The company is a professional venture capital organization controlled by Shandong Luxin Investment holding Group Co., Ltd. with state-owned assets, and the actual control is Shandong SASAC. At present, it is a parallel business model of venture capital business and abrasive industrial operation. Venture capital business is the company's main source of profits.
The company benefits from the new and old kinetic energy conversion scheme in Shandong Province. In January 2018, the National Development and Reform Commission issued the Circular on Printing and issuing the overall Construction Plan of Shandong Comprehensive Experimental Zone for the conversion of New and Old Kinetic Energy, which is an important starting point and traction for Shandong to promote high-quality development. In the field of investment, modern agriculture, marine economy, new energy, new materials and high-end equipment manufacturing are the key industries supported by the conversion of new and old kinetic energy in Shandong Province.
Benefit from the release of new rules for reducing holdings of venture capital funds. On March 1, 2018, the CSRC issued the "Special regulations on the reduction of shares held by shareholders of Venture Capital funds of listed companies". The company directly benefited from the release of the new rules, giving more freedom in rhythm when withdrawing from the IPO project.
Benefit from IPO normalization. Companies engaged in venture capital, phased shareholding is its characteristic, through the capital market to achieve exit is the most ideal exit channel. Regulators strengthen the construction of the basic system of the capital market, the normalization of IPO has formed a stable expectation, and the IPO exit time and efficiency of venture capital institutions have been greatly accelerated.
Shandong Guoxin, a shareholding company, was successfully listed on the Hong Kong Stock Exchange. According to the 2017 semi-annual report, the company holds 125 million shares of Shandong Guoxin, and Shandong Guoxin has a final book value of 159 million yuan, which is conducive to thickening the company's performance.
Profit forecast and valuation: according to the segment valuation method, overall, we give the company a valuation of 10.943 billion yuan. At present, the company's latest closing price is 13.12 yuan, the total share capital is 744 million shares, and the total market capitalization is 9.761 billion yuan. There is a 12.10% premium to the latest closing price, giving "overweight"
Rating.
Risk Tip: the company currently holds 10.14% of the shares of listed company ST Longli (code: 002604.SZ). ST Longli is currently in the suspension stage, with great uncertainty; the secondary market has fallen sharply; the regulation of equity funds has exceeded expectations; and the company has made substantial losses on its investment projects.