Main points of investment:
Event: the company announced that the wholly-owned subsidiary has acquired the project land of "Urban Sports complex" in Hangzhou Xianlin Port.
Obtain the right to the use of state-owned land and build the sports complex of Hangzhou Xianlin Port. The company announced that its wholly-owned subsidiary has won the right to use a sports land in Hangzhou Xianlin Port for the construction of Hangzhou Xianlin Port "Urban Sports complex". The project covers an area of about 12540 square meters, the volume ratio is 1.0-1.1, and the transfer price is 23.8887 million yuan. This is the second urban sports complex project won by the company after Jiaxing Xiuhu Sports complex, which further strengthens the company's sports space volume and project reserves. and for the company's sustainable profitability to enhance, the expansion of brand influence to bring a positive impact.
Build a six-level venue system and build an urban public sports service platform. Since 2017, the company has accelerated the construction of a six-level venue system. In the eastern region, it has signed contracts for two sports towns in Tonglu and Xiaoshan, and two sports complexes in Jiaxing and Hangzhou. At the same time, it cooperated with Zhejiang Sports Bureau to build Zhejiang women's hockey team and curling team. In the southwest, we signed a contract with Gexianshan Sports and Leisure Town in Pengzhou City, Sichuan Province, and leased Chongqing Panlong Sports Park to carry out overall operation and grasp the good prospects for the development of the sports industry in the southwest.
Speed up the development of the layout of the "space + content" business model and strengthen the reserve of sports space projects. 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, the company is expected to earn 0.02 yuan per share in 2017 and 0.03 yuan in 2018. The company's closing price on July 13, 2017 is 7.24 yuan per share, corresponding to 362.00 times PE in 2017 and 241.33 times 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. The company disclosed in its announcement on April 14th that the actual controller had signed an "equity acquisition agreement" with Katharina Liebherr, an overseas natural person, to acquire part of its stake in St. Mary's Football Group Co., Ltd. As the Southampton team acquisition is critical 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, if the actual controller successfully completes the acquisition, 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.