Company announcement: 1. Sichuan Shenyu Agricultural Development Co., Ltd., the former legal shareholder of the company, intends to change the company name, company type, registered address, business scope and other industrial and commercial information. After the change, the enterprise name is Shannan Shanyu Sannong Development Partnership (Limited Partnership), and the registered address is Tibet. Shannan Shanyu of Tibet will inherit 39.52 million shares of Jifeng agricultural machinery held by Sichuan Shenyu (accounting for 11.06% of the company's total share capital) according to law.
2. Shannan Shenyu, a shareholder of the company, plans to reduce the number of shares in the company by no more than 21 million shares from March 12 to September 11, in the form of bulk trading, for the purpose of meeting the company's cash flow needs.
Announcement comments:
To change the company type, registered address and other information of the original legal shareholder Sichuan Shenyu, we expect that it may be for the need of reasonable tax avoidance. In order to attract enterprises to invest and do business, the Tibet region will give certain tax concessions to local enterprises where they are registered. We expect that this change of industrial and commercial information by the company's corporate shareholders may be related to this.
Sichuan Shenyu Company (now Shannan Shanyu Company in Tibet) is an employee shareholding company set up by the actual controller of the company to motivate the management team and core business personnel (in which Chairman Wang Xinming has 51% of the voting rights). At the time of listing, Sichuan Shenyu promised not to reduce its holdings within 36 months after listing. At present, the lock-up period has passed, and the reduction is inevitable. The proposed reduction of no more than 21 million shares will put pressure on the company's share price in the short term.
In 2012, the company's vested net profit fell 80.14% from a year earlier, slightly exceeding our expectations (we had expected a decline of 71%), or 0.04 yuan in EPS. Reason:
① 's construction machinery business lost money in 2012. Due to the impact of the slowdown of macro-economic growth and the cyclical adjustment of the industry, the company's sales volume of construction machinery business has dropped significantly, while bearing higher labor management costs.
The cost of ② increased greatly compared with the same period last year. On the one hand, the scale of subsidies for agricultural machinery on behalf of the company has increased, resulting in a continuous increase in the scale and cost of financing from banks and other financial institutions, and an increase in financial expenses over the same period last year; on the other hand, the increase in the number of employees and changes in structural marketing and management personnel have led to a significant increase in operating and management expenses such as compensation, travel, office and training.
The proportion of minority shareholders in ③ has increased relatively. The regional sales performance of the main cascade holding subsidiaries outside the province has gradually increased, and the investment structure of cascade holding has led to a relative increase in the proportion of minority shareholders, resulting in dilution of the rights and interests belonging to listed companies to a certain extent.
In 2013, major changes will take place in the subsidy policy for the purchase of agricultural machinery, that is, from the original "differential purchase" and "index system" to "full purchase" and "GSP", which is expected to have a far-reaching impact on the agricultural machinery circulation industry.
Profit forecast: reduce the company's EPS in 12-14 years to 0.04,0.12 and 0.19 yuan. It is expected that the company will step up its efforts in the turnround of construction machinery business and cost control in 13 years, and its performance in 13 years is expected to achieve high growth. Maintain the previous point of view: ① due to the impact of macroeconomic and strategic changes, 12 years will be a year of penance, 13 years of corporate performance is expected to achieve high growth; ② company's future growth into the king of China's agricultural machinery circulation trend will not change; ③ company is the theme of agricultural modernization, and urbanization theme of the excellent investment target, the company's stock price valuation is expensive, and facing shareholder reduction pressure, it is recommended to avoid temporarily.
Risk hint: agricultural machinery policy adjustment risk, business risk in the process of expansion, capital bottleneck