts to carry out various business inspections, and visited South Korea, Germany and other places with the Yancheng delegation, covering automobile-related industries, beauty industry, industrial 4.0, medical treatment and so on. Yueda Group, as a key local state-owned enterprise, has a unique advantage in industrial layout, and listed companies as its capital operation platform are also expected to benefit.
Continue to be optimistic about Yueda Investment, EPS from 2015 to 2017 is expected to be 0.76,1.14,1.61 yuan. Based on the continuous strengthening of local state-owned assets reform, the operation and management system of listed companies will be further improved, the loss sector is expected to be rectified, and the growth expectation is more promising. The forecast price-to-earnings ratio for 2015-2017 is revised to 25X, 21X and 18.6X. The stock price is expected to reach the range of 19-20 yuan and continue to have a "buy" rating.
Risk hint: China's auto sales have slowed since 2015, joint venture brands have set off a wave of price cuts, and Yueda Kia's sales and profit margins are facing challenges. Textile and coal are under the pressure of loss due to the influence of industry and macro-economy. The layout of group companies and listed companies for new business is still in the research stage. The state-owned assets reform plan has not yet been formally introduced.